This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Boise Cascade Posts Jump in Profit

Boise Cascade (BCC - Get Report) posted a jump in third-quarter profit, helped in part by a one-time gain and a jump in plywood sales, but the company provided a mixed fourth-quarter outlook.

The Idaho-based forest products company earned $32.9 million, or 48 cents a share, compared with $8.5 million, or 9 cents a share, in the prior-year quarter. Included in the current-quarter earnings was a $2.9 million one-time tax benefit, or 5 cents a share, from a favorable tax court ruling, the company said.

Before items, the company would have earned $30 million, or 43 cents a share. Analysts were calling for 42 cents a share. On Oct. 8, the company, which is in the midst of acquiring OfficeMax (OMX), had upped its internal quarterly guidance to earnings of 40 cents to 44 cents a share.

Total sales were $2.1 billion, compared with $1.9 billion in the year-ago period. Revenue in the company's office business was $934 million, up from $905 million in the third quarter 2002, and operating income in the segment was $31 million, from $29.8 million last year.

In its building segment, sales rose to $828 million, from last year's $693 million. The unit had an operating profit of $56.4 million, compared with the prior year's $14.5 million. Boise Cascade said high housing starts, a compressed building season and low inventories resulted in increases in wood product prices during the quarter.

The company also said average plywood prices increased 28% from a year ago, while lumber prices fell 5%. As a result, plywood unit sales volume rose 8% year over year, while lumber volume fell 9%.

At the company's paper unit, operating income was $200,000, down from $17.2 million a year ago, due to lower unit sales volume and higher unit manufacturing costs. Sales were up modestly at $474 million from $459 million a year ago. Boise Cascade noted that average paper prices were flat from a year ago and that combined energy and chemical unit costs rose 5%, while fiber costs increased 7%.

Looking to the fourth quarter, the company expects year-over-year same-location sales in its office segment to stay positive. However, the company said the building products markets are expected to "weaken seasonally." As a result, Boise Cascade sees its building segment posting lower income in the fourth quarter than in the third quarter.

The paper market is seen being "lackluster," the company said, and it expects similar performance as the third quarter in the fourth quarter.

Analysts are calling for earnings of 19 cents a share in the fourth quarter. The company earned 5 cents a share a year ago.

Shares of the company were down fractionally at $27.99 Tuesday morning.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BCC $27.57 4.40%
AAPL $110.72 -0.53%
FB $92.40 -0.43%
GOOG $642.24 -0.50%
TSLA $231.83 -4.00%


Chart of I:DJI
DOW 16,912.29 +122.10 0.73%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,791.1520 +42.7910 0.90%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs