Momentum appears strong, but profits remain elusive for Builders FirstSource, the industry’s sole remaining publicly traded chain of lumberyards.
On the positive side of the ledge, the company posted its third straight quarter of sales increases of greater than 20%. But the company’s first-quarter loss was $19.1 million, which narrowed slightly from a loss of $21.1 million in the first quarter of 2011.
CEO Floyd Sherman sees market-share gains for his Dallas-based LBM dealer. “Our sales growth continues to outpace construction activity as actual U.S. single-family housing starts were up only 16.8% compared with the same quarter last year, and U.S. single-family units under construction actually decreased 5.0% over the same period,” he said.