Grand Rapids-based UFP Industries Inc. has released its best quarterly earnings report in the company’s 65-year history.
The global retail, industrial and commercial supplier of wood and wood composite products reported $1.49 billion in net sales for the quarter ending Sept. 26. This signified a 28-percent increase from the same period last year. The gains were caused by a 20-percent increase in pricing along with a 9-percent increase in units sold.
UFP Industries (Nasdaq: UFPI) — formerly Universal Forest Products Inc. — also reported earnings of $1.25 per diluted share, a 49-percent increase from the same period last year. Gross profits for the company increased 29 percent to more than $241 million.
UFP was once again buoyed by a strong performance from its retail operations, which benefited from high lumber prices paired with a recent spike in demand, according to CEO Matthew Missad.
UFP Retail Solutions recorded $700.5 million in net sales for the quarter, which was up 76 percent from the third quarter in 2019. Higher selling prices increased sales by 42 percent while unit sales increased by 34 percent.
Product lines like ProWood, Dimensions, Outdoor Essentials and Deckorators fueled the surge in sales.
UFP Industrial rounded out the third quarter with $282.1 million in net sales, a 4-percent year-over-year increase. UFP Construction completed $447.1 million in net sales, which was up 0.4 percent from last year.
Missad also credited the company’s investments in new products as a reason for UFP Retail Solutions’ success. New product sales were up 41 percent.
These investments include the recent acquisition of Fire Retardant Chemical Technologies LLC, a leading research and development company specializing in wood treating technologies such as fire retardants.
With $700 million in available liquidity, the company is also maintaining a pipeline of acquisition targets.
“One of the many lessons I will take from 2020 is that UFP Industries has the business diversification, processes and experienced team members to face serious challenges and continue to serve customers while delivering strong results for our stakeholders,” Missad said in a statement.
“So far this year, we faced a pandemic, shut-down orders that disrupted economic activity, a record increase in lumber pricing, supply constraints, wildfires, hurricanes and rail shortages,” he said. “Despite that, our teams worked diligently to address shifting customer demands, managed inventory wisely, and delivered record results.”