Strong LVL and I-joist sales volumes boost Boise Cascade in Q4

Boise Cascade Company reported a strong fourth quarter and a full year period that was characterized by a sales win and an earnings slip.

Increased sales volumes in LVL and I-joist sales helped boost the company's top line during the fourth quarter, which saw net sales of $919.5 million (up 5% year-over-year).

Net income for the quarter was $4.1 million, up 76% from $2.3 million in the year-ago period.

"Our distribution business had another strong quarter to close out 2016," said CEO Tom Corrick. "Our Wood Products business made progress on a number of fronts, but the financial performance was disappointing. Wood Products continued to struggle with startup issues at the Roxboro, North Carolina, EWP facility and plywood pricing declined 7% from the third quarter. On the positive side, the ramp up of sales related to EWP business wins during 2016 accelerated in the fourth quarter, which was reflected in our strong LVL and I-joist sales volumes. Also, the capital projects at our Chester, South Carolina, plywood operation were successfully completed in December and the mill is running well."

"I am optimistic that we can continue to successfully grow our distribution operations in the year ahead," he added. "We still have work to do on the restart and integration of the Roxboro EWP mill we acquired last year, but capital spending in Wood Products is expected to decline in 2017. The management team is very focused on driving productivity and cost efficiency in manufacturing and improving sales realizations for both EWP and plywood."

For the full year 2016, net sales of $3.9 billion moved the needle 8% from 2015's $3.6 billion.

However, the company moved from net income of $52.2 million to net income of $38.3 million for the year, or a decrease of 27%.

Boise Cascade also confirmed its intentions to continue to ramp up production of LVL and I-joists at its EWP facility in Roxboro, North Carolina, as well as consider more acquisitions.