BMC Announces Record Q3, Component Sales Up 3.1%
Originally published by: HBS Dealer — November 3, 2020
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Fueled by a strong residential construction market and high lumber prices, BMC Stock Holdings reported a record third quarter as net sales climbed 13.1% to $1.09 billion compared to sales of $964.2 million for the same period a year ago.
The Raleigh, N.C.-based pro dealer giant also posted a net income of $44.9 million for the third quarter, soaring 33.6% from a net income of $33.6 million in the previous third quarter.
Sales for the quarter were primarily driven by growth from price inflation of 10%, acquisitions of 3.5%, and core organic growth of 0.6%. The increases were partially offset by a decrease of 1% from closed facilities, the company said.
During the quarter, BMC announced it was merging with Builders FirstSource. Last week, Builders FirstSource reported that its net sales increased 15.9% to $2.3 billion for the third quarter.
The merger between the two companies is expected to close in late 2020 or early 2021.
The Bottom Line: BMC profits jump 33.6% to $44.9 million as sales rise 13.1% to $1.09 billion.
What the CEO said: “These strong results were driven by strong demand in our single-family homes and pro remodel segments and higher lumber pricing, combined with solid execution against our four-pillar strategy, including our BMC Operating System-led productivity and cost savings initiatives. The double-digit sales growth led to sales in the third quarter exceeding $1 billion for the first time in our company’s history,” said Dave Flitman, president and CEO of BMC.
Company info: Click here to read the full third quarter financial report from BMC Stock.
