At Universal Forest Products, an historic quarter
With growth from independent and big box retailers, Universal Forest Products reported its best-ever quarter when it comes to net earnings and net sales.
The Grand Rapids, Michigan-based forest products company reported second-quarter net sales of $872 million, up 4% from $838 million in the same quarter last year. Net earnings increased 27% to $34.2 million.
Sales in retail and construction markets increased 7.5% and 6.5%, respectively, over the same period last year.
According to UFPI CEO Matthew Missad, the growth came despite lower industrial production in the U.S. and a strong U.S. dollar that adversely affected the company's industrial business during the second quarter.
Recently announced acquisitions -- Idaho Western in Nampa, Idaho; and Tampa, Florida-based Robbins Manufacturing Co. -- are expected to add $100 million in annual gross sales, the company said.
In the retail business, UFPI said it saw growth from independent and big box retailers, the latter of which saw healthy increases in comparable store sales in their most recently reported quarters.
Looking ahead, UFPI expects "healthy demand through the building season, barring adverse weather conditions and other unforeseen events."
In the construction sector, UFPI saw unit sales increases of 10% in its residential construction business and 4% in commercial construction. The company has benefited from rising U.S. housing starts in both site-build and factory-built housing, and a strong increase in commercial construction spending.
