Stock Building Supply Layoff
Tuesday, January 23, 2007
From The News & Observer: "Stock Building Supply, one of the nation's largest building-material suppliers, is cutting 1,500 jobs as the U.S housing slump depresses sales and profit."
"Raleigh-based Stock said in November that it was cutting 2,000 jobs. The latest round of layoffs was announced Monday by the company's British parent, Wolseley Plc, which also is closing 22 Stock branches and cutting 500 jobs at its Ferguson plumbing division, which is headquartered in Virginia."
"Officials blamed the company's worsening financial condition on builders starting fewer new houses and a decline in lumber prices."
"'We've responded swiftly to the challenging market conditions as a significant amount of our business is in residential construction,' Stock vice president of finance Jim Major said in a prepared statement."
"Analysts said the housing decline appears to be slowing, but nobody will know for certain if there will be a rebound until the traditionally strong spring selling season begins."
"'The jury is still out,' said Kevin Lapwood, an analyst at Seymour Pierce in London. New home sales in the U.S. appear 'to be leveling out, but there may be some more pain before there's gain,' he said."
"Declining construction during the five months that ended in December reduced demand for lumber and structural panels, which make up 45 percent of Stock's revenue, the company said. Lumber prices have fallen 22 percent, and panel prices are down 35 percent."
"Raleigh-based Stock said in November that it was cutting 2,000 jobs. The latest round of layoffs was announced Monday by the company's British parent, Wolseley Plc, which also is closing 22 Stock branches and cutting 500 jobs at its Ferguson plumbing division, which is headquartered in Virginia."
"Officials blamed the company's worsening financial condition on builders starting fewer new houses and a decline in lumber prices."
"'We've responded swiftly to the challenging market conditions as a significant amount of our business is in residential construction,' Stock vice president of finance Jim Major said in a prepared statement."
"Analysts said the housing decline appears to be slowing, but nobody will know for certain if there will be a rebound until the traditionally strong spring selling season begins."
"'The jury is still out,' said Kevin Lapwood, an analyst at Seymour Pierce in London. New home sales in the U.S. appear 'to be leveling out, but there may be some more pain before there's gain,' he said."
"Declining construction during the five months that ended in December reduced demand for lumber and structural panels, which make up 45 percent of Stock's revenue, the company said. Lumber prices have fallen 22 percent, and panel prices are down 35 percent."
Labels: Construction Industry, Construction News
