Profits soar at BlueLinx in Q2
Building products distributor BlueLinx reported second net sales soared 87% to $1.3 billion from net sales of $698.8 million in the second quarter 2020.
Sales of specialty products, including engineered wood, industrial products, cedar, moulding, siding, metal products and insulation, increased $226 million to $675 million in the second quarter.
BlueLinx noted that elevated demand for construction materials, along with continued supply constraints, contributed to price increases throughout the second quarter, improving net sales growth.
Specialty sales volumes increased, with growth primarily attributed to the engineered wood, industrial products, and siding categories.
Net sales of structural products, including lumber, plywood, oriented strand board, rebar, and remesh, increased $383 million to $633 million in the second quarter.
Profits jumped at BlueLinx as the company posted a net income of $113 million for the quarter compared to a net income of $7 million in the prior second quarter.
Based in Marietta, Ga., BlueLinx serves 15,000 national, regional, and local dealers, specialty distributors, national home centers, and manufactured housing customers in 40 states.
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The Bottom Line: Earnings at BlueLinx shoot up to $113 million in the quarter from $7 million in the second quarter 2020 as sales rise 87%.
What the CEO said: “Our record-setting second quarter performance was driven by a combination of product price escalations, overall volume growth within our specialty products business and an improved sales mix,” said Dwight Gibson, president and CEO of BlueLinx. “Supply-demand imbalances continued to persist across our specialty categories throughout the second quarter, resulting in a succession of supplier price increases that allowed the company to expand its margins. We expect that demand for key specialty categories will continue to outpace supply for the remainder of the current year and likely into the first half of 2022.”
Gibson succeeded former CEO Mitch Lewis who retired on June 7.
Company info: The full second quarter 2021 financial report from BlueLinx is available here.
