Universal Forest Products has net loss of 2 million

October 16, 2008
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Webster to become president/COO in January.

Universal Forest Products Inc. has announced a net loss of $2 million for the third quarter, resulting from charges of $6.2 million related to asset impairments and idled facilities. Net sales were almost $611 million, compared to $678 last year.

The company said "continued deterioration in housing and unprecedented turmoil in the financial markets" helped determine those third quarter results.

President/CEO Michael B. Glenn said that without the charges, the company would have had net earnings of nearly $3 million for the quarter.

“I’m pleased with the strength of our balance sheet, which we’ve maintained by focusing on accounts receivable and inventory, resulting in strong cash flow,” he said, adding that Universal is "doing the right things to take advantage of near-term opportunities while positioning the company well for a brighter tomorrow."

The company's Do-It-Yourself/retail sales, the largest segment of its business, declined almost 6 percent compared to the same quarter a year ago. Industrial packaging/components sales were up 5.4 percent.

Site-built construction lumber sales were down 24 percent compared to a year ago, while manufactured housing sales were down 22.5 percent.

Net earnings through the third quarter were a little over $5 million, compared to $32 million by this point last year.

Glenn also announced that Pat Webster, president of the company's Western Division, will become president and chief operating officer of the corporation effective Jan. 1. Webster, who has been with the company 24 years, will be succeeded in the Western Division by Dick Frazier, a former regional vice president.

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