Universal Forest Products achieved mixed results in the third quarter, with the US housing market affecting its sales and earnings.
The company recorded net sales of US$678.4m during the period, an increase of US$5.5m year-on-year, and posted gross sales increases in three of its four markets, including; DIY, up 11.2% to US$268m; industrial, up 10.2% to US$156.6m; and manufactured/modular housing, up 18.2% to US$109.7m.
However, the US housing market continued to have a “broad impact” on the company and it saw self-build construction gross sales decline by 24% year-on-year to US$158.9m, with net earnings declining from US$17.7m in 2006 to US11.3m.
“We’re focused on building market share, managing our working capital, reducing costs and enhancing our balance of business,” said chief executive officer Michael Glenn.
“By focusing on these objectives, we’re positioning ourselves well for the market’s return to strength.”
Universal Forest Products said that it planned to “diversify its product mix” by selling components and building materials to the light commercial construction market and integrating Banks Lumber into its existing operations, adding that its 23 treatment plants help it to be the “leading supplier of pressure treated lumber to retailers”.
