UFP Doubles 3Q Earnings
Originally published by: Timber Industry Magazine — October 24, 2011
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Leading US timber products supplier Universal Forest Products has doubled its net earnings in the third quarter to US$5.6m (2010: US$2.6m).
Net sales were down 2.4% to US$468.9m, while net earnings for the first nine months reached US$6.2m, compared to US$17.2m a year ago.
The company grew sales in three of its five markets: commercial construction and concrete forming, industrial, and manufactured housing.
The residential construction and retail building materials markets continue to be soft and saw sales decline in the third quarter compared to a year ago.
“Our cost-cutting efforts and a more stable lumber market helped us generate a stronger profit in the quarter,” said chief executive officer Matthew J Missad.
“Our sales suffered from a stagnant economy, which is likely to remain weak for the near term. Since we can't rely on an improved economy to grow our business, we are pursuing other avenues of growth.”
Universal’s products include decking, trusses, joists, pressure-treated wood, packaging, mouldings, lumber, panels, fencing and engineered wood products.
The company has about 6,000 employees and about 80 facilities across North America. It bills itself as America’s leading buyer of solid sawn timber and the largest customer of North America’s largest mills.