Leading building products manufacturer and supplier
Universal Forest Products, Inc.
) recently completed purchasing the assets of MSR Forest Products,
LLC, an Alabama-based manufactured housing product distributor.
However, the terms of the deal remain undisclosed for the time
Following the agreement, the company's Alabama based services
will be merged with the business of MSR to augment Universal
Forest's productivity and future growth. It is also expected that
the integration will help in reducing the company's operating
Furthermore, the current deal is a smart strategic move, as it
will play a key role in reinstating Universal Forest's position in
the manufactured housing market. The company is also hopeful that
the deal will help it improve its service offerings in the years
Earlier, Universal Forest's net sales in the first quarter of
fiscal 2012 grew 18% year over year to $457.1 million. The
company's product demand in all end markets augmented mainly due to
favorable weather conditions. In addition, every segment of
Universal Forest reported high revenue growth in the quarter.
Universal Forest, encouraged by the first quarter results, is
highly optimistic about seeing positive demand growth in the second
quarter of fiscal 2012. However it should be aware of the tough
competition prevalent in the industry. Ominous rivals here include
Bluelinx Holdings Inc.
Builders FirstSource Inc.
The current Zacks Consensus Estimates for Universal Forest
is 68 cents for the second quarter of 2012 and $1.39 for
fiscal 2012. The company currently retains a Zacks #1 Rank, which
translates into a short-term Strong-Buy rating. We maintain a
long-term Neutral recommendation on the stock.
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