Sales and profits decrease at BlueLinx
Building products distributor BlueLinx Holdings reported first quarter sales declined 39% to $797,904 as compared to sales of $1.3 billion for the first quarter 2022.
The Marietta, Georgia-based company said net sales of specialty products, which engineered wood, siding, millwork, outdoor living, industrial products, and specialty lumber and panels, decreased $200 million, or 26%, to $568 million in the first quarter.
Sales of structural products, which include lumber, plywood, oriented strand board, rebar, and remesh, decreased $304 million, or 57%, to $230 million for the period.
The company said the prices of framing lumber and structural panels were down 67% and 60% for the quarter.
In its first quarter financial report, BlueLinx said, “Our end-markets, including repair and remodel, new residential construction, and commercial construction, continue to experience pressure from the higher interest rate environment and economic uncertainty, resulting in lower activity levels and a decrease in demand for building products.”
BlueLinx also said that it experienced a “meaningful decline in volume” for some of its key product categories, particularly those tied to new residential construction and a double-digit decline in single-family housing starts year-over-year.
The distributor also posted a net income of $18 million for the quarter as compared to a net income of $133 million for the corresponding quarter last year.
According to BlueLinx, the company services approximately 15,000 customers including national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers, and industrial manufacturers.
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The Bottom Line: Sales at BlueLinx fall 39% in the first quarter as profits decrease to $18 compared to a net income of $133 million in the same period a year ago.
What the CEO said: “Despite a decline in demand for building products across our industry since late last year, we worked hard to maintain both our price and cost discipline, resulting in solid margin performance, lower operating expenses and strong operating cash flow,” said Shyan Reddy, president and CEO of BlueLinx.
“BlueLinx remains well-positioned for future growth by leveraging its national scale, deep supplier and customer relationships and fortified balance sheet,” Reddy added.
(Reddy was named as the new president and CEO of BlueLinx in March following the departure of Dwight A.K. Gibson.)
Company Info: Click here for the full first quarter 2023 financial report from BlueLinx.
