BlueLinx posts Q4 net loss as sales slide
Building products distributor BlueLinx reported fourth quarter 2023 sales declined 16% to $713 million compared to fourth quarter 2022 sales of $848 million.
Sales of specialty products, including engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products, decreased 17.7%, to $487 million. BlueLinx said the decline was primarily due to price deflation across several product categories.
Structural product sales at BlueLinx, which includes lumber, plywood, oriented strand board, rebar, and remesh, fell 11.8%, to $226 million in the fourth quarter. The company attributed the falloff to a decrease in sales and price deflation, including a 15% drop in the average composite price of framing lumber.
Sales for the full year fell 29.5% to $3.14 billion from 2022 sales of $4.45 billion.
BlueLinx posted a net loss of $18 million in the fourth quarter. In the fourth quarter 2022, BlueLinx posted a net income of $32 million.
The Atlanta, Georgia-based distributor also reported a net income of $48.5 million for its full fiscal year in comparison to $296.2 million in the prior year.
The company noted that through the first seven weeks of its first quarter 2024, daily sales volumes for specialty and structural products are down approximately 10% versus the prior year. BlueLinx said the slide is partially due to severe weather conditions in January.
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The Bottom Line: As commodity prices dwindle, along with sales volume, BlueLinx reports a $18 million net loss in the fourth quarter.
What the CEO said: “Specialty products continued its strong margin performance and accounted for 70% of net sales and 80% of gross profit for the year,” said BlueLinx President and CEO Shyam Reddy. “Structural products also performed well and continue to complement our specialty products business. With strong liquidity and minimal net debt, we are well-positioned to execute on our long-term sales growth strategy and to return capital to shareholders.”
Company info: Click here to read the 2023 fourth quarter and full-year financial report from BlueLinx.
