Overall unit sales were up 10% over 2014, led by a 16.9% increase in sales to industrial customers. The Company saw strong sales to retail customers, with an increase of 8.3% over the same period last year. New product sales in the quarter were up more than 22% over the 2Q 2014.
Average lumber prices declined 9% since the 1Q 2015 and, year-over-year for the 2Q 2015 were down 12.6%, adversely impacting the Company’s selling prices.
“We were pleased with our improvement in gross and operating margins as we continue to enhance and diversify our product offering, allowing us to grow our capabilities and our value to our customers,” said CEO Matthew J. Missad. “These factors, and others, helped us overcome a decline in lumber prices, which hurt our profit margins on treated lumber and other similarly priced products. But our people did an excellent job managing through this challenge.”
“These results highlight the strength of our business model, which allows us to withstand adversity in one business market as well as adverse trends in the lumber market and still grow sales and profitability,” Missad added. “They also highlight the strength of our growth strategies, including our focus on sales to the industrial market and on new product development.”
Universal Forest Products, Inc. is a holding company with subsidiaries throughout North America and in Australia that supply wood, wood composite and other products to three robust markets: retail, construction and industrial.
