Universal Forest Products, Inc. (NASDAQ: UFPI) stock lost over 10.7% on October 17th, 2018 (as of 10:55 AM GMT-4; Source: Google finance) on the back of mixed results for the third quarter of FY 18. UFPI in the third quarter of FY 18 has reported the adjusted earnings per share of 66 cents, missing the analysts’ estimates for the adjusted earnings per share of 73 cents. The company had reported the adjusted revenue growth of 15 percent to $1.21 billion in the third quarter of FY 18, beating the analysts’ estimates for revenue of $1.19 billion.
The company’s net earnings attributable to controlling interest were $41.2 million, up 22 percent. Further, gross sales increased 17 percent in the Construction market, 15 percent in the Industrial market and 13 percent in the Retail market. Unit sales had contributed 7 percent of gross sales growth; higher prices due to the lumber market contributed 8 percent. Organic sales contributed 5 percent to unit growth while acquisitions added 2 percent. New product sales were $138 million, up 22 percent; year-to date new product sales are $407 million, up 25 percent
UFPI’s subsidiaries has closed on the purchase of the operating assets of North American Container Corp. (NACC), which is a Marietta, Ga.-based manufacturer of structural packaging products. The previously announced acquisition expands Universal’s capabilities and market opportunities by adding steel, corrugated and hardwood packaging to its growing portfolio of industrial products. NACC has nine manufacturing facilities in Georgia, South Carolina, Tennessee and Wisconsin. Founded in 1967, it had sales of approximately $71 million in 2017. NACC offers several proprietary packaging designs and holds a number of patents. The acquisition enhances Universal’s capacity and allows the company to expand into geographic areas identified as opportunities for growth, including South Carolina and Tennessee; offer existing and targeted customers additional solutions for packaging and crating needs; enhance manufacturing through automation; and offer customers the opportunity to purchase corrugated, steel and lumber packaging from a single supplier, among other benefits.
Meanwhile, Universal also noted that it has climbed to number 610 on the Fortune 1000, the publication’s list of the largest companies in the United States based on annual revenue. The ranking marks the sixth consecutive year in which Universal has raised its ranking in the Fortune 1000 and makes UFPI one of the biggest climbers on the 2018 list.