UFP Industries turns in a record quarter

UFP Industries reported company record net sales of $1.83 billion for the first quarter of 2021, a 77% increase over first quarter 2020 net sales of $1.03 billion.

Elevated softwood lumber prices contributed to a significant increase in the company’s cost of materials and were responsible for 44% of the 77% increase in net sales. The remaining 33% came from increased unit sales, including 23% from acquisitions and 10% from organic growth, the Grand Rapids, Mich.-based company reported.

UFP Retail Solutions sales jumped 116% to $759 million, including a 56% increase in selling prices, a 19%increase in organic unit sales, and a 41%unit increase resulting from acquisitions, primarily Sunbelt Forest Products. 

Industrial sales were up 75% to $448.9 million in net sales, for the quarter, driven by a 37% increase in selling prices. 

Construction sales increased 47% to $559.5 million, including an 8% increase in unit sales and a 39% increase in selling prices. 

UFPI’s net earnings for the first quarter increased 157% to $104.3 million from net earnings of $40.6 million for the same period a year ago.

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The Bottom Line: High softwood lumber prices help drive overall sales up by 77% as profits jump 157% to $104.3 million in the first quarter.

What the CEO said: UFP Industries is enjoying unprecedented growth as we benefit from strong market conditions and the successful execution of our strategic plans,” saidUFPI CEO Matthew Missad. “We are using our new market-focused structure to target and quickly assimilate acquisitions, better leverage our fixed costs, and reallocate resources to increase capacity efficiently.”

“As a result, we are experiencing strong organic growth in our retail and industrial segments as well as in our site-built and factory-built housing business units.”

Company info: The full first quarter 2021 financial report from UFP Industries is available here.