Sales and profits boom at Boise Cascade
Building products manufacturer and distributor Boise Cascade reported second quarter sales increased 97% to $2.4 million from second quarter 2020 sales of $1.2 million.
The company’s wood product sales shot up 111% to $$594.6 million for the quarter from $281.5 million in the second quarter a year ago. The increase in sales was driven primarily by higher plywood prices, as plywood demand in the second quarter outpaced industry production levels, driving favorable pricing.
Higher sales volumes and net sales prices for I-joists and LVL, Boise’s engineered wood product (EWP) sales also increased compared to the prior period. In addition, improved lumber sales prices and plywood sales volumes contributed to the increase in sales.
Boise’s Building Material Distribution sales increased 92%, to $2.17 billion for the period. Compared with the same quarter in the prior year, the overall increase in sales was driven by sales price and volume increases of 83% and 9%, the company said.
The Boise, Idaho-based company posted a net income of $302.6 million for the quarter compared to a net income of $33.6 million in the prior second quarter.
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The Bottom Line: Profits at Boise Cascade rocket up to $302.6 million as sales soar 97% to $2.4 billion.
What the CEO said: “Our associates in both businesses performed with focus and dedication to capitalize on the strength in residential construction, delivering exceptional results while supporting our customers and supplier partners. Additionally, as a tribute to our associates’ commitment to safety, I’m proud to report we completed one of our safest quarters on record,” said Nate Jorgensen, CEO of Boise Cascade. “As we look to the third quarter, the downward commodity pricing trends experienced in recent weeks have created a challenging environment, and we are focused on mitigating their impact without sacrificing customer service. The strength of our current balance sheet position allows us to remain focused on executing our strategy, including future organic and acquisition growth opportunities.”
Company info: The full second quarter 2020 financial report from Boise Cascade is available here.