LANGLEY, BC - Hardwoods Distribution Inc., a wholesale distributor of hardwood lumber and related sheet good products posted a profit of $4.4 million for send second quarter ended June 30, an 85.2% increase over the profit for the same period one year ago.
The net earnings growth was reflected in second quarter sales gains, which increased 20.8%.
Hardwoods Distribution, quoting Hardwood Lumber Review, noted that its sales were buoyed by a an average 14% year-over-year increase in hardwood lumber prices and increased prices for hardwood plywood due to the preliminary trade duties imposed in March on Chinese hardwood plywood imported into the U.S.
"We achieved excellent results in the second quarter of 2013 as we responded to growing demand from the U.S. residential construction market," said Lance Blanco, president and CEO of Hardwoods. "The higher sales volumes, together with increased product prices, contributed to our best quarterly sales and EBITDA results in nine years."
Hardwoods Distribution increased its network to 32 distribution centers in the U.S. and Canada by completing the purchase of Olam Wood Products of Leland, NC, for $3 million. About 75% of the company's business is in the U.S. The purchase represents Hardwoods Distribution's first branch in the U.S. East Coast.
"The transaction was well priced and also very timely for us, as it expands our capacity in the US during a rising market," Blanco said.
Have something to say? Share your thoughts with us in the comments below.