Universal Forest Products, Inc. reports a 63% increase in diluted earnings per share for 1st quarter 2005
GRAND RAPIDS, Mich., April 11, 2005 — Universal Forest Products, Inc. (NASDAQ: UFPI) today announced a strong first quarter, marked by an increase in diluted earnings per share to $0.49, up 63.3% over diluted earnings per share of $0.30 reported for the same period last year. The Company posted net sales of $537.2 million, up 15.4% over net sales of $465.7 million in the first quarter of 2004.
“In our 50th year, the story of our success continues to be one of strong, steady growth driven by the hard work of a dedicated workforce,” said Universal CEO and Vice Chairman William G. Currie. “These results also reflect the strengths of our business model, which relies on diversification for continued balance and growth.”
Overall, the Company posted a sales increase of 15.4%, which includes an estimated 9% increase in unit sales. The remaining increase in sales was attributable to higher prices driven by the lumber market.
By market, Universal posted first quarter sales of:
- $177.6 million D-I-Y/retail, down 0.7% over last year;
- $151.9 million in site-built construction, an increase of 32.3% over last year;
- $111.3 million in industrial, up 17.2% over last year; and
- $96.3 million in manufactured housing, a 25.2% increase over 2004.
“We have not wavered in our commitment to and belief in the manufactured housing business and it has paid off,” Currie said. “We’ve also emphasized growth in sales to the modular market and our performance there can be attributed to new proprietary products and to strong relationships we’ve forged over many decades.
“Site-built construction and industrial remain strong growth markets for Universal,” Currie added. “As the leading national supplier to both, we’re gaining market share and continuing to consolidate these two large, fragmented markets.”
Sales to the D-I-Y/retail market experienced a decline in unit sales in the first quarter of 2005 over the same period of 2004, reflecting both the Company’s efforts to create greater balance and diversification in its customer base and a late spring in the Northeast and Midwest.
Currie noted that earnings from operations increased almost 39%, to $17.4 million in the first quarter 2005 from $12.5 million for the first quarter last year, which was well in excess of the Company’s 9% increase in unit sales. Earnings in 2004 were affected by operating losses from a framing operation in the West. That business entity has since been downsized and is operating more efficiently.
OUTLOOK
The Company anticipates continued growth in its business in 2005 and reaffirms its annual targets of a 7% to 12% increase in unit sales and a 10% to 15% increase in net earnings over results reported for 2004.
Universal Forest Products will conduct a conference call to discuss information included in this news release and related matters at 11:00 a.m. EDT on Tuesday, April 12, 2005. The conference call will be hosted by William G. Currie and will be available for analysts and institutional investors domestically at (866) 835-8893 or internationally at (703) 639-1409. Use conference call ID #680965. The conference call will be available simultaneously, and in its entirety, to all interested investors and news media through a webcast at www.ufpi.com.
Celebrating its 50th anniversary, Universal Forest Products markets, manufactures and engineers wood and wood-alternative products for D-I-Y retail home centers, structural lumber products for the manufactured housing industry, engineered wood components for the site-built construction market and specialty wood packaging for various industries. Among the company’s newest and fastest-growing ventures are framing services for the site-built sector. In conjunction with its customers, Universal uses its engineering and manufacturing expertise, coupled with highly skilled employees, to design and construct buildings and housing. For information about Universal Forest Products on the Internet, please visit the Company's web site at www.ufpi.com , or call 888-BUY-UFPI.
Included in this report are certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are based on the beliefs of the Company's management as well as on assumptions made by and information currently available to the Company at the time such statements were made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Among the factors that could cause actual results to differ materially are the following: Adverse lumber market trends, competitive activity, negative economic trends, government regulations, and weather. These risk factors and additional information are included in the Company's reports on Form 10K and 10Q on file with the Securities and Exchange Commission.
Click here to view 1st quarter 2005 financial highlights (pdf – 224 KB)