GRAND RAPIDS, Mich. – UFP Industries (UFPI) reported earnings on operations of $647 million on net sales of $7.2 billion in 2023, a decrease of 25 percent and 32 percent respectively from the company’s record year of 2022.

The company attributed the sales decline mainly to a 16 percent decrease in prices and a 9 percent decrease in organic unit sales. In addition, one less week of operating activity in 2023 resulted in a 1 percent unit decline.

UFPI, a holding company, experienced sales declines in each of its three business segments for 2023, including:

• UFP Retail Solutions -- $2.87 billion in net sales, down 21 percent from 2022;
• UFP Packaging -- $1.84 billion in net sales, down 23 percent from 2022; and
• UFP Construction -- $2.16 billion in net sales, down 31 percent from 2022.

"Our teammates produced solid results in 2023 and built the foundation for future growth in sales and profits," said Chairman and CEO Matthew Missad. "Our operating margins and robust cash flow continue to surpass historic levels and allow us to remain on offense. We have the capital to make significant investments to grow, both organically and through acquisitions, while continuing to enhance our value-added product offering. This gives us the confidence to raise our long-term targets for growth and profitability."

UFPI entered 2024 with $841.9 million in net surplus cash compared to $281.3 million in net surplus cash at year-end 2022. In addition, the company had more than $2.4 billion of liquidity at year-end 2023.

UFPI said it plans to continue to seek strategic acquisitions that drive its long-term growth and margin improvements, enhance its capabilities, and create incremental value for its customers and shareholders. In September 2023, UFPI acquired Palets Suller Group, a manufacturer of machine-built pallets based in Castellón, Spain, for approximately $52 million.

The company also expects to invest $250 million to $300 million in capital expenditures this year including expanding capacity for its Deckorators line in the Northeastern U.S., its site-built construction business in the Western U.S., and its packaging business nationally. Last year the company spent about $180 million on capital expenditures.

"As we look to 2024, we expect market conditions to remain challenging in the first half of the year before improving in the second half," Missad added. "We are committed to make each aspect of our business better as we work toward greater efficiencies, lower costs and more innovative products and services. The team’s commitment to winning contributed greatly to our success in 2023 and positions us well for the future."

Among its five-year financial goals, UFPI seeks to achieve compounded annual unit sales growth of 7-10 percent. Smaller tuck-in acquisitions are intended to contribute to this goal.

UFPI manufactures, distributes and sells a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. The company operates affiliates in North America, Europe, Asia and Australia. UFPI is ranked #403 on the Fortune 500 and #128 on Industry Week’s list of America’s Largest Manufacturers.