Beacon Roofing profit up nearly 60 percent

Beacon Roofing Supply Inc. said today that its fiscal third-quarter profit jumped nearly 60 percent as it passed along price hikes, held down costs of some goods and sold more high-margin residential roofing products, all of which offset sharply higher fuel costs.

For the three months ended June 30, net income jumped to $18.3 million, or 41 cents per share, compared with $11.5 million, or 26 cents per share, in the year-earlier quarter.

Analysts polled by Thomson Financial expected earnings per share of 31 cents.

Revenue climbed 6 percent to $514.6 million from $484.9 million, topping analysts' estimate of $480.3 million.

Beacon said in a statement that the quarter's improvement stemmed mostly from its ability to pass through increases in residential shingle prices as they were announced by vendors.

"However, cost of goods sold did not increase at the same time or rate due to favorable buying programs and the lower-cost inventory on hand before the price increases."

Additionally, there was a 13 percent increase of higher-margin residential roofing products in Beacon's sales mix.

Chief Executive Robert Buck, in a statement, said he is seeing "growth in residential roofing sales after a prolonged period of softness in that market."

Shares of Beacon Roofing rose 84 cents, or 6.2 percent, to $14.38 in morning trading. The stock earlier hit a new year high of $15.35. It has ranged between $6.70 and $14.96 over the past year. (AP)