Grand Rapids, Mich.-based Universal Forest Products announced second-quarter net earnings of $4.3 million, down 69% from net earnings of $13.7 million in the second quarter of 2010.
Net sales totaled $544.1 million, down 15% from net sales of $638.6 million for the same period of 2010. Sales were affected by weak consumer spending on larger-ticket home-improvement items.
"These are challenging times, but we are positioning the company for better results. We have cut costs and implemented plans intended to maintain our strengths and capitalize on our opportunities moving forward," said outgoing CEO Michael Glenn. "We’re maintaining a keen focus on costs and on prudent, conservative decision-making that will create opportunities for sustainable growth and success."
In June 2011, Universal announced measures to align its costs with its business, including cuts that the company expects to result in annualized savings of about $10 million.
In other company news, Universal has appointed Matthew Missad as CEO.
Missad, former Universal EVP and general counsel, succeeds Michael Glenn, who resigned in June 2011 for personal reasons.
"Matt has proven his leadership abilities, strategic acumen and business skills in innumerable ways in 26 years at Universal, and I think he’s the perfect person for the job," said chairman William Currie.
Added Dan Dutton, the board’s lead independent director: "Matt will lead a distinguished team that includes president and COO Pat Webster and CFO Mike Cole, a powerful group that will take Universal solidly into the future."
Missad is the fifth CEO in the company’s 56-year history, following William Grant Sr., Peter Secchia, William Currie and Michael Glenn.