GRAND RAPIDS, Mich. — UFP Industries reported net sales of $1.65 billion, a decrease of 10 percent for the third quarter versus the same period last year.

The company attributed the sales decline to a 3 percent decrease in organic unit sales and a 7 percent decrease in selling prices. According to UFPI, the price of Southern Yellow Pine (SYP), which comprises approximately two-thirds of its lumber purchases, decreased 21 percent and contributed to the 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 Matthew Missad, chairman and CEO. “We are managing through these ongoing challenges by operating more efficiently, aligning our overhead with lower demand levels and eliminating unnecessary costs. I am confident our teammates will respond appropriately to the changing economy while enhancing the pursuit of our strategic priorities. While we expect conditions to remain challenging as we move into 2025, we are well positioned to capitalize on opportunities when markets recover and remain on track to achieve our longer-term profitability targets.”

UFPI said it continues to pursue strategic acquisitions in addition to planning to invest in organic growth opportunities. The company reportedly has $1.19 billion in cash as of Sept. 28 compared to $957 million at the end of the third quarter in 2023. UFPI said it has targeted approximately $1 billion in capital investments over the next five years, including capital investments in 2024 of up to $300 million for automation, technology upgrades, geographic expansion and increased capacity at existing facilities, specifically for its Deckorators, Site Built, structural and protective packaging, and machine-built pallet businesses. Approximately $295 million in capital projects have been approved in 2024 and another $55 million are pending approval.

“When the economy slows, it also creates opportunities to obtain more appropriate pricing on strategic acquisitions; invest in new products, automation and technology; and pursue organic expansion. We plan to leverage our strong balance sheet and free cash flow generation to pursue growth initiatives that drive ROI and expand our market share, while pursuing share buybacks when our stock is at an attractive level.”