Universal Forest Profits Up
GRAND RAPIDS — Universal Forest Products’ second quarter was marked by 15.4 percent profit growth over the year-ago quarter, to $22.8 million, or $1.20 per diluted share. Year-to-date net earnings were $32 million, or $1.69 per diluted share, a 26.4 percent increase over the first six months of 2004.
Net sales for the quarter were up 5 percent to $779.6 million and up 9 percent to $1.32 billion for the first six months.
“We had another strong quarter of earnings growth and return on investment, which were made possible through the hard work and determination of the people of Universal,” said Vice Chairman and CEO William G. Currie in a prepared statement.
The improved profits were the result of increased unit sales and sales of value-added products, as well as improved results from a framing operation in the western part of the country.
The lumber market had little impact on selling prices and overall sales levels for the quarter.
“We’re pleased with the results in each of our markets, which, with the exception of D-I-Y/retail, saw double-digit unit sales increases,” Currie added.
While D-I-Y/retail remains Universal’s largest market, Currie said the company is seeking greater sales growth from the other three markets to create a more balanced and diverse customer base.
Acquisitions such as that of certain assets from Shawnlee Construction LLC, a Massachusetts framing company, and installation companies Shepardville Construction Inc. and AW Construction LLC strengthen Universal’s position in the framing business.
UFPI raised its annual target range for net earnings growth to 15 percent to 20 percent for 2005.