Peabody-based Beacon Roofing Supply Inc. has reported a net loss of $6.5 million for the second quarter, compared to a $2.4 million loss for the same period last year.
The higher net loss was due to the decline in sales and a lower gross margin rate, partially offset by lower expenses, according to a statement.
Net income for the first half of the year was $1.4 million, compared to $16.2 million in 2009. The lower net income was due to the decline in sales and a lower gross margin rate, partially offset by lower expenses.
In the first half of 2010, sales declined 16.6 percent to $653.1 million in 2010 from $782.6 million in 2009.
"Our second quarter results fell short of our expectations, although the rate of our sales decline was much less in the second quarter than in the first quarter. We began to see a stronger business trend in most regions late in the quarter and into the third quarter," said Robert Buck, the company’s chairman and chief executive officer. "We also faced strong prior year results, which benefited from storm business. However, we reduced our expenses, made an early payment on our debt, became more active with our acquisition program, and saw some encouraging signs in the economy, all of which should help set us up for a stronger second half."
In the second quarter, sales declined 10.6 percent to $285.4 million in 2010 from $319.3 million in 2009. Residential roofing sales decreased 17 percent while non-residential roofing and complementary product sales declined 4.4 percent and 0.6 percent, respectively. All three major product lines were impacted by tougher winter weather and economic conditions this year and by continued low levels of new construction and remodeling.





