BMHC to shutter some California operations
Industrial Distribution staff -- Industrial Distribution, 5/16/2008 7:17:00 AM
Building Materials Holding Corp. plans to shutter the millwork and building materials distribution facilities of its BMC West division in Merced and Bakersfield, Calif.It’s the second shutdown in as many days for the San Francisco-based building supplies distributor, which announced plans to close the curtains on a portion of its Arizona building operation May 15, laying off 180 workers.
The closures were prompted by BMHC’s dismal first-quarter results, which saw quarterly sales plummet 37 percent to $355 million and a net loss of $33.9 million.
The company said it will serve the Merced and Bakersfield markets from its BMC West operations in Modesto and Fresno, Calif. The existing sales force will remain in place, but about 30 workers will be laid off within the next sixty days.
“The difficult decision to close our facilities in Merced and Bakersfield is a necessity based on today's challenging business environment and weakness in the housing markets in California's Central Valley," president and CEO Stanley Wilson said. ”Single-family housing permits in the Central Valley markets we serve have fallen sharply, from 4,905 in the first quarter of 2007 to only 1,877 in the first quarter of 2008. At these greatly reduced volumes, we are no longer able to justify the costs associated with operating these two facilities.”
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