UFP Industries reports record Q3 sales
UFP Industries (UFPI) reported third quarter sales jumped 28% to a company record $1.49 billion as compared to third quarter 2019 sales of $1.16 billion.
The Grand Rapids, Mich.-based company attributed the increase to a 20% percent increase in pricing and an 8% increase in units sold.
UFPI’s reported retail sales soared 76% over the previous third quarter to $700.5 million Unit sales increased 34%, with higher selling prices increasing sales by 42%. This includes sales from Deckorators decking, Dimensions Home and Decor, ProWood, and Outdoor Essentials Fence, Lawn and Garden. All units reported a sales increase of 28% or better with Deckorators seeing a 50% rise.
Unit sales in the retail segment’s ecommerce unit, which include sales through large online retailers, grew 94%.
Industrial sales rose 4% to $282.1 million for the quarter. Unit sales decreased 2% but higher selling prices increased sales by 6%.
Construction segment sales edged up just 0.4% to $447.1 million due to a 9% decrease in unit sales and a 9% increase in selling prices. Factory built sales rose 7%, concrete forming sales declined 2%, site built sales fell 8% and commercial sales decreased 37%.
UFPI also reported that net earnings for the quarter soared by 50% to $78.86 million from third quarter 2019 net earnings of $52.58 million.
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The Bottom Line: Third quarter profits jump 50% to $78.86 million as the company reports record sales of $1.49 billion.
What the CEO said: “At the beginning of the pandemic, no one in the industry predicted the growth we’d see in our Retail segment,” said CEO Matthew Missad said. “Although UFP Retail Solutions has benefited from higher lumber prices and the spike in consumer demand during the past several months, it was well-positioned for improvement even before the pandemic began.
Company info: UFPI’s full third quarter financial report can be accessed here.