Builders FirstSource Reports Best Operating Performance Since 2007
Builders FirstSource chief executive officer Floyd Sherman
said the company’s near break-even adjusted EBITDA was its best operating
performance since the third quarter of 2007. Could this be a signal of
more positive news for the residential construction industry?
“We finished the current quarter with sales of $206.4 million, down just
2.4 percent compared to sales of $211.5 million in the second quarter
of 2010,” says Sherman. “While U.S. single-family housing starts and average
commodity prices were down 13.1 percent and 20.8 percent, respectively,
over this same time period, our sales volume was up slightly, which we
believe is indicative of significant market share gains during the quarter.”
But the company acknowledges that challenges still persist.
“Despite our improved results, challenges still persist in the housing
industry, as the seasonally adjusted annual rate for U.S. single-family
housing starts in June 2011 was 453,000, which was basically flat when
compared to June 2010,” says Sherman. “However, for the current quarter
actual U.S. single-family housing starts were down 13.1 percent, as compared
to the second quarter of 2010. We also saw a similar level of decline
in actual U.S. single-family units under construction during the quarter,
as they decreased 16.7 percent from the second quarter of 2010.”
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