Boise Cascade is optimistic after Q2 performance

Boise Cascade Company pulled ahead in the second quarter, and the company said it had reason to feel optimistic about the remaining two quarters.

Net sales for the quarter ended June 30 were $1.14 billion, up 9% year-over-year. Net income enjoyed a 15% boost, reaching $22.15 million.

Segment-wise, sales of Wood Products were up 1%, and Building Materials Distribution was up 15%.

"Distribution enjoyed another strong quarter, with solid volume growth across product lines and excellent execution during a volatile commodity price environment," said CEO Tom Corrick. "Wood Products results were slightly lower than the prior year quarter, as plywood pricing improvements were offset by lower EWP price realizations and input cost pressures."

"However, I am optimistic for the second half of the year as we make further progress on our operational improvement opportunities and see the impact of our EWP price increase," he added. "The tone in the marketplace is positive and we are seeing renewed strength in commodity prices as we begin the third quarter."

Boise Cascade added that it expects to operate some of its facilities below their capacity as it did in 2016, and that plywood sales volumes will be below prior-year levels as it shifts more veneer away from plywood in support of EWP growth.