Sales, including sales to its Building Materials Distribution (BMD) segment, decreased $24.7 million, or 8%, to $292.3 million for the three months ended December 31, 2015, from $317 million for the three months ended December 31, 2014. The decrease in sales was driven primarily by decreases in plywood and lumber sales prices of 19% and 16%, respectively, and decreases in plywood and lumber sales volumes of 3% and 9%, respectively. The declines in plywood and lumber volumes resulted from production curtailments in the 4Q 2015 in response to market conditions.
For the year ended December 31, 2015, sales, including sales to BMD, decreased $34.9 million, or 3%, to $1,282.1 million from $1,317 million for the year ended December 31, 2014. Plywood and lumber sales prices decreased 7% and 14%, respectively, and plywood and lumber sales volumes decreased 1% and 3%, respectively.
"Our Wood Products' operating results were negatively impacted by the continued erosion in plywood and pine lumber pricing during 2015. Plywood markets were very challenging in the 4Q 2015 and, disappointingly, pricing has eroded further as we begin 2016. With the strength of the U.S. dollar attracting imports and the planned ramp up of a new plywood mill this spring in Mississippi by a private 2 equity firm, the oversupply situation is likely to continue until demand improves seasonally or domestic production declines," commented Tom Corrick, CEO.
"We expect the housing recovery to continue in 2016, with U.S. starts for the year projected to be between 1.20 and 1.25 million. Increased housing construction should provide a favorable backdrop for engineered wood products in our manufacturing business, as well as revenue and earnings growth in our distribution business."
Boise Cascade Company is one of the largest producers of plywood and engineered wood products in North America and a leading U.S. wholesale distributor of building products.
