Construction News: Prices and Profits Down
Tuesday, February 06, 2007
Building material news from the Associated Press: "Due mostly to the slowdown in new home construction, lumber prices have sunk from a peak of about $1,000 per thousand foot board 18 months ago to around $200 per thousand foot board. In addition, prices for oriented strand boards, or OSB, are at a four-year low."From Forbes.com: "Lumber and building materials supplier Louisiana-Pacific Corp. on Tuesday posted a fourth-quarter loss due to feeble demand from home builders in the sluggish U.S. housing market."
"'Fourth-quarter sales declined 40 percent compared to the same quarter a year ago, as levels of building activity dropped to the lowest levels we have seen this decade,' said CEO Rick Frost. 'Weakened demand negatively affected volume and pricing in all of our product lines.'"
"Frost cautioned that the first quarter this year 'looks and feels a lot like last quarter, with lower building activity and depressed prices for our commodity products continuing.'"
From Yahoo Finance: "Building Materials Holding Corporation, a leading provider of construction services and building materials to professional residential builders and contractors, today reported sales for the fourth quarter of 2006 decreased 26% from the same quarter a year ago."
"Robert E. Mellor, CEO, stated, 'Our fourth quarter results reflect the on-going correction of inventory levels which currently overhang the housing market. The rapid deterioration of our markets during the second half of the year has made for a very challenging quarter as homebuilders curtail production while excess inventory is absorbed.'"
Finally, from the Houston Chronicle.com: "Mueller Industries Inc., a maker of copper tubes and fitting used in plumbing and refrigeration, said Tuesday the slumping housing market and lower copper prices led to an inventory write down, sending fourth-quarter profits tumbling."
"The latest quarter included a charge of 26 cents per share to write down inventory that lost value as copper prices fell during the period. Mueller said the slumping housing sector also hurt sales volume."
Labels: Construction Industry, Construction News, Material Costs
