Universal Forest Products up on increased Q3 sales
Universal Forest Products, Inc. (Nasdaq: UFPI) shares are up after the lumberyard company reported after Wednesday’s close that its third-quarter net sales increased to $678.4 million, above analyst estimates of $471.2 million and from $672.9 million a year earlier. The firm’s earnings, however, declined to $11.3 million, or $0.59 per share, above Wall Street projections of $0.31 per share but below $17.7 million, or $0.91 per share, during the same period of 2006.
“We’re focused on building market share, managing our working capital, reducing costs, and enhancing our balance of business by adding new products and exploring new areas for growth,” CEO Michael Glenn said in a statement. “By focusing on these objectives, we’re positioning ourselves well for the market’s return to strength.”
Sales in the company’s do-it-yourself segment increased 11.2% during the quarter, but site-built construction sales fell 24%.
In a press release, Universal Forest Products said because it doesn’t believe the housing market will recover until 2009, the company is lowering its fiscal 2007 sales target to a range of $2.48 billion to $2.52 billion, from a previous range of $2.375 billion to $2.425 billion. The company also lowered its earnings targets to a range of $32 million to $35 million, from a previous outlook of $40 million to $42 million.
For the fourth quarter, the Grand Rapids, Mich.-based company expects net sales of between $480 million and $520 million and earnings in the range of breakeven to $3 million.
In morning trading, UFPI shares are up 6.14%, or $1.68, at $30.84. Over the last 52 weeks, shares have ranged from $28.95 to $54.61.
