Boise Cascade Q4 earnings soar
Boise Cascade reported fourth quarter 2017 net sales of just over $1 billion, up 19% from fourth quarter 2016 net sales of $919 million. For the full year, the engineered wood products and building products supplier reported sales of $4.43 billion, a 13% increase from sales of $3.91 billion in 2016.
The Boise, Idaho-based company also reported a fourth quarter net income of $19.1 million, soaring well above a fourth quarter 2016 net income of $4 million. For the full year Boise Cascade reported a net income of $83 million, increasing 117% from a net income of $38.3 million in 2016.
Wood products sales, including sales to building materials distribution (BMD), increased $41.2 million, or 14%, to $330.9 million for the three months ended Dec. 31, 2017, from $289.7 million for the three months ended Dec. 31, 2016. The increase in sales was driven primarily by increases in plywood and lumber sales prices and increases in LVL and I-joist (collectively EWP) sales volumes. In addition, sales prices of LVL and I-joists increased, the company said.
For the year, wood product sales, including sales to BMD, increased $93.3 million, or 7%, to $1.37 billion from $1.28 billion in 2016. The increase in sales for the year was again driven primarily by higher sales prices for plywood and lumber, as well as higher sales volumes of LVL and I-joists. An increase in sales prices for both LVL and I-joists also contributed to the improved sales.
"Our distribution business closed out 2017 with another strong quarter of revenue and earnings growth. In 2017, the team in BMD far exceeded their previous annual revenue and earnings records. Very strong plywood pricing and favorable sales prices and volumes for our engineered wood products compared to those in last year`s fourth quarter combined to drive substantial improvement in our Wood Products earnings," said Tom Corrick, Boise Cascade CEO. "We were successful in improving our free cash flow generation and balance sheet during 2017 and are very well positioned to take advantage of the continued recovery in single-family residential construction as 2018 progresses."
