BlueLinx reports sales gains, but loss widens
BlueLinx is continuing to implement cost savings and profit-improving initiatives as it looks to expand its specialty products business.
The company reported seond-quarter revenues of $604.6 million, up 16.9% from $517.0 million in the same quarter last year. However, the Atlanta-based distributor's net loss widened to $22.3 million, compared with a net loss of $3.7 million in the same quarter last year.
"The building products market remains highly competitive and volatile," said BlueLinx executive chairman Howard Cohen. "However, the outlook for new residential construction continues to suggest favorable opportunities for BlueLinx."
Declining prices for structural wood products generated lower gross margins for the company in the second quarter. The company's second half objective is to position BlueLinx for near-term growth and positive operating profits, Cohen said.
BlueLinx operates 55 distribution centers in the United States, offering more than 10,000 products.