Boise Cascade Holdings has reported a net loss of US$19m (2010: US$11.3m profit) for the first quarter.
Sales reached US$483.2m 2010: US$ 487.2m), with revenues negatively impacted by depressed demand for its products and a 10% decline in first quarter US housing starts.
The Wood Products division reported sales of US$154.9m, up 5% on a year ago, but a loss of US$500,000.
“The increase in sales was due primarily to increased plywood prices and volumes, higher lumber volumes and higher by-product chip sales,” Boise said.
Engineered wood product prices were up 8%, but lower sales volumes offset that increase.
The building materials distribution business reported sales of US$377, a 3% decrease compared to the same period of 2010.
Boise continues to expect below normal demand due to a decline in unemployment and a reduction in housing supply.
The company will manage its production levels to its sales demand, resulting in below capacity operations.
