Foundation Building Materials sales slide in Q3

Foundation Building Materials (FBM) reported third quarter sales fell 7.7% to $521.3 million from third quarter 2019 sales of $565 million.

The Santa Ana, Calif.-based building products distributor also reported a net income from continuing operations of $11.8 million, down 7.1% from a net income from continuing operations of $12.7 million for the same period last year.=

FBM’s average daily net sales decreased 9.2% over the prior period. Net sales from base business decreased $51.8 million compared to the prior period, and average daily base business net sales decreased by 11% over the prior period.

The company said the COVID-19 pandemic had a big impact on commercial construction activity compared to the residential market, causing net sales from its suspended ceiling systems and metal framing product lines to decreased more than its net sales from other product lines. 

Foundation Building Materials operates 170  branches in the United States and Canada.

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The Bottom Line: The pandemic hits commercial sales as profits fall 7.1% to $11.8 million and sales slide 7.7% to $521.3 million.

What the CEO said: "Despite the challenging market conditions in the third quarter, we have maintained profitability by optimizing our cost structure. We continue to generate strong cash flows to invest in our business while reducing our debt levels to historic lows," said Ruben Mendoza, president and CEO. "We will continue to navigate this challenging environment by focusing on driving organic growth and maximizing profitability to create long-term value for our Company."

Company info: Foundation Building Materials’ full third quarter financial report is available here.