Skip to main content

Improved Efficiencies Help Universal Forest Narrow Loss

The company's net loss narrowed to $0.06 per share in the first quarter.

Once these most recent quarterly results are finalized, they will be run through Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit Ratings Screener.

Universal Forest Products


reported on April 15, 2009 that its Q1 FY09 net loss narrowed due to improved efficiencies and inventory management. Net loss for the quarter stood at $1.16 million or $0.06 per share compared to a loss of $4.40 million or $0.24 per share in the prior year's quarter. The most recent consensus estimate was a loss of $0.21 per share.

Total revenue plunged 26.1% to $361.72 million from $489.51 million a year ago. Looking at the company's business segments, revenue from Do-It-Yourself/Retail segment decreased 4.2% to $168.13 million from $175.46 million, and Site-Built Construction revenue dropped 43.2% to $60.77 million from $107.01 million in the year-ago quarter. Industrial revenue slipped 25.8% to $103.66 million from $139.61 million in Q1 FY08, due to a decline in demand for wood packaging and other products. Revenue from the Manufactured Housing segment slumped 52.2% to $36.55 million from $76.44 million.

During Q1 FY09, the cost of goods sold decreased 27.6% to $314.90 million from $434.69 million. Gross profit dropped 14.6% to $46.82 million from $54.82 million, but gross margin improved 174 basis points to 12.94% from 11.20%. Selling, general, and administrative expenses diminished 16.1% to $49.09 million from $58.54 million a year ago. Loss on disposition of assets and other impairment and exit charges stood at $1.14 million compared to a gain of $807,000 in the year-ago quarter.

Going forward, the company will cease providing guidance for the foreseeable future due to weak economic conditions.