UFPI Announces Record Q3 2018 Earnings of $41.2M
Originally published by: Universal Forest Products — October 17, 2018
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Universal Forest Products, Inc. recently reported record financial results for the third quarter ended September 29, 2018, the thirteenth consecutive quarter in which the company has reported records in both net sales and net earnings.
“I want to thank the hard-working employees of Universal for once again producing record results, driven by strong unit sales growth of 7 percent and overall sales growth of 15 percent,” stated CEO Matt Missad. “We achieved these results despite the headwinds we experienced from a quickly changing lumber market, rising labor, benefit and transportation costs, and the short-term effects of Hurricane Florence.
Third Quarter 2018 Highlights (comparisons on a year-over-year basis):
- Net earnings attributable to controlling interest were $41.2 million, up 22 percent
- Net sales were $1.2 billion, up 15 percent
- EBITDA was $72.9 million, up 9 percent
- Gross sales increased 17 percent in the Construction market, 15 percent in the Industrial market and 13 percent in the Retail market
- Unit sales contributed 7 percent of gross sales growth; higher prices due to the lumber market contributed 8 percent
- Organic sales contributed 5 percent to unit growth while acquisitions added 2 percent
- New product sales were $138 million, up 22 percent; year-to date new product sales are $407 million, up 25 percent
The company reported the following third-quarter 2018 gross sales results:
- $361 million, up 17 percent over the same period of 2017, as unit sales contributed 9 percent and price increases accounted for 8 percent
- Organic sales accounted for 8 percent of the unit sales growth, while acquisitions accounted for 1 percent
- The company saw double-digit sales increases to customers in commercial construction (30 percent), residential construction (19 percent) and manufactured housing (10 percent)
Matt Cole stated in the earnings call, “Within the construction category, our unit sales increased by 3% to manufactured housing, 11% to residential construction, and 18% to commercial construction customers. Our acquisition of Great Northern Lumber earlier this year contributed to our commercial construction growth.”