BlueLinx swings to a profit as sales surge

Building products distributor BlueLinx reported fourth quarter 2020 sales leaped 41% to $865 million compared to fourth quarter 2019 sales of $613 million.

For the full year, 2020 net sales increased 17% to $3.1 billion from 2019 total net sales of $2.6 billion.

Fourth quarter net sales for specialty products, which includes engineered wood, cedar, moulding, siding, metal products, and insulation, accounted for $498 million, or 58%, of net sales in the period. 

Net sales of structural products, which includes lumber, plywood, oriented strand board, rebar, and remesh, were $367 million, or 42% of sales for the fourth quarter.

The Marietta, Ga.-based company saw its fourth quarter net income swing to $20 million from a loss of $10.2 million for the same period a year ago. 

For the year, BlueLinx posted a net income $81 million compared to net loss of $17.7 million in the previous year.

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The Bottom Line: Sales for the fourth quarter soared 41% to $865 million as BlueLinx profits climb to $20 million for the period, marking a $30 million swing from the prior fourth quarter.

What the CEO said: “The fourth quarter was a fantastic conclusion to a historic year for BlueLinx, one where improved execution, pricing discipline, effective inventory management and market tailwinds resulted in record financial performance for the Company and significant debt reduction,” said Mitch Lewis, BlueLinx president and CEO. “We again recorded significant increases in net sales along with strong margins as current market conditions remain favorable, supported by strong demand for new residential construction and increased home renovation activity.  Our operational improvements that began in 2019 continued to yield significant benefits as they led to excellent customer service, sales growth, margin expansion and disciplined working capital management.”

Company info: The full fourth quarter 2020 and full year report from BlueLinx is available here.