Universal Forest Products, Inc. (Nasdaq: UFPI) today announced third-quarter 2012 results, including net sales of $533.4 million, an increase of 13.7 percent over net sales of $468.9 in the third quarter of 2011. Net earnings were $4.2 million, or $0.21 per diluted share, compared to net earnings of $5.6 million, or $0.29 per diluted share, in the same period of 2011 and reflect a one-time, pretax charge of $2 million for a loss contingency associated with duties being assessed by the Canadian government on certain products imported from China.
Universal saw strong sales growth in four of five markets, including increases of more than 30 percent in its residential construction and manufactured housing markets and of 20 percent in its industrial market. While sales were bolstered by a rising lumber market, the Company saw solid unit sales growth in these markets. Sales to retail building materials customers declined, although the Company saw strong success in its strategies to diversify its customer base and grow its product mix in that market.
“We executed on the strategies we established, and I’m proud of our people,” said CEO Matthew J. Missad. “We grew sales, kept an eye on our expenses and continued to diversify via new products, new markets and with new customers. I believe we’re doing all the right things to grow our profitability and our success.”
“Unfortunately, the Canadian government chose to impose retroactive assessments for antidumping and countervailing duties tied to certain extruded aluminum products imported from China. While we continue to work with the government to clarify the applicability of these rules to our products, we recorded a charge in the third quarter for this matter,” Missad added.
Lumber prices, which affect the Company’s selling prices, were up 25.3 percent in the quarter.
By market, Universal posted the following gross sales results for the third quarter of 2012: