Universal Forest Products' 3Q up 13.7 percent over last year
But Canadian government duties on aluminum imports from China hurt profits.
Universal Forest Products, Inc. (Nasdaq: UFPI) released third-quarter results yesterday afternoon, showing net sales of $533.4 million, an increase of 13.7 percent over net sales in the third quarter of 2011.
The company also announced today that its board has approved a semi-annual dividend payment of $0.20 per share. The dividend is payable on December 15, 2012, to shareholders of record on December 1, 2012.
“Sharing our success with the people who helped us achieve it gives us great reward and pride,” said UFPI Chairman William G. Currie in an announcement. “Whether it’s by providing compensation and opportunity for employees, respect and recognition for those who built this company or dividends to those whose investment are making our growth and success possible, we are honored to reward those who are critical to our company and our future.”
UFPI reported net earnings were $4.2 million, or 21 cents per diluted share, compared to net earnings of $5.6 million, or 29 cents per diluted share, in the same period of 2011, and reflect a one-time, pre-tax charge of $2 million for a loss contingency associated with duties being assessed by the Canadian government on imports from China to Vancouver, British Columbia.
CEO Matthew J. Missad said UFPI “kept an eye on our expenses and continued to diversify via new products, new markets and with new customers. I believe we’re doing all the right things to grow our profitability and our success.”
“Unfortunately, the Canadian government chose to impose retroactive assessments for anti-dumping and countervailing duties tied to certain extruded aluminum products imported from China. While we continue to work with the government to clarify the applicability of these rules to our products, we recorded a charge in the third quarter for this matter,” Missad added.
Universal saw strong sales growth in four of five markets, including increases of more than 30 percent in its residential construction and manufactured housing markets and of 20 percent in its industrial market.
Sales in the third quarter to retail building materials customers – the largest chunk of UFPI’s business, by far – declined by 3 percent from the 3Q in 2011. According to the 2011 annual report, those sales totaled $839 million in 2011.
The industrial packaging/components market is UFPI’s second largest business segment and totaled $493 million last year. Manufactured housing/RVs came in at $245 million for the year and residential construction at $203 million and commercial construction/concrete forms at $77 million.
Lumber prices were up 25 percent in the third quarter and are reflected in the prices UFPI charges.
For the third quarter, UFPI broke down market-specific revenue.
- Retail building materials: $204.4 million, a decrease of 3.1 percent from the 3Q in 2011.
- Industrial packaging/components: $153.9 million, up 20 percent over 2011.
- Manufactured housing and RVs: $89 million, an increase of 35.5 percent over 2011.
- Residential construction: $69.6 million, up 33.8 percent over the same period of 2011.
- Commercial construction and concrete forming: $23.9 million, an increase of 11.4 percent over 2011.
UFPI has its headquarters in Grand Rapids Township.