Increased sales of I-joists and laminated veneer lumber (LVL) boosted performance in Boise Cascade’s wood products division during the third quarter.

I-joists and LVL volumes were up 13% and 23% respectively, helping the division record a 6% increase in sales to US$194.8m. The increase partially offset a 7% decrease in plywood prices and a fall in plywood volumes.

Earnings before interest, tax, depreciation and amortisation (EBTDA) were up 22% to US$5.8m. The earnings increased due to lower per-unit engineered wood product (EWP) conversion costs, lower per unit raw material costs, as well as higher sales volumes and lumber prices.

Boise’s building materials distribution division’s sales were up 7% on a year ago, with volumes and prices growing 5% and 2% respectively.

Total group EBTDA were US$10.6m, while net losses of US$3.7m were recorded.

“We expect to experience below normal demand for the products we distribute and manufacture until there is a meaningful reduction in the overhang of distressed homes for sale,” it said.

“Industry commodity wood product prices could be volatile in response to operating rates and inventory levels in distribution channels. We expect to manage our production levels to our sales demand, which will likely cause us to operate our facilities below their capacity.”