Universal Forest Products announced record-breaking 2015 third-quarter results. The company posted the best third-quarter earnings in its history with net earnings attributable to controlling interests of $25.6 million, an increase of 32.9 percent over the same period of 2014.
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It also posted the highest year-to-date net earnings in its history, at $61.7 million. Earnings per diluted share were $1.26 in the third quarter of 2015, up from $0.96 in the third quarter of 2014. Net sales of $762.3 million for the third quarter were up 6.8 percent over the same period of 2014.
The company saw strong unit sales in each of its markets, although sales dollars were impacted by a lumber market that was down 17.6 percent in the third quarter from the same period of 2014. By market, the company posted the following third-quarter gross sales results:
Retail: $295.3 million, up 9.2 percent over the third quarter of 2014: The company saw increased unit sales to this market, particularly to big box customers, thanks in large part to market share gains and enhanced product mix. These results correspond to healthy increases in U.S. same-store sales reported by big box customers in their most recent quarters.
Industrial: $236.0 million, up 10.9 percent over the third quarter of 2014: The company’s results in this market are attributable to a healthy blend of factors: strong performance by acquisitions, growth with existing customers, and the addition of approximately 130 new customers in the quarter, excluding the impact of recently acquired businesses.
In August 2015, the most recently reported month, industrial production in the United States was 0.9 percent higher than the same period of 2014.
Construction: $241.8 million, up 0.7 percent over the same period of 2014: In this market, the company saw the greatest gains in unit sales in the commercial and infrastructure construction space—a 16 percent increase over the same period of 2014.
This remains another area of strong opportunity for growth. The company continues to focus its residential construction efforts in geographic areas of anticipated stable growth and recently added capacity in these markets. ■