Building Materials Holding Corp. to shutter part of Arizona building operation

Industrial Distribution staff -- Industrial Distribution, 5/15/2008 8:05:00 AM

Building Materials Holding Corp. will shutter a portion of its Arizona building operation, laying off 180 workers.

It’s the first of a series of closures the San Francisco-based building supplies distributor hopes will save $25 million a year after it posted dismal first-quarter results.

Quarterly sales plummeted 37 percent to $355 million, leading to a net loss of $33.9 million, compared with $5 million during the first quarter of 2007.

BMHC said it will close the Tucson division of its SelectBuild Arizona residential framing and concrete business July 18, affecting 180 of the 700 workers that will be laid off in the closures.

“The difficult decision to discontinue our residential framing and concrete operations in Tucson is a necessity based on today's challenging business environment and weakness in the Tucson housing market,” president and CEO Stanley Wilson said. “Housing permits in the Tucson market have fallen sharply, from 1,349 in the first quarter of 2007 to only 738 in the first quarter of 2008.”

SelectBuild Arizona will complete all pending contracts before the closure and provide ongoing service for prior contracts from its Phoenix SelectBuild Arizona business, which will continue its framing and concrete operations.

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