Boise Cascade sales increase 15%

Boise Cascade Company reported net sales of $1.23 billion for the third quarter 2017, a 15% increase from net sales of $1.07 billion in the third quarter 2016.

The Boise, Idaho-based wood products and building products titan also reported a net income of $31.7 million for the period, compared to a net income of $10 million in the third quarter 2016, which included a $9.5 million pre-tax loss on debt extinguishment.

Wood products sales, including sales to building materials distribution (BMD), increased 8% to $366.9 million for the three months ended Sept. 30, 2017, from $340.9 million for the three months ended Sept. 30, 2016. The increase in sales was driven primarily by higher plywood sales prices and volumes, as well as higher sales prices for I-joists and LVL (EWP), the company reported. In addition, increased lumber sales prices contributed to the increase in sales. These increases were offset by decreases in EWP sales volumes.

BMD sales increased 18% to $1.05 billion during the quarter from sales of $889 million in the third quarter 2016.  Compared with the same quarter in the prior year, the overall increase in sales was driven by sales price and sales volume increases of 10% and 8%, Boise reported. By product line, commodity sales increased 21%; general line product sales increased 14%; and sales of EWP increased 16%.

“Distribution posted an exceptional quarter, with excellent execution and tailwinds from a strong commodity price environment. Improved results in wood products were driven by strong plywood prices and the impact of previously announced EWP price increases,” Tom Corrick, Boise Cascade CEO, said in a statement.

“The catastrophic storms in the southern U.S. created incremental plywood demand, and our sales and operations teams did a great job of responding to customer needs," Corrick added. "We expect to experience seasonally slower demand in the fourth quarter, and commodity pricing will be subject to downside risks. We remain well positioned to support single-family housing starts growth that continues to post solid year-over-year gains."

Looking ahead, Boise Cascade said future commodity product pricing could be volatile in response to industry operating rates, net import and export activity, the North American softwood lumber trade dispute, inventory levels in our distribution channels, and seasonal demand patterns.