Grand Rapids, MI, October 12-- Universal Forest Products announced record results for the third quarter, including a 20% increase in net earnings.
Net earnings for the third quarter 2004 were $14.6 million, compared to net earnings of $12.2 million for the same period in 2003. For the year-to-date 2004, net earnings were $39.9 million, an increase of 18% over year-to-date net earnings of $33.9 million in 2003.
Universal reported net sales for the quarter of $709.3 million, a 32.3% increase over net sales of $536.3 million in the third quarter of 2003. Net sales for the first nine months of 2004 were $1.92 billion, a 32.8% increase over net sales of $1.44 billion for the same period in 2003. The higher lumber market accounted for 21% of the net sales increase for the third quarter 2004 and for 22% of the 2004 year-to-date net sales increase.
"We continue to successfully execute our growth strategy, thanks to the determination of the people of Universal, who are focused on the Company's goals," said CEO and vice chairman William G. Currie.
"These numbers are the result of hard work and determination -- the very qualities that have spurred Universal's success for nearly 50 years," he added.
The company produced significant year-over-year sales increases of 74% and 52% in its site-built construction and industrial markets, respectively. Both are markets in which Universal sees strong opportunity for continuing growth. "Although we enjoy leadership positions in these arenas, we believe there's a tremendous opportunity to expand market share and we'll continue to leverage our strengths to grow in these fragmented markets," he said.
In addition, Currie expressed optimism for the growing modular housing segment of the manufactured housing market. "We have some exciting new products that are allowing manufacturers to enhance and customize their homes, and that means opportunity for Universal," Currie said.
He noted that D-I-Y sales remain soft due to increases in lumber costs, which may be prompting homeowners to delay improvement projects; the hurricanes that effectively put a halt to improvement projects during the quarter in Florida and the Southeastern United States; and the higher cost of treated wood due to industry changes in the treating compounds, which may be affecting consumers' purchasing decisions.
Following are Universal's third-quarter 2004 sales by market:
· $280.7 million in D-I-Y/retail, an increase of 7.2% from the same period last year;
· $194.6 million in site-built construction, an increase of 73.8% over last year;
· $127.4 million in industrial/other, a 51.5% increase over last year; and
· $106.5 million in manufactured housing, a 35.9% increase over last year.
Based on the strength of its year-to-date results, the company raised its targeted range for earnings per share growth to between 12% and 15% (previously it was between 10% and 14%). The company also reaffirmed its unit sales growth targeted range of between 10% and 14% for the year.
