GRAND RAPIDS, Mich. - UFP Industries, Inc. (NASDAQ:UFPI) reported third quarter earnings that fell short of analyst expectations as the company faced softer demand and pricing pressure across its business segments.
The wood products manufacturer posted net earnings of $100 million, or $1.64 per diluted share, down from $134 million, or $2.10 per share, in the same quarter last year. Analysts had forecast earnings of $1.89 per share.
Revenue declined 10% year-over-year to $1.65 billion, below the consensus estimate of $1.77 billion. The company said the decrease was due to a 3% drop in organic unit sales and a 7% decrease in selling prices.
"Our third quarter results were impacted by softer demand and broad-based pricing pressure which reduced our revenue and profit margins," said CEO Matthew J. Missad. "We are managing through these ongoing challenges by operating more efficiently, aligning our overhead with lower demand levels and eliminating unnecessary costs."
By segment, UFP Retail Solutions saw sales fall 13% to $636 million, while UFP Packaging (NYSE:PKG) revenue dropped 11% to $402 million. The UFP Construction segment reported an 8% sales decline to $535 million.
Looking ahead, the company expects challenging conditions to persist through the remainder of 2024 and into 2025, resulting in softer year-over-year comparisons. However, Missad said UFP is "well positioned to capitalize on opportunities when markets recover" and remains on track to achieve longer-term profitability targets.
The company ended the quarter with $1.19 billion in cash, up from $957 million a year ago. UFP's board approved a 10% increase in its quarterly dividend to $0.33 per share.
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