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Sep 30, 2021
Boise Cascade Q3 2021 Earnings Report
Reported net income of $91.7 million, or $2.31 per share, on sales of $1.9 billion, impacted by commodity products pricing declines.
Key Takeaways
Boise Cascade Company reported a decrease in net income for Q3 2021 compared to Q3 2020, with net income at $91.7 million versus $103.2 million, despite an increase in sales from $1.6 billion to $1.9 billion. The results were influenced by strong engineered wood and general line product sales mitigating the impact of commodity product pricing declines.
Sales increased by 18% to $1.9 billion compared to the same quarter last year.
Net income decreased by 11% to $91.7 million, or $2.31 per share.
Wood Products sales increased by 37% due to higher plywood prices and increased sales of EWP.
Building Materials Distribution sales increased by 20%, driven by a sales price increase, offset by a sales volume decrease.
Boise Cascade
Boise Cascade
Boise Cascade Revenue by Segment
Revenue by Segment
Wood Products Revenue
CapyFin.comBuilding Materials Distribution Revenue
CapyFin.com Forward Guidance
The company anticipates a favorable demand environment for new residential construction to continue through the end of 2021 and into 2022. They are closely monitoring the impact of COVID-19 variants and potential government mandates, which could affect operations and costs.
Positive Outlook
- Low mortgage rates are expected to continue driving demand.
- Continuation of work-from-home practices supports housing demand.
- Favorable U.S. demographics are creating a demand environment for new residential construction.
- Age of U.S. housing stock supports repair-and-remodel spending.
- Limited home inventory availability will continue to provide a favorable backdrop for repair-and-remodel spending.
Challenges Ahead
- Economic uncertainty due to the pandemic continues.
- COVID-19 variants could cause short-term disruptions.
- Government mandates regarding worker vaccinations or testing may increase costs and strain resources.
- Labor shortages and supply induced constraints may extend build times and limit activity.
- Volatile commodity product pricing and commodity input costs could impact sales and profitability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income