Home improvement boosts UFP Industries in Q2
UFP Industries reported second quarter sales increased to $1.242 billion from second quarter 2019 sales of $1.239 billion.
The Grand Rapids, Mich.-based holding company said rising lumber prices contributed a 3% increase to total sales for the quarter but was impacted by a 3% decline in units sold.
Earnings from operations soared 24% to $92.4 million while net earnings attributable to controlling interest of $66.5 million were up 22%.
UFPI retail sales rose 26% to $609.2 million for the quarter as retail unit sales increased 22%, with higher selling prices increasing sales by 4%.
Industrial sales fell 23% to $222.4 million as UFPI Construction sales declined 13% to $359.2 million. Within its construction segment, UFPI reported that sales from concrete forming were down 5%, site built sales fell 15%, commercial sales dropped 19% and factory built sales saw a 20% falloff.
The Bottom Line: Profits increase 24% to $92.4 million but sales nearly break even with the second quarter a year ago at $1.242 billion.
What the CEO said: “While virus-related shutdowns negatively impacted our industrial and construction segments in ways we expected, the increase in home improvement activity resulting from stay-at-home orders benefited our retail segment,” said Mathew Missad, president and CEO of UFP Industries. “Conditions improved as we progressed through the second quarter, as demand in our retail segment accelerated sharply while the headwinds in our industrial and construction segments eased.”
“We experienced much greater than expected demand for our home improvement products, and I give credit to our managers, treating and production teams, and buyers who worked tirelessly to fill customer orders and continue to do so. Our decentralized, entrepreneurial model empowers our local leaders with the decision-making authority they need to respond quickly to market changes, and our experienced team answered the call again, just as they have during other challenging times."
Company info: The full second quarter 2020 report from UFP Industries can be accessed here.