Boise Cascade lifts profits in Q2
Boise Cascade Company reported that second quarter consolidated sales edged up by 1% to $1.24 billion as compared to second quarter 2019 sales of $1.23 billion.
But the Boise, Idaho-based company saw profits jump as it reported that its net climbed 21% to $33.6 million in the second quarter from a net income of $27.7 million for the second quarter last year.
Wood product sales fell 16% in the second quarter to $281.5 million from sales of $334.2 million for the same period a year ago.
The decrease in Bosie Cascade’s wood products division sales was driven primarily by lower sales volumes for I-joists and LVL, as well as decreased sales volumes for plywood. In addition, lumber, LVL, and I-joists net sales prices also decreased. These decreases were offset partially by increases in sales prices for plywood, Boise Cascade reported.
Building material distribution sales increased 3% to $1.134 billion for the period from sales of $1.097 billion in the corresponding period last year. Compared with the same quarter in the prior year, the overall increase in sales was driven by a sales price increase of 4%, offset partially by a sales volume decrease of 1%.
###
The Bottom Line: While sales are nearly flat for the second quarter, Boise Cascade reports a 21% surge in profits and a net income of $33.6 million.
What the CEO said: "Both of our businesses delivered strong financial results in the face of this unprecedented environment,” said Boise Cascade CEO Nate Jorgensen. “Wood Products' continued focus on manufacturing cost improvements was especially notable given production curtailments and modifications. BMD's sales and income were robust, and our long-term strategy and commitment to consistently carry a broad base of in-stock products, supported by high service levels and a solid financial position, continues to deliver value to our vendor and customer partners in the supply chain, as well as our shareholders."
Company info: Click here to read Boise Cascade’s full second quarter 2020 report.