NEWS: Boise Cascade Co. reported Monday that its third-quarter net income fell 33 percent, but its results came in higher than analysts had anticipated. The engineered wood products and plywood company also expressed some optimism about improving demand and its shares jumped in trading.
DETAILS: The Boise, Idaho-based company said that sales in both of its business segments — wood products and building materials distribution — improved during the quarter. It also acquired two plywood plants on the last day of the quarter for $102.0 million that should help it serve its customers in the Southeast.
NUMBERS: The company earned $15.9 million, or 39 cents per share, compared with $23.5 million, or 79 cents per share, last year. Its revenue jumped 15 percent to $878 million from $764.6 million.
Analysts polled by FactSet were anticipating earnings of 30 cents per share on revenue of $839.1 million, on average.
FUTURE: Boise Cascade said that while it expects demand to continue to remain below historical levels for the rest of the year, the housing industry has shown signs of improvement in the U.S. The company said it is optimistic that demand for its products will continue to improve.
The company also said that commodity product pricing was more stable in third quarter than in the first half of the year, but noted that pricing could become volatile in the future. Boise Cascade said it will manage its production levels to meet sales demand, which could result in some of its facilities operating below capacity until demand improves further.
STOCK: Shares jumped $1.73, or nearly 7 percent, to $26.82 by midday, far outpacing the rest of the market's gains.