UFP swings to loss in first quarter
Grand Rapids, Mich.-based Universal Forest Products (UFP) posted first-quarter 2011 net sales of $387.2 million, down 1.5% from net sales of $393.0 million in the same period of 2010.
UFP posted a net loss of $3.7 million compared with net earnings of $1.0 million for the first quarter of 2010.
"We are not satisfied with our results this quarter, but we know that our business was affected by challenging external factors, and we have reason for optimism for the balance of the year," said CEO Michael B. Glenn. "We expect a more stable market this year and have improved performance expectations, particularly in the back half of the year."
Among the key factors that hurt sales and profitability, according to the company, were major winter storms in January and February, plus a dramatic run in lumber prices in early 2010 that boosted margins in the year-ago quarter.
The company is encouraged by the continued strength of the industrial market, Glenn said.
Sales rise at HD Supply
HD Supply has reported net sales for its fiscal 2010 fourth quarter of $1.7 billion, a 6.7% rise over sales in the fourth quarter of fiscal 2009. Operating loss for the quarter, which ended Jan. 30, 2011, was $11 million, compared with $87 million in the fourth quarter of fiscal 2009.
For the full year, net sales for fiscal 2010 were $7.5 billion, an increase of 0.8% over the full year of fiscal 2009. Operating income in fiscal 2010 was $32 million, an increase of $354 million compared with the full year of fiscal 2009, which included a $224 million pre-tax goodwill impairment charge. Excluding the goodwill impairment charge in fiscal 2009, adjusted operating income for fiscal 2010 increased $130 million compared with fiscal 2009.
In a prepared statement, company CEO Joe DeAngelo addressed the company’s liquidity, which increased $426 million during the fiscal year, resulting in $1.3 billion at the end of the fourth quarter.
“In 2010, our associates’ continued focus on our customers, and our significant investments in the company to accelerate sales and growth momentum enabled us to gain market share and report year-over-year improved financial results, the first since 2007,” DeAngelo said. “Furthermore, our liquidity remains very strong, which allows us to meet our commitments and continuously invest in profitable growth.”
Stock hires former Home Depot exec
Mark Fikse has joined Stock Building Supply as the division president and general manager for the Southeast region, reporting to CEO Jeff Rea, according to a company statement. He will be responsible for business operations in North and South Carolina and Georgia.
Before joining Stock, Fikse served as a principal with American Capital since 2006. He was president of Creative Touch Interiors, a subsidiary of The Home Depot from 2000 to 2005. Prior to that, Fikse was VP strategic business development for The Home Depot from 2000 to 2002. He has also held positions with McKinsey & Co., Accenture and Blue Ridge Partners.