Continental Profits from Rising Housing Starts

Continental Building Products Inc of Reston, VA has reported fourth quarter net income of US$6.7 million on net sales of US$114.4 million, increases of 125% and 30% respectively over the corresponding period of 2012. The increase in sales was primarily driven by a 17.7% increase in gypsum wallboard sales volume to 632 million sq ft and a 13.8% increase in average wallboard mill net price to US$143.04/MSF. For the full year, on a pro forma basis, Continental generated a net income of US$4.9 million on net sales of US$402.3 million versus a net loss of US$68.7 million on net sales of US$311.4 million in 2012. Wallboard sales volumes increased 13.6% to 2.2 billion sq ft and the average sales price increased 18% to US$145.92/MSF. Ike Preston, Continental’s CEO, said, “As we progressed through the year, rising housing starts provided favorable residential construction activity, our repair and remodel end markets improved, and commercial orders started to show early signs of a recovery. The improvement in our performance reflects the improved demand environment, but is even more reflective of our market leading positions that we have forged in attractive regions throughout the eastern United States.” Continental’s operations were previously part of Lafarge North America before being purchased by Lone Star Funds. Their assets include joint compound manufacturing facilities and wallboard plants in Palatka, FL, Buchanan, NY, and Silver Grove, KY.

Volume 28 issue 7

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