– Year-to-date profits up 30 percent over 2015 –
GRAND RAPIDS, Mich., Oct. 18, 2016 (GLOBAL NEWSWIRE) – Universal Forest Products, Inc. (Nasdaq: UFPI) today announced recording-breaking 2016 third-quarter results, including net earnings attributable to controlling interests of $27.8 million, an increase of 8.9 percent over the same period of 2015. Year-to-date net earnings attributable to controlling interests were $80.4 million, up 30 percent over 2015. Earnings per diluted share were $1.36 in the third quarter of 2016, up from $1.26 in the third quarter of 2015. Net sales of $826.7 million – also a record for the third quarter – were up 8.4 percent over the same period of 2015.
“The employees of Universal are working hard to top the records they achieved during the last half of 2015, and we are pleased once again to report record results and growth,” said CEO Matthew J. Missad. “We grew sales significantly in two key markets and continue to increase our sales of new products.” Year-to-date new product sales were $247.9 million, a 16 percent increase over the $213.3 million reported for the same period of last year.
“We are continuing to make investments in our business and people to promote and enhance our continued success,” Missad noted. “We have added staff and are investing in their training to support our growth. We also are investing in several significant initiatives, including new international and e-commerce groups, and a research and design center, all of which we believe will contribute to our success in 2017 and beyond.”
Missad added that the Company continues to look for strategic acquisitions. Its purchase of idX Corp. closed near the end of the third quarter. idX is an international provider of highly customized merchandising solutions. Based in St. Louis, Mo., it has a network of more than 20 facilities across North America, Europe and Asia. Its sales in 2015 were approximately $303 million.
By market, the Company posted the following net sales results:
$339.7 million, up 15 percent over the third quarter of 2015
The Company benefited from a 9 percent increase in unit sales as well as rising lumber prices. Year-to-date retail unit sales are up 10 percent. During the third quarter, sales to big-box retailers increased 20 percent and sales to other retailers increased 8 percent, in part because of market-share gains and increasing sales of new products. Our retail customers have benefited from improving U.S. consumer demand, as evidenced by the healthy gains in same-store sales they reported in their most recent quarters.
$265.6 million, up 10 percent over the same period of 2015
Overall, unit sales in the construction market were up 6 percent over the same period of 2015, led by strong unit sales gains of 9 percent in residential construction. According to the U.S. Census Bureau, housing starts increased approximately 2.4 percent from June through August 2016 compared to the same period of 2015. The Company continues to focus its residential construction efforts in geographic areas of anticipated stable growth and recently added capacity in these markets.
$233.8 million, down 1 percent from the third quarter of 2015
The Company has maintained its share of the industrial market but experienced a modest decrease in sales because of the softening U.S. economy, a decrease in U.S. exports, and its efforts to be more selective by focusing on higher-margin, value-added business.
Universal Forest Products will conduct a conference call to discuss information included in this news release
and related matters at 8:30 a.m. ET on Wednesday, October 19, 2016. The call will be hosted by CEO Matthew J. Missad and CFO Michael Cole, and will be available for analysts and institutional investors domestically at (888) 685-5759 and internationally at (503) 343-6031. Use conference ID 68009457. The conference call will be available simultaneously and in its entirety to all interested investors and news media through a webcast at http://www.ufpi.com. A replay of the call will be available through November 19, 2016, at any of the following numbers: (855) 859-2056 or (404) 537-3406 or (800) 585-8367.