BlueLinx Q3 sales decline
Sales at BlueLinx Holdings, the Atlanta-based building products distributor, were down 24 percent in the third quarter, the company reported late Tuesday.
The company’s specialty-products sales—which include engineered wood, siding, millwork and outdoor living—were down 23 percent compared to the year ago period.
Structural products—lumber, plywood, OSB included—were down 25 percent.
Net income was $24.3 million, down from $59.5 million in the same quarter last year.
The combination of deflation and lower volumes weighed on sales. The company pointed to year-over-year declines in the average composite prices of framing lumber and structural panels of 26% and 6%, respectively.
President and CEO Shyam Reddy said he was pleased with strong margins in specialty products, which accounted for about 70 percent of net sales. Gross margin in specialty products was 19.8% in the quarter, compared to 20.9% in the prior year period.
"Our third quarter results demonstrate our ability to execute on our strategy, despite a challenging interest rate environment adversely impacting the housing and building products sector,” said Reddy.
