Boise Cascade posts big loss in Q4
Boise Cascade reported a net loss of $72.2 million for the fourth quarter 2018 compared to a net income of $19.1 million in the fourth quarter 2017.
For the full year, Boise Cascade posted a net income of $13.8 million, down more than 32% from a 2017 net income of $20.4 million.
The Boise, Idaho-based building products and building solutions provider said earnings for 2018 were negatively impacted by $24 million of pre-tax impairment and sale related losses for the pending sale of its plywood facility in Moncure, N.C. The company was also impacted by $55 million and $2.8 million of pre-tax accelerated depreciation and other curtailment related costs due to the permanent curtailment of LVL production at its Roxboro, N.C. facility.
The sale of 3 wood products facilities in Oregon resulted in an additional $11.5 million in charges while pre-tax pension settlement charges caused another $23.5 million in charges, the company said.
Sales for the fourth quarter reached $1.1 billion, flat compared to sales of $1.1 billion in the fourth quarter 2017. Full-year sales were $5 billion up 13% from sales of $4.4 billion for fiscal 2017.
Wood products sales, including sales to Building Materials Distribution (BMD), decreased $23.8 million, or 7%, to $307.1 million for the three months ended Dec. 31. The decline in sales was driven primarily by a decrease in sales volumes for plywood, I-joists and LVL, a decrease in sales prices for plywood, and decreased sales resulting from the sale of Boise’s particleboard facility and the sale or closure of 3 of 5 sawmills during 2018.
For the full year, wood products sales increased 12%, to $1.53 billion %1.37 billion. The increase in sales was driven primarily by higher sales price for plywood and engineered wood products.
BMD's sales decreased $9.5 million, or 1%, to $922.2 million for the quarter while sales for the year rose or 14% to $4.28 billion from $3.77 billion.
Looking ahead, the company said it expects to experience slower demand growth for its products and expects residential construction growth to be flat, or just mildly better, in 2019 due to labor and lot constraints faced by builders, along with affordability issues faced by prospective buyers.
For the full year, Boise Cascade posted a net income of $13.8 million, down more than 32% from a 2017 net income of $20.4 million.
The Boise, Idaho-based building products and building solutions provider said earnings for 2018 were negatively impacted by $24 million of pre-tax impairment and sale related losses for the pending sale of its plywood facility in Moncure, N.C. The company was also impacted by $55 million and $2.8 million of pre-tax accelerated depreciation and other curtailment related costs due to the permanent curtailment of LVL production at its Roxboro, N.C. facility.
The sale of 3 wood products facilities in Oregon resulted in an additional $11.5 million in charges while pre-tax pension settlement charges caused another $23.5 million in charges, the company said.
Sales for the fourth quarter reached $1.1 billion, flat compared to sales of $1.1 billion in the fourth quarter 2017. Full-year sales were $5 billion up 13% from sales of $4.4 billion for fiscal 2017.
Wood products sales, including sales to Building Materials Distribution (BMD), decreased $23.8 million, or 7%, to $307.1 million for the three months ended Dec. 31. The decline in sales was driven primarily by a decrease in sales volumes for plywood, I-joists and LVL, a decrease in sales prices for plywood, and decreased sales resulting from the sale of Boise’s particleboard facility and the sale or closure of 3 of 5 sawmills during 2018.
For the full year, wood products sales increased 12%, to $1.53 billion %1.37 billion. The increase in sales was driven primarily by higher sales price for plywood and engineered wood products.
BMD's sales decreased $9.5 million, or 1%, to $922.2 million for the quarter while sales for the year rose or 14% to $4.28 billion from $3.77 billion.
Looking ahead, the company said it expects to experience slower demand growth for its products and expects residential construction growth to be flat, or just mildly better, in 2019 due to labor and lot constraints faced by builders, along with affordability issues faced by prospective buyers.