Universal Forest Products 2Q profit up 38 percent

Jul 17, 2009. /Lesprom Network/. Universal Forest Products Inc. on Wednesday said its second-quarter profit jumped 38 percent despite lower sales, as the company cut operating costs and reduced debt, Associated Press reported. The company, which produces lumber, wood packaging and other products, posted profit for the three months ended June 30 of $16.1 million, or 83 cents per share, up from $11.7 million, or 61 cents per share, in the year-earlier period. Sales slid 27 percent, to $514.9 million, from $708.5 million last year. Analysts polled by Thomson Reuters, on average, expected profit of 46 cents per share, on revenue of $559.6 million. Sales in all of its markets continue to be hurt by weak demand and depressed lumber prices, the company said. Do-it-yourself retail sales fell 14 percent to $291.5 million. Industrial packaging and components dropped 24 percent to $131.3 million. Site-built construction plunged 54 percent to $60.8 million, and manufactured housing sales tumbled 47 percent to $44.7 million. The company said it sees opportunities for growth in retail sales and industrial packaging, but price pressure continues in construction. For manufactured housing, the company said a recovery in the housing market is needed to improve sales.