GRAND RAPIDS — Wood products manufacturer UFP Industries Inc. credits strong market conditions and success in implementing its strategic plan for driving what CEO Matt Missad described as “unprecedented growth” in the first quarter.
The Grand Rapids-based UFP generated more than $1.8 billion in first quarter net sales, a 76.8-percent increase from a year ago. The company reported net earnings of nearly $103 million, or $1.67 per diluted share, up nearly 157 percent compared to about $40.2 million in the same period last year.
UFP Industries set quarterly records for both sales and earnings and did so in a quarter normally limited by seasonal factors, according to an earnings statement.
“We are using our new market-focused structure to target and quickly assimilate acquisitions, better leverage our fixed costs, and reallocate resources to increase capacity efficiently,” Missad said in a statement. “As a result, we are experiencing strong organic growth in our retail and industrial segments as well as in our site-built and factory-built housing business units.”
High wood prices accounted for 44 percent of the increase in sales. The company attributed increased unit sales for a third of overall growth, followed by acquisitions (23 percent) and organic growth (10 percent).
By segment, UFP Industries’ sales were up 116 percent in retail, 75 percent in industrial and 47 percent in construction. Increased unit sales factored into the growth of each segment, as did increased pricing, a reflection of “a better pricing model that quickly adjusts to lumber market fluctuations,” Missad said.
Missad also indicated the company remains acquisitive, even after completing two key transactions after the end of the first quarter. They included a deal in which UFP Retail Solutions affiliate Sunbelt acquired Spartanburg Forest Products to expand wood pressure-treating capacity in the eastern U.S., and a deal for Walnut Hollow Farm, a producer of finished wood surfaces for the hobby, craft and woodworking market.
“UFP will continue to pursue acquisitions that expand our capacity, enhance our capabilities, improve efficiencies and increase our sales of value-added products. Growth is baked into our DNA,” Missad said.
Editor’s note: This story has been corrected with updated first quarter sales and net revenues.