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Tuesday, May 24, 2022

Foundation Building Materials on COVID-19

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Santa Ana-based Foundation Building Materials (NYSE: FBM) expects to post a sales increase for the first quarter but anticipates future negative impact on business as a result of the coronavirus pandemic.

In a Wednesday operational update, the construction materials distributor withdrew full year 2020 guidance issued in February and noted the firm “experienced solid end market activity levels through most of the first quarter.”

It expects first quarter 2020 net sales to be between $520 million to $525 million, up from the $515 million in the first quarter last year.

The company said it has taken steps to increase liquidity and cash flow, including a 50% salary reduction for Chief Executive Ruben Mendoza; furloughing some employees; halting acquisitions; and drawing down $120 million under its revolving credit facility.

It reports first quarter earnings May 12. Shares were up 1.4% in midday trading to $9.19 and a $396 million market cap.

Go here for more updates on how OC companies are responding to coronavirus.

For ongoing, in-depth coverage of coronavirus effects on OC businesses, see the Monday print edition of the Business Journal.

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