Beacon’s losses widen in Q3

Beacon reported third quarter sales decreased 6.9% to $1.79 billion from third quarter 2019 sales of $1.92 billion.

Year-to-date sales for the first nine months of 2020 decreased 2.9% to $4.93 billion.

The Herndon, Va.-based building and roofing products distributor reported a net loss of $6.7 million for the period compared to a net income of $31 million in the third quarter a year ago. Beacon said the loss was primarily driven by a comparative $41.2 million tax provision increase.

Beacon’s net loss for the first three quarters of the year swelled to $152.8 million in comparison to a net loss of $38 million for the first nine months of 2019.

The company operates more than 500 branches in the United States and Canada.

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The Bottom Line: Beacon reports a net loss of $6.7 million for the quarter as sales fall nearly 7% to $1.79 billion.

What the CEO said: “Although certain cost actions were clearly temporary in nature, we remain focused on improving our expense structure to produce permanent efficiency gains and foster attractive levels of operating leverage as demand improves,” said Julian Francis, president and CEO of Beacon. “Sales steadily improved throughout the quarter, as COVID-19 restrictions eased and economies reopened, highlighted by June daily sales that were similar to prior year levels.”

Company info: Beacon’s full third quarter results report can be read here.