BlueLinx sales slip in Q1
Atlanta-based BlueLinx Holdings, a leading U.S. wholesale distributor of building products, reported financial results for the three months ended March 30.
Net sales of $726 million were down 8.9 percent, from $797 million in the same quarter last year.
Net income was down slightly to $17.5 million, compared to $17.8 million in the prior year quarter.
“We are off to a solid start to 2024, despite ongoing deflationary pressures associated with our specialty business and January weather conditions that adversely impacted volumes," said President and CEO Shyam Reddy.
Net sales of specialty products, which includes products such as engineered wood, siding, millwork, outdoor living, industrial products and specialty lumber and panels, decreased 11% to $504 million in the quarter. Deflation across several speciality categories caused the drop.
Net sales of structural products—including lumber, plywood, oriented strand board, rebar, and remesh—fared better, but still declined 3 percent.
Bottom line: Q1 net income slipped 1.7 percent to $17.5 million.
What the CEO said: "We are pleased with the results for the quarter as volumes recovered and we maintained strong margins in specialty and structural products,” said Reddy. “I am excited about the team we have in place to execute our sales growth strategy through uncertain market conditions. Our strong liquidity gives us the flexibility to pursue our strategic initiatives and opportunistically return capital to shareholders.”
For more: The company's full earnings release is here.
