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Universal Forest Products posts record results for 2001

¡¾Jan.29, 2002¡¿

Universal Forest Products posts record results for 2001
01/28/2002 , PRNewswire

Universal Forest Products, Inc. Posts Record 2001 Results; Reports 25% Increase in Fourth Quarter Earnings
GRAND RAPIDS, Mich., Jan. 28, 2002 (PRNewswire-FirstCall/press release) -- Universal Forest Products, Inc. (Nasdaq: UFPI) today announced record fourth quarter net earnings of $4.1 million or $0.20 per share (diluted), a 25% increase over net earnings of $3.3 million or $0.16 per share (diluted) reported for the fourth quarter of 2000. Net sales for the quarter were $329.3 million, an increase of 16.6% over net sales of $282.3 million reported for the same quarter last year.

For the year ended December 29, 2001, net earnings were $33.1 million or $1.63 per share (diluted) compared to $30.4 million or $1.49 per share (diluted) a year ago. Net sales for the year were $1.53 billion, a 10.3% increase over net sales of $1.39 billion in 2000.

"We are pleased to have achieved such strong results in a year when the economy and many of our markets presented so many challenges," said William G. Currie, UFPI's chief executive officer. "Our diversity, commitment to serving our customers, and sound acquisitions have allowed us to continue to grow despite price deflation in the wood fiber market, a soft manufactured housing market, and a depressed economy. Our performance this year is a tribute to the incredible employees of Universal, who remain focused on our goals and who exhibit a strong work ethic and sense of perseverance."

Currie added that favorable weather conditions in the fourth quarter helped drive strong sales to the Do-It-Yourself ("D-I-Y") market in many areas of the United States.

By market, Universal posted annual sales of:

* $739.1 million in retail D-I-Y, up 11.9% from 2000;

* $308.8 million in site-built construction, an increase of 26.6% over 2000;

*$280.5 million in manufactured housing, down only 3.8% from 2000, despite a decrease in industry production of almost 25%; and

*$202.0 million in industrial/agricultural, up 5.5% over 2000.

OUTLOOK

In January 2002, Universal completed the previously announced redemption of shares from its chairman of the board, Peter F. Secchia. Universal purchased two million shares from Chairman Secchia at a price of $18.00 per share. This transaction gave the Company the opportunity to acquire shares at an attractive purchase price and was consistent with the objectives of its previously announced share repurchase program.

The stock buy back is expected to redirect financial resources from acquisitions, which have been a key component to the Company's growth strategy, for most of 2002. Other key assumptions with respect to the Company's 2002 outlook include:

A commodity lumber market that remains stabilized;

A manufactured housing market that has already reached its low point for shipments and will experience a slight recovery;

A D-I-Y market that shows slow to moderate growth; and

A site-built housing market that will be soft for at least the first six months of the year.

With the factors expressed above in mind, the Company has targeted the following for 2002:

An increase in sales of 6% to 10%;

An increase in EPS of 18% to 22%, which includes the effect of changes in accounting for goodwill, other intangible assets and related amortization.

UNIVERSAL HONORED BY FORBES

In early January, Universal was named to Forbes magazine's Platinum 400, an annual ranking of the 400 best-performing U.S. companies with more than $1 billion in annual revenue. "We are honored to be chosen by Forbes magazine as one of the top companies in 2001, which is a reflection of the talents of our management team," said Peter F. Secchia, UFPI's chairman of the board.

Universal Forest Products will conduct a conference call to discuss information in this news release and related matters at 11:00 a.m. EST on Tuesday, January 29, 2002. The conference call will be hosted by William G. Currie and Michael R. Cole and will be available for analysts and institutional investors domestically at 800-482-2239 or internationally at 303-267-1002. Use conference call I.D. #1439502. The conference call will be available simultaneously, and in its entirety, to all interested investors and news media through a webcast at www.ufpi.com . Click on "investor relations" then "live webcast."

Universal Forest Products markets, manufactures, and engineers products for D-I-Y retail home centers, structural lumber products for the manufactured housing industry, engineered wood components for the site-built construction market and specialty wood packaging for various industries. For information about Universal Forest Products on the Internet, please contact the Company's web site at www.ufpi.com , or call 888-Buy-UFPI.

Included in this report are certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are based on the beliefs of the Company's management as well as on assumptions made by and information currently available to the Company at the time such statements were made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Among the factors that could cause actual results to differ materially are the following: Adverse lumber market trends, competitive activity, negative economic trends, government regulations, and weather. These risk factors and additional information are included in the Company's reports on Form 10K and 10Q on file with the Securities and Exchange Commission.