BMHC posts $331.3 million loss
Building Materials Holding Corp. (BMHC), the industry’s fourth largest pro dealer, reported a loss of $331.3 million for its fourth fiscal quarter, which ended on Dec. 31, 2007. This compares to net income of $4.5 million for the same quarter a year ago.
Sales for the San Francisco-based company were $419 million for the fourth quarter, a 30 percent decrease from $597 million in the corresponding period of 2006.
Net loss for the year was $312.7 million, compared to net income of $102.1 million for fiscal 2006. Annual sales declined 29 percent, from $3.2 billion in 2006 to $2.3 billion in 2007.
In a prepared statement, the company announced two “major programs” to consolidate and streamline its business. Both divisions of the company, BMC West and SelectBuild, “are under review, and specific market realignment plans are being prepared for execution in the coming weeks and months,” the statement said. “We are proceeding quickly to close unnecessary facilities and eliminate unneeded assets.”
BMHC stopped short of saying that SelectBuild, its construction services division, will be absorbed back into the company. But the announcement’s second realignment program made reference to “flattening SelectBuild’s management structure” and “accelerated centralization and integration of SelectBuild.”
Newly appointed president and COO Stanley Wilson, who served as president and CEO of BMC West, will now oversee both divisions.
Investors had been anxiously awaiting BMHC’s fourth-quarter results, which were released later than usual. The company did not schedule the customary conference call with analysts to discuss its earnings.