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Builders FirstSource posts $46 million loss

Builders FirstSource reported a net loss of $45.9 million for the second quarter, which ended on June 30, 2008, swinging from net income of $8.4 million for the second quarter of 2007. The Dallas-based pro dealer posted $307.3 million in sales for its second quarter, a 34 percent decline from $465.1 million during the same period last year.

For the first six months of 2008, Builders FirstSource reported sales of $577.7 million, versus $876.2 million last year. The company lost $61.7 million during the first two quarters of the year. Last year, Builders FirstSource posted a profit of $8.6 million for the same period.

Commenting on the financial results, CEO Floyd Sherman said that housing starts in his company’s markets -- primarily the eastern and southeastern United States -- fell 43.1 percent in the second quarter of 2008 compared to the previous year. Builders FirstSource was able to offset the declines, he said, by gaining an estimated 8.2 percent of market share.

The company’s liquidity is “strong at over $210 million,” according to CFO Charles Horn.

In a prepared statement, the company said it “expects the difficult market conditions to negatively affect operating results throughout the remainder of 2008 and 2009.”


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