Sales rise, profits fall for Foundation Building Materials
Foundation Building Materials, Inc., reported consolidated net sales of $536.3 million for the first quarter 2018 — an 11.9% increase compared to sales of $479.5 million for the same three months of 2017.
The company also reported a consolidated gross profit of $154.4 million for the period, a 10.4% increase compared to $139.9 million during the same period a year ago.
But Foundation posted a net loss of $1.1 million during the quarter, compared to net income of $3.9 million for the first quarter of 2017.
Specialty Building Products net sales increased nearly 11% for the quarter to $463.7 million, with sales from acquired branches and existing branches, strategically combined with acquired branches, contributing $32 million of the increase.
Mechanical Insulation sales were $72.6 million, rising 19.1% for the quarter. Base business net sales contributed $9.3 million of the increase, primarily due to higher net sales to industrial end markets, the company said.
During the first quarter, the company completed two acquisitions totaling seven branches. For 2018, these two acquisitions are expected to contribute $27.0 million to $29.0 million to net sales, Foundation said.
The Tustin, Calif.-based specialty building product distributor of wallboard, suspended ceiling systems and mechanical insulation operates more than 220 branches across the United States and Canada.
The company also reported a consolidated gross profit of $154.4 million for the period, a 10.4% increase compared to $139.9 million during the same period a year ago.
But Foundation posted a net loss of $1.1 million during the quarter, compared to net income of $3.9 million for the first quarter of 2017.
Specialty Building Products net sales increased nearly 11% for the quarter to $463.7 million, with sales from acquired branches and existing branches, strategically combined with acquired branches, contributing $32 million of the increase.
Mechanical Insulation sales were $72.6 million, rising 19.1% for the quarter. Base business net sales contributed $9.3 million of the increase, primarily due to higher net sales to industrial end markets, the company said.
During the first quarter, the company completed two acquisitions totaling seven branches. For 2018, these two acquisitions are expected to contribute $27.0 million to $29.0 million to net sales, Foundation said.
The Tustin, Calif.-based specialty building product distributor of wallboard, suspended ceiling systems and mechanical insulation operates more than 220 branches across the United States and Canada.