Beacon Roofing Supply reports 20.6% sales drop
Beacon Roofing Supply Inc. announced that its first quarter sales declined 20.6% to $367.7 million in 2009 from $463.3 million in 2008.
Residential roofing sales decreased 26.2% while non-residential roofing and complementary product sales declined 15.5% and 13.5%, respectively. All three major product lines were impacted by economic conditions this year and lower levels of new construction and remodeling. Residential roofing sales were also up against a 58.5% increase in 2008, which resulted from higher average prices and strong re-roofing activity in storm-affected regions, especially from Hurricane Ike in Texas.
The company's net income for the first quarter was $7.8 million compared to $18.6 million in 2008, down 58.0%. Diluted net income per share declined 58.5% to 17 cents compared to 41 cents in 2008.
"We are up against robust prior year results and in a very challenging economic environment. Last year's storm business and inflation benefit had a substantial positive impact on both our sales and margin. Although our income was below last year, it met our first quarter expectations. Our continued focus on cost controls and working capital management also enabled us to increase our cash by $27 million in the quarter," said Robert Buck, chairman and CEO.
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
