Sales and earnings surge at UFP Industries

UFP Industries posted sales of $1.39 billion for the fourth quarter 2020, increasing 40% from sales of $998 million in the fourth quarter 2019.

The Grand Rapids, Mich.-based company said it realized a 15% increase in unit sales and a 25% increase in lumber prices during the period.

UFPI’s Retail Solutions division saw sales spike 76% to $505.2 million in the quarter, due to a 38% rise in unit sales and a 38% climb in selling prices. All business units in the division experienced double-digit unit sales increases, including Deckorators (up 80%), Outdoor Essentials (up 64%), Home & Decor (up 38%), UFP Edge (up 27%), and ProWood (up 25%).

Sales in the UFPI’s Industrial division increased 25% to $309.1 million as sales in its Construction division ascended 24% to 508.3 million.

For the full year, UFPI reported that sales moved ahead 17% to $5.15 billion due to a unit sales increase of 6% and an increase in lumber prices of 11%. This is the first time that UFPI has broken the $5 billion sales mark, the company said.

UFPI reported net earnings of $64.8 million for the fourth quarter, which is more than a 67% rise from net earnings of $38.7 million in the previous fourth quarter.

For the full year, UFPI reported that net earnings increased more than 39% to $254 million from net earnings of $182.4 in the previous year.

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The Bottom Line: UFPI profits surge ahead 67% to $64.8 million in the fourth quarter as sales jump 40% during the period.

What the CEO said: “Despite the disruptions that marked 2020, our reorganized structure allowed our employees to remain focused on bringing new value-added products to market faster and using capital more efficiently, while supporting more rapid growth at a lower incremental cost,” said CEO Matthew Missad. 

Company info: UFPI’s full fourth quarter 2020 and year-end report is available here.