“We focused successfully on improving the performance of our framing operations, and that was the primary driver of our increased profitability in the 1Q,” said CEO Matthew J. Missad. “We remain well-positioned in construction, and in each of our business markets, for the rebound we believe will occur as the weather breaks.”
Missad noted that a “historically brutal winter” had a negative impact on operations and businesses throughout the United States in the first quarter. “Our people were able to fight through the equivalent of approximately 80 plant closure days at our various North American operations to deliver solid results, which are set against the milder winter of 2013. We don’t like talking about winter as a driver, but it was an unavoidable factor in the 1Q of this year,” he said.
With home improvement and building projects delayed by weather, sales in the Company’s retail and construction businesses declined slightly year-over-year in the 1Q 2014 while sales in its industrial business increased. The Company’s selling prices were affected by a 5% drop in the lumber market relative to the 1Q 2013. Unit sales overall increased 3%.
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.