Release Details

GRAND RAPIDS, Mich., Apr 14, 2010 (BUSINESS WIRE) --Universal Forest Products, Inc. (Nasdaq: UFPI) today announced first-quarter 2010 net earnings of nearly $1 million, or $0.05 per diluted share, compared to a net loss of $1.2 million or $(0.06) per diluted share for the first quarter of 2009. The Company reported first-quarter net sales of $393.0 million, which compares favorably to 2009 first-quarter net sales of $361.7 million.

"While we're proud to deliver another quarter of improved profitability, we aren't satisfied with the rate of our sales increase and we continue to focus on strategies to grow our revenue," said CEO Michael B. Glenn. "We rarely talk about weather as a contributing factor to our results, but it clearly had an impact on our performance in the quarter."

From record cold temperatures in the Southeast to hurricane-force winds in California in January, and from record-breaking snowstorms in the Atlantic and Northeast regions to extreme precipitation in 20 states, the weather in the first quarter of 2010 in many parts of the country was not conducive to outdoor building projects, negatively affecting the Company's sales to DIY/retail and site-built customers.

"That said, we are pleased to be showing traction in our site-built business and healthy increases in both our industrial and manufactured housing markets," he added. "These results underscore the strength of our growth strategies, including diversification into new markets and products, and they give us momentum and optimism for our future."

After years of steady decline and record low prices, the composite lumber price (which affects the Company's costs and, ultimately, its selling prices) was up nearly 50% in the quarter over 2009, due to production curtailments and plant closures by mills. However, the Company expects the market to fluctuate throughout the year; consequently, it is focused on managing its purchasing and sales practices in order to mitigate the impact of volatile lumber prices on its gross margins, and on using its remanufacturing capabilities to ensure it has adequate supply for customers.

By market, Universal posted the following gross sales results for the first quarter of 2010:

Do-It-Yourself/retail: $164.4 million, a decrease of 1.9% from the same period of 2009. This mirrors the recent experience of big-box retailers, who in February reported flat sales, and same-store U.S. sales that were flat to slightly down in early 2010. Additionally, sales of products needed for larger DIY projects, like lumber, continued to be slow as wary consumers delayed larger expenditures. The Home Improvement Research Institute (HIRI) anticipates growth of 1.7% in this market in 2010, followed by 5% and 7% growth in 2011 and 2012, respectively. Universal agrees that 2010 will be another tough year, and is relying on the strength of its diverse portfolio of products and its customer relationships for steady performance in 2010, and for growing sales in 2011 and beyond.

Industrial packaging/components: $126.0 million, an increase of 20.4% over 2009. Strong performance in this market is attributable to a number of factors, including increased resources devoted to the market, the Company's dedicated efforts in concrete forming products and its strong foray into other packaging materials and supplies. This continues to be a market of great opportunity for Universal.

Site-built construction: $60.9 million, an increase of 0.9% over 2009. This follows a fourth-quarter decrease of more than 42%, reflecting, in part, the Company's focus on specific areas of promise, including commercial and military projects, and on remaining a preferred supplier to the country's more successful builders. Year-to-date housing starts in February were up nearly 9% over last year, including an increase of over 37% in single-family housing. The Company continues to believe that 2010 will be marked by a modest improvement in the market, and is focused on areas of opportunity in commercial and governmental projects.

Manufactured housing: $48.4 million, an increase of 32.2% over 2009. The Company attributes its performance in part to improved market activity, as well as to new products offered as part of its goal to expand the number of products it supplies for each manufactured home and recreational vehicle built.

OUTLOOK

The Company expects volatile economic and market conditions to prevail through 2010, limiting its ability to provide meaningful guidance for ranges of likely financial performance; therefore, the Company will not provide guidance for the foreseeable future. However, the Company remains optimistic about its performance in 2010, given its strong financial position, solid business model and diverse business opportunities that position it better than most to endure challenging times.

CONFERENCE CALL

Universal Forest Products will conduct a conference call to discuss information included in this news release and related matters at 8:30 a.m. ET on Thursday, April 15, 2010. The call will be hosted by CEO Michael B. Glenn and CFO Michael Cole, and will be available for analysts and institutional investors domestically at (800) 299-7635 or internationally at (617) 786-2901. Use conference pass code 56784725. The conference call will be available simultaneously and in its entirety to all interested investors and news media through a webcast at http://www.ufpi.com. A replay of the call will be available through Friday, May 14, 2010, domestically at (888) 286-8010 and internationally at (617) 801-6888. Use replay pass code 59696565.

UNIVERSAL FOREST PRODUCTS, INC.

Universal Forest Products, Inc. is a holding company that provides capital, management and administrative resources to subsidiaries that design, manufacture and market wood and wood-alternative products for DIY/retail home centers and other retailers, structural lumber and other products for the manufactured housing industry, engineered wood components for the site-built construction market, and specialty wood packaging and components and packing materials for various industries. Universal's subsidiaries also provide framing services for the site-built market, and forming products for concrete construction. The Company's consumer products subsidiary offers a large portfolio of outdoor living products, including wood composite decking, decorative balusters, post caps and plastic lattice. Its lawn and garden group offers an array of products, such as trellises and arches, to retailers nationwide. Founded in 1955, Universal Forest Products is headquartered in Grand Rapids, Mich., with operations throughout North America. For more about Universal Forest Products, go to www.ufpi.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, that are based on management's beliefs, assumptions, current expectations, estimates, and projections about the markets we serve, the economy, and the company itself. Words like "anticipates," "believes," "confident," "estimates," "expects," "forecasts," likely," "plans," "projects," "should," variations of such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict with regard to timing, extent, likelihood, and degree of occurrence.The Company does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are 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 from forward-looking statements are the following:Fluctuations in the price of lumber; adverse or unusual weather conditions; adverse conditions in the markets we serve; government regulations, particularly involving environmental and safety regulations; and our ability to make successful business acquisitions.Certain of these risk factors as well as other risk factors and additional information are included in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.

SOURCE: Universal Forest Products

Universal Forest Products, Inc.
Lynn Afendoulis
Director, Corporate Communications
(616) 365-1502