Strong Q1 for Universal Forest Products
Universal Forest Products, Inc. (Universal) reported first quarter 2018 sales of $994 million, more than a 17% increase from net sales of $846 million in the first quarter 2017.
The Grand Rapids, Mich.-based building and wood products manufacturer also reported first quarter net earnings $33.6 million, a 56% increase from net earnings of $21.6 million for the same period a year ago.
During the first quarter Universal acquired Naches, Wash.-based Spinner Wood Products, a manufacturer of agricultural bins and industrial products, and Great Northern Lumber, a manufacturer of industrial and concrete forming products in the Chicago area.
In early April, the company acquired Expert Packaging, an Australian industrial packaging manufacturer, and Fontana Wood Products, an industrial lumber-processing facility in Fontana, Calif. The recently completed acquisitions are expected to contribute annual sales of approximately $50 million, Universal said.
Universal also recently announced an agreement to acquire certain assets of North American Container Corp. (NACC), an industrial packaging manufacturer based in Georgia with sales of approximately $71 million in 2017.
“Due to the elevated level of the lumber market, we are focused on unit sales growth, and are pleased that half of our sales growth came from increases in unit sales, including new products,” said Matt Missad, CEO of Universal Forest Products. “We are excited about the diverse range of products that we have launched during the past several years and are seeing significant growth with a number of them. Individually, most new products don’t have a notable sales impact; however, as a whole, they have a positive impact.”
Universal’s first quarter retail sales totaled $371 million, up 19% over the same period of 2017, as unit sales contributed 10% and price increases accounted for 9%, the company reported. Organic retail sales contributed 3% to growth while acquisitions added 7%.
Sales to big box customers increased 15% while sales to independent customers grew 24%, Universal said.
Construction sales were $308 million, up 16% over the same period of 2017, as unit sales contributed 6% and price increases accounted for 10%. Organic construction sales contributed 6% to unit growth and there was no impact from acquisitions. Sales to manufactured housing customers grew 24%, while sales to commercial and residential construction customers grew 18% and 7%.
The Grand Rapids, Mich.-based building and wood products manufacturer also reported first quarter net earnings $33.6 million, a 56% increase from net earnings of $21.6 million for the same period a year ago.
During the first quarter Universal acquired Naches, Wash.-based Spinner Wood Products, a manufacturer of agricultural bins and industrial products, and Great Northern Lumber, a manufacturer of industrial and concrete forming products in the Chicago area.
In early April, the company acquired Expert Packaging, an Australian industrial packaging manufacturer, and Fontana Wood Products, an industrial lumber-processing facility in Fontana, Calif. The recently completed acquisitions are expected to contribute annual sales of approximately $50 million, Universal said.
Universal also recently announced an agreement to acquire certain assets of North American Container Corp. (NACC), an industrial packaging manufacturer based in Georgia with sales of approximately $71 million in 2017.
“Due to the elevated level of the lumber market, we are focused on unit sales growth, and are pleased that half of our sales growth came from increases in unit sales, including new products,” said Matt Missad, CEO of Universal Forest Products. “We are excited about the diverse range of products that we have launched during the past several years and are seeing significant growth with a number of them. Individually, most new products don’t have a notable sales impact; however, as a whole, they have a positive impact.”
Universal’s first quarter retail sales totaled $371 million, up 19% over the same period of 2017, as unit sales contributed 10% and price increases accounted for 9%, the company reported. Organic retail sales contributed 3% to growth while acquisitions added 7%.
Sales to big box customers increased 15% while sales to independent customers grew 24%, Universal said.
Construction sales were $308 million, up 16% over the same period of 2017, as unit sales contributed 6% and price increases accounted for 10%. Organic construction sales contributed 6% to unit growth and there was no impact from acquisitions. Sales to manufactured housing customers grew 24%, while sales to commercial and residential construction customers grew 18% and 7%.