Universal Forest Profit Rises, Yet Misses Estimate - Update

(RTTNews) - Lumber products company Universal Forest Products Inc (UFPI), Wednesday reported a 38 percent increase in second-quarter profit, helped by a near five percent growth in revenue. Results, however, missed Wall Street estimates.

The company said it is on track to achieve $3 billion in sales and operating margins at normal historical levels by 2017.

Grand Rapids, Michigan-based Universal Products posted quarterly net earnings of $21.8 million or $1.08 per share, compared with $15.8 million or $0.79 per share last year.

Analysts polled by Thomson Reuters expected the company to earn $1.32 per share for the quarter.

Earnings were reduced by $1.6 million for expected retroactive increases in U.S. duties assessed against a Chinese supplier of nails the company imported prior to March 2013.

Universal Forest provides capital and administrative resources to subsidiaries that supply wood, wood composite and other products.

The company's revenue for the quarter climbed 4.6 percent to $773 million from $738 million a year ago. Analysts expected revenue of about $863 million.

Universal Forest benefited from a more stable lumber market in the quarter. Among segments, retail sales for the quarter climbed 11 percent from a year ago, industrial sales rose 5 percent, while construction sales slid 4 percent.

UFPI closed Wednesday at $45.95, down $0.15 or 0.33%, on the Nasdaq. In after hours, the stock dropped $0.45 or 0.98%.