March 30, 2005

Homebuilding fuels growth

Distributor of building materials reports 41% jump in 2004 profits

VANCOUVER

CanWel Building Materials Ltd. reported a big jump in quarterly and annual profits last week as the Canadian homebuilding boom generated solid results for the company’s bottom line.

The Vancouver-based lumber and hardware seller reported it earned $10.5 million or $1.04 a share for 2004.

That compared with a profit of $7.4 million or $1.16 a share for 2003, when the company had fewer shares outstanding.

Annual sales rose 12.5 per cent to $598 million from $531 million in 2003.

For the fourth quarter, CanWel’s profits rose 68.2 per cent to $1.5 million from $879,000.

Three-month sales rose 8.9 per cent to $128 million from $117.5 million.

“Our business continued to show strength in top line results for the quarter and full year,’’ said Tom Donaldson, CanWel’s president and chief executive.

“Revenue growth has continued to strengthen across all regions in Canada as new home construction and home renovation activity remained firm during the fourth quarter.’’

CanWel is a national distributor of building materials, hardware and related products.

At the end of December, the company closed a deal to buy Sodisco-Howden Group Inc. of Montreal, expanding its operations across Canada.

The Canadian Press

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