BOISE, ID - Boise Cascade Holdings LLC capitalized on rising lumber pirces and increased demand to post net income of $15.0 million on sales of $733.0 million for the second quarter, reflecting Q2 year-over-year improvements of 782% and 24% respectively.
Like Boise Cascade, many other North American lumber companies have profited from rising lumber prices in recent months, including Weyerhaeuaser, whose Q2 earnings rose eight fold; Ainsworth Lumber, which just posted a 600%-plus Q2 increase; and International Forest Products, which realized a 13% Q2 sales gain.
Boise Cascade noted that U.S. housing improved about 29% in the second quarter, heightening demand for its engineered wood products and plywood.
"Our improved operating results experienced in the first quarter continued into the second quarter," said CEO Tom Carlile. "We are encouraged by the improved operating environment and are cautiously optimistic the improved demand for our products will carry through to the second half of the year."
While Boise Cascade sees signs of an improving housing industry in many regions of the United States, "We expect to continue to experience below historical demand for the products we distribute and manufacture. Industry commodity wood product prices could be volatile in response to operating rates and inventory levels in various distribution channels. We expect to manage our production levels to our sales demand, which will likely result in us operating some of our facilities below their capacity."