GRAND RAPIDS, Mich. (News release) -- UFP Industries, Inc. (UFPI) announced Q2 2024 results including net sales of $1.9 billion, net earnings attributable to controlling interest of $126 million, and earnings per diluted share of $2.05.
"Our Q2 results were in line with expectations in a more challenging business cycle, and I am grateful for the efforts of all of our UFP teammates to adapt to this environment and adjust capacity to meet demand," said Chairman and CEO Matthew J. Missad. "The weaker environment and expected near-term softness in demand have enabled us to more aggressively pursue our long-term expansion plans and improvement strategies. These efforts include investments in automation and consolidating operations to eliminate redundancies, lower costs and enhance the profitability of each of our facilities. Additionally, we are using our strong balance sheet to stay on offense by investing in acquisitions, new ventures, new value-added products, and organic expansion, while returning capital to shareholders through our recently increased dividend and share repurchase program. Our long-term outlook for growth remains strong."
Net sales of $1.9 billion decreased 7% due to a 6% decrease in selling prices and a 1 percent decrease in organic unit sales. Quarter over quarter, the price of Southern Yellow Pine (SYP) decreased 19%, which contributed to our decrease in selling prices.
Net earnings attributable to controlling interests of $126 million represents a 16% decrease from last year.
Adjusted EBITDAof $204 million represents a decrease of 13% while adjusted EBITDA margin declined 80 basis points to 10.7%.
UFP Retail Solutions
Net sales of $809 million, down 14% compared to the second quarter of 2023, while gross profit increased 3%. Sales performance was attributable to a 7% decline in selling prices, a 5% decline in organic unit sales, and a 2% decline due to the transfer of certain product sales to the Packaging and Construction segments. Organic unit sales decreased 2% for Deckorators, 6% for ProWood and 4% for UFP-Edge. Overall, unit sales decreased 5% with big box customers, a decline that largely correlates with an easing in repair and remodel activity, and were flat with independent retailers. Gross profit for the retail segment increased 3% to $127 million, primarily due to operational improvements, SKU rationalization, and better inventory positioning and utilization of our managed inventory programs.
UFP Packaging
Net sales of $435 million were down 11% compared to the Q2 2023, due to an 8% decrease in selling prices and a 6% decline in organic unit sales, offset by a 3% increase from the transfer of certain product sales from the Retail segment. A 10% increase in organic unit sales for PalletOne, due to market share gains, partially offset an 11% decline in organic unit sales for Protective Packaging and a 12% decline in organic unit sales for Structural Packaging, attributable to weaker demand. Gross profit for the packaging segment decreased 29% to $84 million due to competitive price pressure and lower sales volumes.
UFP Construction
Net sales of $575 million increased 4% compared to the Q2 2023 as a 4% decrease in selling prices was offset by a 7% increase in organic unit sales and a 1% increase from the transfer of certain product sales from the Retail segment. Organic unit sales increased in Factory Built, up 19% due to an increase in industry production, and Site Built, up 4%, the Company believes due to market share gains in both existing and new product categories. Gross profit for the construction segment decreased 8% to $126 million due to competitive price pressure.
UFP Industries, Inc. is a holding company whose operating subsidiaries - UFP Packaging, UFP Construction and UFP Retail Solutions - manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide.
