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Universal Forest Products Inc. (Nasdaq: UFPI), Grand Rapids, MI, reported second-quarter sales of $773 million, up 4.6 percent over the same period a year ago. Profit increased 38.1 percent to $21.8 million.
UFPI benefited from a more stable lumber market in the second quarter of 2014 relative to the second quarter of 2013, when the lumber market fell for several weeks, adversely impacting the company’s profitability on certain products.
“We had strong sales gains to our retail market, as well as gains in sales to our industrial market,” CEO Matthew Missad said. “Our construction market saw strong sales to commercial construction; however, those gains were offset by declines in our framing operations, due to our decision to accept only business that meets certain profitability criteria, and to a drop in sales to manufactured housing customers.”
As pent-up demand from a harsh and prolonged winter gave way to better weather in the second quarter, UFPI sales to retail customers grew 11 percent to $349.1 million.
Sales to industrial markets were $203.5 million, up 5 percent over the second quarter of 2013. Industrial production in the U.S. increased 0.6 percent in May 2014 after having declined 0.3 percent the previous month, and was 4.3 percent higher than the previous year, according to the most recent statistics available.
Sales to construction customers were $231.6 million, down 4 percent from the same period of 2013.
For the first six months, UFPI had sales of $1.3 billion, up 3 percent over the prior-year period. Profit grew 38 percent to $29 million.