BlueLinx 1Q Profit Plummets 69 Percent
Monday May 9, 1:07 pm ET
BlueLinx First-Quarter Profit Plunges 69 Percent on Interest, Corporate Expenses
ATLANTA (AP) -- BlueLinx Holdings Inc. said Monday that its first-quarter profit fell 69 percent as the former Georgia-Pacific Corp. division assumed its own interest and corporate overhead expenses.
The supplier of lumber and building products said its quarterly income declined to $8.4 million, or 28 cents per share, from $27.3 million, or 91 cents per share, a year ago. The company said its year-ago results were calculated on a pro forma basis, as if the company had been publicly traded since December 2002.
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The company, a former building products distribution division of Georgia-Pacific, was sold to BlueLinx and private investment firm Cerberus Capital Management LP in May. BlueLinx Holdings became a publicly traded company in December last year.
BlueLinx said its year-ago net income amounted to $34 million as a division of Georgia-Pacific, excluding interest and corporate overhead expenses.
The company said gross margin fell to 8.8 percent from 12.2 percent a year ago on higher metal and raw material prices and the use of direct channel distribution for structural products.
Revenue rose 6 percent to $1.35 billion from $1.28 billion last year, driven by a 3.4 percent growth in unit volume and a 2.2 percent growth in price.
BlueLinx shares fell 52 cents, or 4.2 percent, to $11.88 in afternoon trading on the New York Stock Exchange.
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