Retail sales soar 107% as construction sales jump 106%.
UFP Industries, Inc. (UFP) reported record net sales of $2.7 billion for the second quarter of 2021, a 117% increase over second quarter 2020 net sales of $1.24 billion.
Retail sales at UFP soared 107% to $1.26 billion due to a 59% increase in selling prices and a 48% unit increase due to the acquisitions of Sunbelt Forest Products and Spartanburg Forest Products. Organic unit sales fell 4 percent due to a 17% decline in the ProWood business unit.
Organic growth was achieved by UFP-Edge (up 27%), Deckorators (up 11%), and Outdoor Essentials (up 6%) due in part to expanded operational capacity. Additional capacity for each of these product lines is expected to come online in 2022, UFP said.
New product sales grew 32%, driven by UFP-Edge shiplap and trim, ProWood Fire Retardant treated lumber, and Outdoor Essentials fencing and picnic tables.
Construction sales jumped 106% to $739 million in the quarter from the second quarter of 2020 due to a 29% increase in unit sales and a 77% increase in selling prices. Unit sales to factory-built and site-built housing customers rose 56% and 32%, respectively. Unit sales to commercial customers improved, rising 11%. New product sales increased 184% from the prior period.
Net earnings for the quarter shot up 151.6% to $175.3 million.
The Bottom Line: UFP profits soar to $175.3 million as the company reports record second quarter sales of $2.7 billion.
What the CEO said: “In the last year and a half, UFP Industries has been tested by an unprecedented economic disruption and the most turbulent supply and pricing changes in our industry’s history. Despite those challenges, we have continued to improve our business and serve customers without disruption,” said CEO Matthew Missad. “We continue to break records with our financial performance, a feat I attribute to the hard work of our employees, our new market-focused organizational structure, and our balanced business model, which allows us to sell into a variety of diverse markets. Another key contributor to our success is our improved pricing model and managed inventory programs, which allow us to mitigate the impact of lumber market fluctuations like those we experienced during the second quarter.”
Company info: The full second quarter financial report from UFP Industries is available here.