GRAND RAPIDS — Wood products company UFP Industries Inc. said its ability to stay on the job during the COVID-19 pandemic led to record net earnings for the second quarter of 2020.
UFP Industries (Nasdaq: UFPI), formerly known as Universal Forest Products Inc., generated $1.24 billion in net sales for the quarter, which was essentially flat compared to the same period a year ago. Higher lumber prices contributed 3 percent in net sales, which was substantially offset by a 3-percent decrease in units sold.
For the quarter that ended June 30, UFP Industries reported net earnings of nearly $69.7 million, or $1.08 per share. That’s an increase of more than 26 percent from net earnings of $55.1 million, or 88 cents per share, a year ago.
As a provider of wood, wood composites and other supplies, UFP Industries was buoyed by its retail segment, which generated $609.2 million in net sales, a 26-percent increase over the second quarter 2019. Sales in the company’s industrial segment were $224.4 million, a 23-percent drop, while its construction segment generated $359.2 million in sales, a 13-percent year-over-year decline.
The company said new product sales were up 6 percent, driven by retail, where they grew nearly 16 percent.
“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,” UFP Industries CEO Matthew Missad said in a statement.
“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. Overall, our results once again validate our balanced business model and diverse product portfolio, which combine to mitigate the risk of a decline in a single market.”
In its earnings report, company executives indicated continued pursuit of enhancing valued-added services and product offerings, exemplified by the recent acquisition of T&L Lumber, a company that manufactures and distributes products used in nurseries, as MiBiz previously reported.
“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,” Missad stated. “They rapidly adapted to the changes in the markets they serve and made the changes necessary to keep our employees safe.”