UFP records profit in the second quarter
Grand Rapids, Mich.-based United Forest Products (UFP) announced second-quarter net earnings of $11.7 million, down 30.4 percent from $16.8 million in the same period last year.
The company recorded revenues of $708.5 million in the second quarter, down 8.4 percent from $773.1 million in the same period last year.
Predictably, the lower results were a result of a weak economy, soft lumber market and rising fuel costs, all factors affecting other forest products companies. Still, the company said it did gain market share and that its business remains “solid.”
“Despite the current market environment, we’re profitable, we’re gaining share in some key markets, and we’re concentrating on making sure we’re well-positioned for growth when the economy regains strength,” said president and CEO Michael B. Glenn, in a statement. “The fundamentals of our company remain solid and we’re pleased with our achievements in the face of extraordinary challenges.”
Glenn added the company is focusing on diversifying its business, as well as helping “mitigate the impact of rising fuel costs by passing them along.”
The company also predicted full-year revenue of $2.3 to $2.35 billion. The company expects year-end net earnings of between $12 million and $15 million, down from an earlier forecast of $22 million to $27 million.
UFP has locations across the U.S., Canada and Mexico, with operations in engineering, manufacturing, treating and distributing lumber and building materials.