Despite nail duties, UFPI looks strong in Q2
A more stable lumber market boosted the second-quarter performance of Universal Forest Products, even as the company was forced to pay higher duties for Chinese nails.
Universal reported second-quarter net earnings of $21.8 million, up 38.1% over net earnings of $15.8 million for the second quarter of 2013. Net sales were $773 million, up 4.6% from $738 million in the same quarter last year.
“We focused on profitability and made great strides,” said Universal CEO Matthew J. Missad. “The people of this company did the right things to drive sales and increase profitability to meet our strategic goals. They created a better product mix of value-added sales and enhanced operational efficiencies, driving success in the second quarter.”
The company’s earnings were reduced by $1.6 million for expected retroactive increases in U.S. duties assessed against a Chinese supplier of nails the company imported prior to March 2013.
The company said it benefited from a more stable lumber market in the second quarter of 2014 relative to the second quarter of 2013, when the lumber market fell for several weeks, adversely impacting profitability on certain products.
“We had strong sales gains to our retail market, as well as gains in sales to our industrial market. Our construction market saw strong sales to commercial construction; however, those gains were offset by declines in our framing operations, due to our decision to accept only business that meets certain profitability criteria, and to a drop in sales to manufactured housing customers,” Missad explained.
Missad said the company is on track to achieve its goals of $3 billion in sales and operating margins at normal historical levels by 2017.
Sales to retail customers — big box and independent — were up 11% to $349.1 million. The company said pent-up demand from a harsh and prolonged winter gave way to better weather in the second quarter.
The company reported a 4% decline in sales to the commercial construction market.
Carter Lumber expands in Charlotte
Kent, Ohio-based Carter Lumber continues down the expansion trail by opening a new location on the north side of Charlotte.
The facility located at 4401 Pete Brown Rd. in Charlotte made its first deliveries Monday, five days after taking possession.
“Carter Lumber’s growth plan is to expand and make investments into markets within our existing footprint,” said Jeff Donley, president and chief operating officer for Carter Lumber. “Entering the Charlotte market is a natural extension of our progression in the Southeast, and we look forward to building relationships with customers and being the best lumberyard in the market.”
With two facilities in the market, Carter Lumber will now be able to provide service from the south side with our lumberyard in Rock Hill, South Carolina (35 miles away), and the north side with this new location. The 14-acre full service lumberyard will offer rough framing lumber, engineered components and place a heavy emphasis on millwork products.
Managing the market operations will be a team led by Brandon Kujawski and Brian Massie.
“As we expand our southeast operations, we were looking for a location to support the growth of our core business in lumber and millwork. Having this second location is a great start to let us work toward becoming Charlotte’s employer of choice and the professional builder’s supplier of choice, said Kip Gleckler, senior VP field operations for Carter Lumber.
Carter operates more than 144 stores and manufacturing facilities in 12 states.
WOLF adds Poly-Ash Moulding to its lineup
WOLF has a new collection in its arsenal. Its Poly-Ash Moulding is a new line of exterior trim made with more than 70% recycled material that seeks to correct the limitations of wood and PVC.
The mouldings are made with Boral TruExterior Trim and are manufactured entirely in the U.S. They’re also covered by Boral TruExterior Trim’s 20-year limited warranty once painted.
Designed with durability in mind, the mouldings offer resistance to rotting, cracking, splitting and termites, and they eliminate the need for end-sealing or special adhesives.
They come in five designer profiles and 11 additional special order profiles, and they’re easy to cut, rout, miter and shape.
The line is now available exclusively to independent dealers across the 33 states in WOLF’s network.