Boise Cascade Q3 loss narrows
Boise, Idaho-based Boise Cascade Holdings has posted a $3.7 million net loss for the third quarter ended Sept. 30, compared with a net loss of $5.6 million in the year-ago period. Sales for the quarter totaled $627.98 million, up 5.8% from $593.50 million in the third quarter of 2010.
“New single-family residential construction remained weak during the third quarter; however, we believe we are continuing to gain market share,” said CEO Tom Carlile. “We remain cautious with regard to the overall new residential construction environment and the timing of an eventual recovery in housing starts. We have good liquidity and continue to evaluate acquisition opportunities that add value, add to our market position or help lower our costs. “
Building Materials Distribution (BMD) segment sales were $501.5 million in the third quarter, up 7% from the same quarter a year ago.
Wood Products segment sales in the third quarter were $194.8 million, up 6% from the year-ago quarter.
Boise Cascade expects “below-normal demand for the products we distribute and manufacture until there is a meaningful reduction in the overhang of distressed homes for sale,” according to a company press release.
In other company news, Boise Cascade has announced its intent to purchase the assets of the Stimson Lumber Mill in Arden, Wash. The Stimson Lumber Mill processes pine and cedar into lumber and decking products. The facility will become part of Boise Cascade’s Inland Region.
The details of the transaction were not disclosed, and the company expects the purchase to close around Dec. 31.
“It is Boise Cascade’s intent to operate both the Kettle Falls Lumber operation and the Stimson Lumber Mill, although the operating configuration has yet to be finalized,” said Tom Insko, Inland Region manager. “The combination of the two mills will increase efficiencies and enhance the product mix capabilities of the Inland Region lumber operations.”