Plywood Pushes Boise Cascade’s Q2 Income Up 801%
Net income for Boise Cascade increased 801% on a year-over-year (YOY) basis to $302.6 million in the second quarter of 2021. Net sales in the second quarter increased 97% YOY to $2.4 billion, according to Boise Cascade’s quarterly earnings report.
“Our associates in both businesses performed with focus and dedication to capitalize on the strength in residential construction, delivering exceptional results while supporting our customers and supplier partners. Additionally, as a tribute to our associates’ commitment to safety, I’m proud to report we completed one of our safest quarters on record,” Nate Jorgensen, Boise Cascade CEO, said in a prepared statement.
As a manufacturer and distributor, Boise Cascade’s second quarter results were favorably impacted by higher commodity wood products pricing compared to pricing during the second quarter of 2020, at the beginning of the COVID-19 pandemic.
Wood product sales for Boise Cascade, including sales to building materials distribution (BMD), increased 111% YOY in the second quarter to $594.6 million. The increase in sales was primarily driven by higher plywood prices. Higher sales volumes and net sales prices for I-joists and LVL also increased compared to the second quarter of 2020.
Wood products’ segment income increased $196.7 million YOY to $213.8 million in the second quarter, primarily due to higher plywood, LVL, and lumber sales prices, as well as higher LVL sales volumes.
BMD sales increased 92% YOY in the second quarter to $2.2 billion. The overall increase in sales was driven by sales price and volume increases of 83% and 9%, respectively, according to Boise Cascade. BMD segment income for Boise Cascade increased to $206.3 million from $163.1 million in the prior-year period. The improvement in segment income was driven by a gross margin increase of $187.9 million, according to the company.
“As we look to the third quarter, the downward commodity pricing trends experienced in recent weeks have created a challenging environment, and we are focused on mitigating their impact without sacrificing customer service,” Jorgensen said. “The strength of our current balance sheet position allows us to remain focused on executing our strategy, including future organic and acquisition growth opportunities.”