Falling prices sting UFP Industries
UFP Industries, the building products manufacturer and distributor, reported fourth quarter 2023 sales declined 20% to $1.52 billion from sales of $1.9 billion in the fourth quarter of 2022.
The Grand Rapids, Michigan-based company said fourth quarter sales were impacted by 10% decline in prices along with a 10% decrease in organic sales growth.
Retail sales fell 27% to $505.6 million from the fourth quarter of 2022 due to a 9% decline in selling prices and an 18 percent decline in organic unit sales, the company said.
Construction sales were down 16% for the quarter and reached $511 million.
Earnings from operations sank 26% to $124 in the fourth quarter from nearly $169 million for the same period last year.
Sales for the full year decreased 25% to $7.2 billion following a record 2022 with sales of $9.2 billion.
Full-year retail sales sank 21% to $2.87 billion as construction sales dropped 31% to $2.16 billion.
Earnings from continuing operations saw a 32% slide to $647 million as compared to earnings of $950 million in 2022.
Looking ahead, UFP Industries said that it anticipates lumber prices, which returned to more normalized levels in 2023 after pandemic-inflated highs, will remain at lower levels –based on current supply–and demand and follow more typical seasonal trends.
Some of the key products in UFP Industries portfolio include ProWood treated lumber; Deckorators composite decking; UFP Edge siding, shiplap, and trim; and Outdoor Essentials outdoor living products.
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The Bottom Line: Commodity pricing decreases sting UFP Industries as sales decline 20% and earnings fall 26% in the fourth quarter.
What the CEO said: “As we look to 2024, we expect market conditions to remain challenging in the first half of the year before improving in the second half,” said UFP Industries Chairman and CEO Matthew Missad. “We are committed to make each aspect of our business better as we work toward greater efficiencies, lower costs and more innovative products and services. The team’s commitment to winning contributed greatly to our success in 2023 and positions us well for the future.”
Company info: Click here to read the full fourth quarter 2023 and year-end financial report from UFP Industries.
