Peabody’s Beacon Roofing Supply Inc. has reported $16.9 million in net income for the fourth quarter, compared to $19 million for the same period in 2009.

The lower net income was primarily due to a lower gross margin rate, partially offset by the benefit from reduced expenses, including lower interest expense and income taxes, according to a statement.

"Our fourth quarter and fiscal 2010 results were disappointing as industry and economic conditions remained more challenging than anticipated. We were also up against a year that had significant storm business and record annual earnings. Despite these factors, our total sales declined only 1 percent in the fourth quarter due, in part, to the positive impact from our current year acquisitions," said Robert Buck, chairman and chief executive officer. "In addition, our non-residential roofing and complementary product sales continued to rebound. We started to see some gains in residential business later in the year in a few of our regions that did not benefit from storms last year."

Total sales declined 1.1 percent to $482.6 million in 2010 from $487.7 million in 2009, while existing market (organic) sales declined 3.8 percent. Excluded from the existing market results were seven additional branches in operation at the end of this year compared to Sept. 30, 2009. Residential roofing sales in existing markets decreased 16.8 percent, while non-residential roofing and complementary product sales increased 11.5 percent and 3.3 percent, respectively. Residential roofing sales and gross margin were unfavorably impacted by lower average selling prices in 2010 and less re-roofing activity in post storm-affected regions.

Net income for fiscal 2010 was $34.5 million compared to $52.4 million in 2009, a decline of 34.1 percent. The lower net income was also due to the decline in sales and a lower gross margin rate, partially offset by reduced expenses, according to a statement.