UFPI's 2021 Q1 Construction Unit Earnings Up 24%
Originally published by: HBS Dealer — February 25, 2021
The following article was produced and published by the source linked to above, who is solely responsible for its content. SBC Magazine is publishing this story to raise awareness of information publicly available online and does not verify the accuracy of the author’s claims. As a consequence, SBC cannot vouch for the validity of any facts, claims or opinions made in the article.
UFP Industries posted sales of $1.39 billion for the fourth quarter 2020, increasing 40% from sales of $998 million in the fourth quarter 2019.
The Grand Rapids, Mich.-based company said it realized a 15% increase in unit sales and a 25% increase in lumber prices during the period.
UFPI’s Retail Solutions division saw sales spike 76% to $505.2 million in the quarter, due to a 38% rise in unit sales and a 38% climb in selling prices. All business units in the division experienced double-digit unit sales increases, including Deckorators (up 80%), Outdoor Essentials (up 64%), Home & Decor (up 38%), UFP Edge (up 27%), and ProWood (up 25%).
Sales in the UFPI’s Industrial division increased 25% to $309.1 million as sales in its Construction division ascended 24% to 508.3 million.
For the full year, UFPI reported that sales moved ahead 17% to $5.15 billion due to a unit sales increase of 6% and an increase in lumber prices of 11%. This is the first time that UFPI has broken the $5 billion sales mark, the company said.
UFPI reported net earnings of $64.8 million for the fourth quarter, which is more than a 67% rise from net earnings of $38.7 million in the previous fourth quarter.
For the full year, UFPI reported that net earnings increased more than 39% to $254 million from net earnings of $182.4 in the previous year.
The Bottom Line: UFPI profits surge ahead 67% to $64.8 million in the fourth quarter as sales jump 40% during the period.
What the CEO said: “Despite the disruptions that marked 2020, our reorganized structure allowed our employees to remain focused on bringing new value-added products to market faster and using capital more efficiently, while supporting more rapid growth at a lower incremental cost,” said CEO Matthew Missad.
Company info: UFPI’s full fourth quarter 2020 and year-end report is available here.