Net sales grew in all three markets to total $713.5 million in the 3Q 2014, up 9.5% over $651.8 million in the 3Q 2013. Earnings attributable to controlling interests for the 3Q 2014 included a net gain of $700,000 on the sale of certain assets.
“We experienced solid sales growth in each of our markets, and we continued to improve operational efficiencies and maintain our focus on profitability. The third quarter saw profitable growth and progress toward many of our longer-term goals,” said CEO Matthew J. Missad. “Our teams are executing their plans, and their excellent performance clearly shows in the financial results. I am proud of their efforts to create value in this economy.”
Retail: $272.5 million, an increase of 10% over the 3Q 2013. Universal saw increased sales to big box and independent customers alike. Unit sales were up five percent, which was in line with expectations. The Company attributes the increased sales to a better repair-and-remodel market demand and slight increases in housing starts. Big box retailers saw increases in same-store sales during the period. Universal realized margin improvements in this market, due to better operational efficiencies and enhanced product mix with new product sales in the quarter.
Industrial: $211.3 million, an increase of 13% over the same period of 2013. Sales to this market continued a path of sustainable growth, with increased sales to existing customers. This remains a healthy market with solid growth opportunities for the Company with both existing and new customers.
Construction, $239.8 million, up 6% over the 3Q 2013. Results in this market reflect the Company’s focus on sustainable business and more selective pricing strategies. Sales to this market continued to be negatively impacted by the vertical integration of one of the Company’s largest manufactured housing customers and by a drop in prices of OSB during the 3Q. The diversification of markets within UFP continues to improve as the Company becomes less dependent on housing starts for sales growth. In fact, the percent of residential construction sales to total sales has declined from its peak in 2006 of 31.6% to the current 12.8%.
Universal Forest Products, Inc. is a holding company that provides capital, management and administrative resources to subsidiaries that supply wood, wood composite and other products to three robust markets: retail, construction and industrial.
