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Boise Cascade posts mixed results in Q3

11/6/2018
Boise Cascade posted third quarter 2018 net sales of $1.3 billion, up 9% from net sales of $1.2 billion in the third quarter 2017.

The engineered wood products and plywood supplier and building products distributor also posted a third quarter net income of $13.8 million – a 56% drop from a net income of $31.7 million for the same period in 2017.

Wood Products sales, including sales to its Building Materials Distribution (BMD) division, increased 10% to $402.7 million for the third quarter. The increase in sales was driven primarily by higher sales prices for plywood, I-joists and LVL, along with increases in engineered wood products (EWP) sales volumes, the Boise, Idaho-based company said. But these increases were offset by a decrease in plywood sales volumes.

BMD sales grew 11% to $1.2 billion for the quarter, up from about $1 billion in the third quarter a year ago. The overall increase in sales was driven by sales price and sales volume increases of 7% and 4%, respectively. By product line, commodity sales increased 10%, general line product sales increased 9%, and sales of EWP increased 18%.

"While both of our businesses operated well during the quarter, the economic backdrop was challenging given sharp declines in commodity prices and flattening housing data. The impact of a falling price environment was most notable in our distribution business," said CEO Tom Corrick. "However, strategic steps we have taken thus far in 2018 have the company well-positioned now and into the future. The decisions we make are closely aligned with our strategic focus on veneer-based manufacturing and nationwide building materials distribution.”

This morning Boise Cascade reported that it will permanently curtail laminated veneer lumber production at its Roxboro, N.C. facility by Dec. 31.

“Unfortunately, after a great effort by the team at Roxboro, we have been unable to reduce manufacturing costs to an acceptable level,” Corrick said.

Roxboro will continue to produce I-joists with no anticipated impacts to customers. The company also noted that there are additional capacity and expansion opportunities at its Alexandria, La., and Thorsby, Ala., EWP facilities.

 
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