National Lumber Cites Expansion as Profits Drop

High costs of aggressive expansion at National Lumber & Supply Inc. resulted in a 50% drop in third quarter profits, the company reported Thursday.

The Fountain Valley-based lumber and hardware chain posted net income of $125,369 for the third quarter ended Oct. 31, compared with $255,159 for the year-ago quarter. Revenues for the period were virtually unchanged, at $33.8 million, compared with $33.4 million during the year-earlier quarter.

Net income during the first nine months fell 19%, to $805,866, from $994,286 during the same period a year earlier. But nine month revenues were ahead to $102 million, from $96 million a year earlier.