Universal Forest Products
reported Monday a decrease in third-quarter income and sales attributable to slowed growth in the lumber industry and a sluggish Midwest economy.
Shares sank after hours more than 12%, or $6.20, to $45.30 on the report.
For the third quarter, the Grand Rapids, Mich.-based lumber company earned $17.7 million, or 91 cents a share, a decrease of 7.6% from the year-ago quarter of $19.1 million or $1. Analysts polled by Thomson First Call sought earnings of $1.13.
Revenue for the quarter was $673 million, down 9% from sales of $721.5 million for the third quarter of 2005.
Additionally, the company lowered its annual targets for increases in net earnings and in unit sales growth to 1% to 5% respectively in 2006.
CEO Mike Glenn, in addition to citing a decline in residential construction and a soft DIY market and lackluster consumer spending, said Universal Forest was "disappointed that Do-It-Yourself/retail didn't bounce back after a lackluster second quarter. We picked up DIY market share for 2006, but store sales remained soft during the third quarter," he said.
Shares of Universal Forest gained 8 cents to $51.50 during the regular session.