, a building material supplier, said its first-quarter earnings fell 17.7% from the year-ago period.
The Nashville, Tenn.-based company earned $83.7 million, or 79 cents a share, in the quarter, compared with $101.7 million, or 91 cents a share, a year ago. Income from continuing operations was $84.9 million, or 80 cents a share, in the quarter, compared with $105.4 million, or 95 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of $53.7 million, or 52 cents a share in the most recent quarter.
First-quarter revenue rose 2.6% from a year ago period to $678.3 million as against analysts' expectation of $621.5 million.
"While OSB pricing was lower by 18% compared to Q1 of 2005, the price levels for most of our other products were higher, partially to offset raw material cost increases. Raw materials costs did moderate from the high level experienced last quarter, but with the recent volatility of oil pricing, controlling and predicting these costs will be an ongoing challenge," the company said.
First-quarter operating income was down 29.9% from a year-ago period to $116.3 million. Operating margin for the quarter declined 792 basis points to 17.2%.
By segment, first-quarter revenue from oriented strand board segment fell 4.5% from a year ago period to $397.6 million. Revenue from siding segment was up 26.5% to $120.7 million. Revenue from the engineered wood products segment rose 2.8% to $112.4 million and revenue from other segments increased 11.2% to $47.6 million.
The stock was up $1.29, or 4.9%, at $27.83 Wednesday.
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