Commodity pricing impacts BlueLinx Q2 sales, profits

Building products distributor BlueLinx reported second-quarter sales declined 5% to $1.2 billion from second quarter 2021 sales of $1.3 billion.

BlueLinx said net sales of specialty products, which includes  engineered wood, siding, millwork, outdoor living, specialty lumber and industrial products, increased $113 million, or 17%, to $788 million in the second quarter. This growth was primarily driven by strategic pricing actions, offset partially by slightly lower volume when compared to the prior year.

Sales of structural products for the quarter, including lumber, plywood, oriented strand board, rebar, and remesh, decreased 29%, to $452 million. The decrease in structural sales and gross profit was due primarily to a significant decline in the average price of wood-based commodities, the distributor said.

The Marietta, Ga.-based company posted a net income of $71 million for the second quarter, dropping 37% from a net income of $113 million for the same period last year.

Net cash generated from operating activities was $101 million in the second quarter 2022 compared to $47 million in the prior year period.

The increase in cash generated from operating activities compared to the prior year was driven primarily by a $74 million reduction in accounts receivable which benefited from wood-based commodity deflation during the period.

BlueLinx is  a distributor of residential and commercial building products with both branded and private-label SKUs across product categories such as lumber, panels, engineered wood, siding, millwork, and industrial products.

The company serves about 15,000 customers in 45 states, including national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers, and industrial manufacturers.