UFPI Construction Sales Jump 35% in 2022 Q1
UFP Industries, Inc. (UFPI) reported first quarter net sales jumped 36% to company record $2.49 billion.
The Grand Rapids, Mich.-based company noted that first quarter sales were driven by a 26% increase in lumber prices, a 3% rise in organic sales, and a 7% increase in unit sales from acquisitions.
UFP Retail Solutions sales increased 31% to $993 million, which included a 19% increase in selling prices along with a 14% increase in unit sales from the acquisitions of Sunbelt Forest Products and Spartanburg Forest Products. Organic sales saw a 2% decline for the second quarter, however.
The company said the decline in organic unit sales is largely due to the return to more normal consumer buying habits in 2022 after the unusually high pandemic-related sales of pressure-treated lumber in the first quarter of 2021.
Organic unit sales fell 7% for Deckorators, primarily because of a 13% drop in sales of decking accessories, while composite decking sales rose 5%.
UFP Industrial sales jumped 36% to $611 million including a 39% increase in selling prices, a 1% increase in unit sales from acquisitions, but a 4% decline in organic unit growth.
UFP Construction sales soared 41% to $786 million and included a 26% increase in selling prices along with an 11% increase in organic growth.
The company noted that more than 75% of its residential construction sales were in areas such as Texas and the Mid-Atlantic, Southeast and Mountain West regions, which experienced significant population growth and are forecast to continue to grow.
First quarter net earnings rocketed up more than 82% to $193.1 billion from first quarter 2021 net earnings of $104.2 million.
The Bottom Line: A 26% increase in lumber prices help drive a sales increase of 36% as earnings over 82%.
What the CEO said: “The company’s reorganization in 2020 has given us a deeper level of focus and expertise in our diverse markets,” said CEO Matthew Missad. “We are increasingly the supplier of choice because we are unmatched in providing the value-added products and services businesses need to lower their costs and reduce their labor needs. We remain optimistic as this transformation is still underway and will continue to benefit our customers and company in the years to come.”
Company info: Click here to read UFP Industries’ full first quarter 2022 financial report.