Sales and earnings slide at Boise Cascade

Boise Cascade reported third quarter 2023 sales fell 15% to $1.8 billion from third quarter 2022 sales of $2.2 billion.

Sales in the company’s Wood Products division, including sales to its Building Materials Distribution (BMD) business, decreased 13%, to $515.2 million for the quarter. The Boise, Idaho-based company said the decline in sales was driven by lower plywood sales prices, lower sales prices for I-joists and LVL (engineered wood products/EWP), and lower LVL sales volumes. 

These decreases were offset partially by higher plywood sales volumes, Boise Cascade noted.

BMD sales decreased 15%, to $1.67 billion in the third quarter from sales of nearly $2 billion for the same period a year ago. Compared with the same quarter in the prior year, the overall decrease in sales was driven by sales price and sales volume decreases of 14% and 1%.

By product line, BMD commodity sales decreased 20%, general line product sales decreased 5%, and EWP sales decreased 21%.

Boise Cascade posted a net income of $143.1 million for the quarter, falling 35% from a net income of $219.6 million for the same period last year.

At the start of last month, Boise Cascade finalized its $172 million acquisition of New England building products distributor Brockway-Smith Company (BROSCO).

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The Bottom Line: Profits at Boise Cascade decreased 35% to $143.1 million as total sales dropped 15%.

What the CEO said: “After another solid quarter of operating and financial performance, I want to first thank our associates for their continued focus, hard work, and loyalty,” said Nate Jorgensen, CEO of Boise Cascade. “In addition, we are pleased to have recently completed the acquisition of BROSCO and welcome their outstanding team to Boise Cascade. The acquisition supports BMD's growth in the door and millwork business and brings us immediate scale in the Northeast markets.”

Company Info: The full third quarter 2023 financial report from Boise Cascade is available here.