UFP Industries, Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 28, 2024, net sales were $1,649,383,000, a decrease of 9.8% from $1,827,637,000 in Q3 2023. Similarly, net sales for the nine months ended September 28, 2024, totaled $5,190,308,000, down 8.8% from $5,694,031,000 in the prior year. The decline in sales was attributed to a combination of lower selling prices and reduced unit sales across all segments, particularly in retail and packaging.
Gross profit for Q3 2024 was $298,412,000, down from $364,400,000 in Q3 2023, reflecting a gross profit margin of 18.1%, compared to 19.9% in the prior year. Earnings from operations also fell to $119,926,000 from $167,332,000, indicating a decrease in operating margin from 9.2% to 7.3%. For the nine-month period, gross profit decreased to $987,233,000 from $1,122,796,000, with earnings from operations declining to $412,783,000 from $522,537,000.
Net earnings for Q3 2024 were $101,619,000, down from $134,183,000 in Q3 2023, while net earnings attributable to controlling interest decreased to $99,800,000 from $134,035,000. Basic earnings per share for Q3 2024 were $1.64, compared to $2.14 in the same quarter last year. For the nine months ended September 28, 2024, net earnings were $348,950,000, down from $410,549,000, with basic earnings per share decreasing from $6.55 to $5.66.
The company’s cash and cash equivalents increased to $1,190,807,000 as of September 28, 2024, from $957,000,000 at the end of September 2023. However, cash flows from operating activities decreased significantly to $497,662,000 from $711,803,000 in the same period last year, primarily due to a decrease in net working capital.
Strategically, UFP Industries completed the purchase of the remaining noncontrolling interest in a subsidiary for $8,400,000 during the quarter. The company is also focusing on capital expenditures, targeting $250-$300 million for 2024, with approximately $295 million already approved. Additionally, UFP Industries aims to enhance its capabilities and grow sales of value-added products, targeting a 12.5% adjusted EBITDA margin.
The company continues to face challenges from fluctuating lumber prices, which impact sales volume and profitability. UFP Industries is also exposed to market risks related to interest rates and foreign currency fluctuations.
About UFP INDUSTRIES INC
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