For the third consecutive year since the onset of the housing bust, 84 Lumber Co. reported lower annual sales for 2009, a reflection of the depressed market for new home and commercial construction.

The Washington County building materials supply company, which operates in markets across the nation, reported sales of $1.35 billion last year. That compares with sales of $2.1 billion in 2008, $3.1 billion in 2007 and $3.92 billion in 2006, just before the dawning of the credit collapse. The privately owned company did not release net income figures.

"Demand is down," said Jeff Nobers, vice president of marketing and public relations. "You had a situation in 2009 where total housing starts were less than half of a normal market."

About 95 percent of 84 Lumber's business comes from new housing construction.

Mr. Nobers said a normal construction market would see about 1.1 million new housing starts nationwide. Last year, builders started construction on 553,800 homes, less than a third of the 2006 level.

In response, 84 Lumber has continued to scale back on employees and shut down stores. Today, the company operates 300 stores compared with 319 stores it owned in more than 150 markets this time last year.

"We feel we are positioned properly and have the right stores in the right locations," Mr. Nobers said.

While 2010 business looks promising, due to housing starts stabilizing and the federal tax credits encouraging new and existing home purchases, it may take at least another year for 84 Lumber's sales figures to turn around.

"We are looking at 2011 before we get back to what is normal," Mr. Nobers said. "But the signs are positive."

"Money Q&A" and "Company Town" are featured exclusively at PG+, a members-only web site of the Pittsburgh Post-Gazette. Our introduction to PG+ gives you all the details.