Universal Forest Products earns $15.8M in 2Q13
Universal Forest Products (NASDAQ: UFPI) has reported 2013 second-quarter net sales of $738.4 million, a 24.4 percent increase over 2012 second-quarter net sales of $593.7 million, with double-digit gains in each of its five markets.
Second-quarter earnings were $15.8 million, or 79 cents per diluted share, compared to net earnings of $17.5 million, or 88 cents per diluted share for the second quarter of 2012.
Second-quarter earnings in 2012 were enhanced by gains on the sale of real estate totaling approximately $6.9 million ($4.3 million after taxes, or 21 cents per diluted share). The Grand Rapids Township-based lumber company’s adjusted net earnings in the second quarter of 2012, excluding these nonrecurring gains, would have been $13.2 million.
Declining lumber prices
After rising for months, lumber prices dropped 28 percent during the second quarter.
“We are working hard to manage through these changes effectively, and I’m pleased with the results our people were able to achieve in the second quarter,” said CEO Matthew J. Missad. “A drop in lumber prices of this magnitude, especially during the second quarter, typically has an adverse impact on the company’s gross margins and profitability. Through the second quarter, we were able to reduce the impact with strong unit sales in many markets, particularly those tied to new housing and construction.”
Despite the second-quarter decline, lumber prices were still 15 percent higher than the same period of 2012.
“These results reinforce the strength of our balanced business model,” Missad added. “We are not dependent on a single market, which provides us with a competitive advantage over those companies that do not have the benefit of a diverse customer base or that do not serve multiple industries.”