UFPI Q3 profits soar
Universal Forest Products, Inc. (UFPI) reported third quarter 2019 net sales decreased 4% to $1.16 billion from sales of $1.12 billion in the third quarter 2018.
The Grand Rapids, Mich.-based company, which will soon change its name to UFP Industries, Inc., said sales were impacted by lower lumber selling prices, including selling price decrease of 11%.
But net earnings attributable to the company soared 26% to $51.6 million for the third quarter compared to net earnings of $41.2 million for the third quarter in the prior year.
Retail sales fell 1% to $437 million in the third quarter. A sales increase of 10% was offset by selling prices that were 11% lower. Organic growth was responsible for all of the unit sales increase and was largely driven by strong sales of Deckorators decking and deck accessories and new product sales.
Industrial sales fell 6% to $332.5 million for the quarter as a sales increase of 4% was offset by lower selling prices of 10%.
Construction sales were down 5% to $414.4 million due to a 13% decrease in selling prices and an 8% increase in overall unit sales. Within UFPI’s construction division, commercial sales growing 15%, residential housing sales rose 6% and manufactured housing sales were up 1%.
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The bottom line: While material prices take a bite out of sales, profits increased 26% for the third quarter 2019.
What the CEO said: “Our record results are the reflection of the hard work of our employees and the successful execution of our strategies to grow and improve our business. Our growth in organic unit sales was very strong, and we continue to successfully add new, value-added products and services to our offerings that are improving our profitability,” said CEO Matthew Missad.
“While we are pleased that so many of our operations are performing so well, we know we have operations that can do much better given our culture of continuous improvement, and we have been making changes to improve their performance. This summer, we announced a new organizational structure beginning Jan. 1, 2020, that will allow for a more specialized and consistent sales approach, more efficient use of resources and capital, and quicker introduction of new, value-added products and services. I’m happy to say we have already made great progress toward the reorganization, and our employees are very excited about the new UFP Industries and the new business and career opportunities that are being created.”
Company info: The full third quarter 2019 report from Universal Forest Products, Inc. can be read here.
The Grand Rapids, Mich.-based company, which will soon change its name to UFP Industries, Inc., said sales were impacted by lower lumber selling prices, including selling price decrease of 11%.
But net earnings attributable to the company soared 26% to $51.6 million for the third quarter compared to net earnings of $41.2 million for the third quarter in the prior year.Retail sales fell 1% to $437 million in the third quarter. A sales increase of 10% was offset by selling prices that were 11% lower. Organic growth was responsible for all of the unit sales increase and was largely driven by strong sales of Deckorators decking and deck accessories and new product sales.
Industrial sales fell 6% to $332.5 million for the quarter as a sales increase of 4% was offset by lower selling prices of 10%.
Construction sales were down 5% to $414.4 million due to a 13% decrease in selling prices and an 8% increase in overall unit sales. Within UFPI’s construction division, commercial sales growing 15%, residential housing sales rose 6% and manufactured housing sales were up 1%.
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The bottom line: While material prices take a bite out of sales, profits increased 26% for the third quarter 2019.
What the CEO said: “Our record results are the reflection of the hard work of our employees and the successful execution of our strategies to grow and improve our business. Our growth in organic unit sales was very strong, and we continue to successfully add new, value-added products and services to our offerings that are improving our profitability,” said CEO Matthew Missad.
“While we are pleased that so many of our operations are performing so well, we know we have operations that can do much better given our culture of continuous improvement, and we have been making changes to improve their performance. This summer, we announced a new organizational structure beginning Jan. 1, 2020, that will allow for a more specialized and consistent sales approach, more efficient use of resources and capital, and quicker introduction of new, value-added products and services. I’m happy to say we have already made great progress toward the reorganization, and our employees are very excited about the new UFP Industries and the new business and career opportunities that are being created.”
Company info: The full third quarter 2019 report from Universal Forest Products, Inc. can be read here.