Mr. Sherman continued, "For the current quarter, the competitive pricing pressures we had seen throughout the first nine months of 2010 were still present, but we have recently seen signs that suggest pricing discipline may be returning to the market. Fourth quarter gross margins were 19.1 percent, as compared to 19.7 percent in the fourth quarter of last year. For the year, we felt the negative impact of the commodity price volatility seen during the first half of 2010, as gross margins declined to 18.8 percent for the year, a 2.2 percentage point decrease from gross margins of 21.0 percent in 2009. We were able to partially mitigate this margin pressure by continuing our focus on expense control, management of headcount, and flexing capacity where appropriate. We have done this while maintaining a presence within all of our markets. We have also become a more efficient company, and feel we are well positioned to respond to any increase in building activity."Commenting on the Company's results, Chad Crow, Builders FirstSource Senior Vice President and Chief Financial Officer, added, "Adjusted EBITDA in the current quarter was negative $12.5 million, down slightly from the negative $12.2 million in the fourth quarter of 2009, on $6.9 million less sales. Adjusted EBITDA for 2010 was negative $43.6 million as compared to negative $35.1 million for 2009. Although sales were up year-over-year, competitive pricing pressure, combined with extreme volatility in commodity prices during the first half of the year, negatively impacted margins. We were able to partially offset this negative impact through SG&A reductions."
Builders FirstSource Reports Fourth Quarter And Fiscal Year 2010 Results
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