National distributor Allied Building Products recorded a 147 percent gain in operating profit last year to $51.1 million even though sales increased only 6 percent, its parent company CRH reported.
The distibutor’s earnings before interest, taxes, depreciation and amortization increased 54 percent to $82.8 million during 2010 from the previous year. Exterior products accounted for 85 percent, while interior products, including wallboard, accounted for 15 percent.
EBITDA as percent of sales grew to 4.8 percent for the year from 3.3 percent, while operating profit as percent of sales more than doubled to 3 percent from 1.3 percent.
“Since 2008, Allied has closed or merged 27 locations, many in smaller markets, and added three locations,” CRH said. “This process has provided an opportunity to evaluate Allied’s market footprint and to position the business for future opportunities. In addition, the business has concentrated on purchasing and transportation initiatives, rationalization of administrative and geographic oversight functions, thereby increasing efficiency, control and profitability. This aggressive operating approach has substantially benefited 2010 operating results.”
The distributor also launched a new product initiative called TriBuilt Materials during 2010. The program is designed to differentiate Allied in the market at the same time building a brand identity.
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