Boise posts Q4 loss
Boise Cascade Holdings has announced a $16.2 million net loss for its fourth fiscal quarter, which ended Dec. 31, 2010. This compares with $33.6 million in profits during the same quarter of 2009. Loss from operations in the fourth quarter of 2010 was $11.8 million, compared with an operational loss of $21.1 million in the same quarter a year ago.
For the full year, BC Holdings reported a net loss of $6.1 million, compared with a $19.0 million loss during fiscal 2009. During fiscal 2010, BC Holdings sold its remaining equity interest in Boise Inc. for net proceeds of $86.1 million and recognized a $25.3 million gain. The company contributed the proceeds to its wholly owned operating subsidiary, Boise Cascade L.L.C.
Net sales for the fourth quarter were $505 million, a 13% increase over $447 million in the corresponding quarter of 2009. The company reported full-year 2010 sales of $2.2 billion. For the previous year, net sales were $2.0 billion.
Building Materials Distribution (BMD) segment sales were $402.7 million in the fourth quarter, up 9% from the same quarter a year ago. Prices for the segment were up approximately 8%, with volumes up about 1%. For the full year of 2010, BMD reported $1.8 billion of sales.
In the Wood Products segment, sales in the fourth quarter were $156.6 million, up 14% from the same quarter a year ago. The sales increase was attributable primarily to 12% higher plywood sales volumes, 7% higher I-joist sales volumes, 12% higher I-joist net selling prices and 13% higher laminated veneer lumber net selling prices. For the full year of 2010, Wood Products reported $687.4 million of sales.
The main factors contributing to the improved financial performance were improved product pricing for engineered wood products and lower per-unit manufacturing costs for plywood, according to the company’s financial report.
In a prepared statement, company CEO Tom Carlile referenced the continued slowdown in residential construction.
“I am proud of how both of our businesses performed last year at the second lowest level of housing starts in over 50 years,” Carlile said. “Our Wood Products and BMD operating segments reported a combined $38.1 million of EBITDA, which was a $66.8 million year-over-year improvement. In addition, we were able to improve our net debt position by $61 million in 2010, and we are well positioned for the year ahead,”
BC Holdings is a privately held company headquartered in Boise, Idaho. Its wholly owned subsidiary, Boise Cascade, L.L.C., is a leading manufacturer of engineered wood products and plywood in North America, as well as a distributor of other building products.