BlueLinx sales sizzle in Q1
Building products distributor BlueLinx reported first quarter 2022 sales increased 27% to $1.3 billion from sales of $1 billion in the first quarter of 2021.
Net sales of structural products, including lumber, plywood, oriented strand board, rebar, and remesh, increased 16%, to $534 million in the first quarter due to continued strong demand for building products and increased wood-based commodity prices, BlueLinx said.
Net sales of specialty products, which includes engineered wood, siding, moulding and millwork, outdoor living, specialty lumber, and industrial products, increased 36% to $768 million for the quarter.
The Marietta, Ga.-based company also posted a first quarter net income of $133.4 million, more than doubling last year’s first quarter net income of $61.9 million.
Following a detailed review of its multi-year capital allocation plans, BlueLinx’s Board of Directors has increased the company’s share repurchase authorization to $100 million including a $60 million accelerated share repurchase agreement that will begin this week.
BlueLinx services over 40 states including 15,000 national, regional, and local dealers, specialty distributors, national home centers, and manufactured housing customers.
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The Bottom Line: BlueLinx’s net income jumps 115% as specialty product sales soar 36% to $768 million.
What the CEO said: “We currently believe near-term fundamentals for the U.S. housing industry are healthy despite the recent rise in mortgage rates and broad-based inflation,” said Dwight Gibson, president and CEO of BlueLinx. “Specifically, we believe high levels of home equity, housing turnover, and aging housing stock will continue to support growth in repair and remodel activity and the low supply of available homes will continue to drive investment in both existing and new homes.”
Company info: Click here to read the first quarter 2022 financial report from BlueLinx.