Universal Forest Products reports record Q2 earnings
Universal Forest Products, Inc. (UFPI) reported second quarter net sales fell 4% to $1.24 billion from sales of $1.29 billion for the same period a year ago.
UFPI said sales for the quarter were impacted by lower lumber prices and selling prices falling by as much as 9%.
But the company also reported record company net earnings of $54.5 million during the second quarter, a 24% increase
The company’s retail division record $521 million in gross sales, down 4% compared to the second quarter of 2018. A unit sales increase of 6% was offset by selling prices that were 10 percent lower. Organic growth was responsible for all of the unit sales increase and was largely driven by sales of Deckorators decking and deck accessories.
Industrial gross sales increased 3% to $357.3 million while construction gross sales were down 10% to $386.2 million for the quarter. UFPI said that its construction division faced a 14% decrease in selling prices and a 4% decrease in overall unit sales during the period.
Unit sales growth to commercial and residential housing customers each grew 5% and manufactured housing customers grew 1%.
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The bottom line: Despite lower lumber prices and lower sales, UFPI sees profits rise 24% to $54.5 million for the second quarter.
What the CEO said: “The employees of Universal continue to do a great job growing unit sales, improving our company’s gross profit per unit, and generating robust cash flow despite pressures from rising labor costs and significant fluctuations in the lumber market,” said CEO Matthew Missad. “Our strong results are evidence that we are pursuing the right strategies to make our business more efficient and grow through new, value-added products.”
“I am pleased we experienced such strong growth with new products in our retail and industrial markets,” added Missad. “We will continue to closely manage our SG&A expenses, including those needed to grow our value-added products, so that we can better leverage these expenses as we grow revenue.”
Company info: The complete UFPI second quarter 2019 sales and earnings report can be read here.
UFPI said sales for the quarter were impacted by lower lumber prices and selling prices falling by as much as 9%.
But the company also reported record company net earnings of $54.5 million during the second quarter, a 24% increase
The company’s retail division record $521 million in gross sales, down 4% compared to the second quarter of 2018. A unit sales increase of 6% was offset by selling prices that were 10 percent lower. Organic growth was responsible for all of the unit sales increase and was largely driven by sales of Deckorators decking and deck accessories.Industrial gross sales increased 3% to $357.3 million while construction gross sales were down 10% to $386.2 million for the quarter. UFPI said that its construction division faced a 14% decrease in selling prices and a 4% decrease in overall unit sales during the period.
Unit sales growth to commercial and residential housing customers each grew 5% and manufactured housing customers grew 1%.
###
The bottom line: Despite lower lumber prices and lower sales, UFPI sees profits rise 24% to $54.5 million for the second quarter.
What the CEO said: “The employees of Universal continue to do a great job growing unit sales, improving our company’s gross profit per unit, and generating robust cash flow despite pressures from rising labor costs and significant fluctuations in the lumber market,” said CEO Matthew Missad. “Our strong results are evidence that we are pursuing the right strategies to make our business more efficient and grow through new, value-added products.”
“I am pleased we experienced such strong growth with new products in our retail and industrial markets,” added Missad. “We will continue to closely manage our SG&A expenses, including those needed to grow our value-added products, so that we can better leverage these expenses as we grow revenue.”
Company info: The complete UFPI second quarter 2019 sales and earnings report can be read here.