UFP Industries (UFPI) 8-K Results of Operations and Financial Condition

Exhibit 99(a)

news release

--------------AT THE COMPANY--------------
Lynn Afendoulis
Director, Corporate Communications
616/365-1502

FOR IMMEDIATE RELEASE
MONDAY, JULY 17, 2006

Universal Forest Products Posts 20% Increase in 2^ndQuarter Net Earnings
Year-to-Date Earnings up 35%

GRAND RAPIDS, Mich., July 17, 2006 — Universal Forest Products (Nasdaq: UFPI) today announced a strong second quarter marked by net earnings of $27.3 million, an increase of 19.9% over the same period last year. Year-to-date net earnings were $43.2 million, a 34.9% increase over the first six months of 2005.

Net sales for the quarter were $826.8 million, up 6.1% over net sales of $779.6 million for the second quarter of 2005. Net sales for the first six months of 2006 were $1.49 billion, up 13.3% over net sales of $1.32 billion for the same period in 2005.

“Our strengths for the quarter included continued market share gains in the site-built construction and industrial markets where we again saw double-digit unit growth,” said CEO Michael B. Glenn.

Sales were adversely impacted by the lumber market, with prices down approximately 14% from the prior year quarter. The increase in earnings was driven by a combination of increased sales of value-added products and a continued focus on innovations and cost reductions. Value-added products made up 56% of total sales for the quarter, up from 50% for the same period last year.

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Universal Forest Products, Inc.
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“We’re continuing our strategy of focusing on sales of value-added products by growing our market share in site-built construction and industrial, as well as introducing products through our new division, Universal Consumer Products,” Glenn said.

By market, Universal posted second-quarter sales of:

• $349.5 million in D-I-Y/retail, up 1.4% compared to the same quarter last year;

• $227.8 million in site-built construction, an increase of 22.1% over the same quarter last year;

• $149.4 million in industrial, up 6.4% over the second quarter 2005; and

• $100.1 million in manufactured housing, a 7.2% decrease from the second quarter of 2005, which reflected a significant decline in lumber prices in 2006 of species relevant to this market.

OUTLOOK

The Company reaffirms its annual target for net earnings growth of 15% to 20% and its unit sales target of 10% to 15% growth in 2006 based upon the following assumptions:

• Stable housing markets where we have a strong site-built presence and continued opportunities for market share gains.

• Stability in our D-I-Y/retail and manufacturing housing markets, as well as in lumber prices.

• Favorable weather conditions for building and home improvement activities, particularly in the fourth quarter.

• Continuing to gain market share and realize strong unit sales growth in the industrial market.

• The completion of strategic business acquisitions.

Universal Forest Products will conduct a conference call to discuss information included in this news release and related matters at 11:00 a.m. EDT on Tuesday, July 18, 2006. The conference call will be hosted by CEO Michael B. Glenn and Executive Chairman William G. Currie and will be available for analysts and institutional investors domestically at (866) 383-8008 or internationally at (617) 597-5341. Use conference call ID #73805629.

The conference call will be available simultaneously, and in its entirety, to all interested investors and news media through a webcast athttp://www.ufpi.com. A replay of the call will be available through Wednesday, August 16, 2006 domestically at (888) 286-8010 or internationally at (617) 801-6888. Use replay ID # 22096875.

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Universal Forest Products, Inc.
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Universal Forest Products markets, manufactures and engineers wood and wood-alternative products for D-I-Y/retail home centers, structural lumber products for the manufactured housing industry, engineered wood components for the site-built construction market and specialty wood packaging for various industries. The Company also provides framing services for the site-built sector. The Company reported sales of nearly $2.7 billion in 2005. Universal has approximately 10,000 employees who work out of more than 100 locations. For information about Universal Forest Products, please visit the Company’s Web site athttp://www.ufpi.com, or call 888-Buy-UFPI.

Included in this report are certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are based on the beliefs of the Company’s management as well as on assumptions made by and information currently available to the Company at the time such statements were 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 are the following: Adverse lumber market trends, competitive activity, negative economic trends, government regulations, and weather. These risk factors and additional information are included in the Company’s reports on Form 10K and 10Q on file with the Securities and Exchange Commission.

HIGHLIGHTS TO FOLLOW

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
FOR THE SIX MONTHS ENDED
JUNE 2006/2005

	Quarter Period										Year to Date
(In thousands, except per share data)	2006					2005					2006					2005
NET SALES	$	826,847		100	%	$	779,552		100	%	$	1,492,456		100	%	$	1,316,712		100	%
COST OF GOODS SOLD		706,429		85.44			678,310		87.01			1,277,727		85.61			1,148,241		87.21
GROSS PROFIT		120,418		14.56			101,242		12.99			214,729		14.39			168,471		12.79
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		70,773		8.56			59,505		7.63			135,302		9.07			109,356		8.31
EARNINGS FROM OPERATIONS		49,645		6.00			41,737		5.35			79,427		5.32			59,115		4.49
OTHER EXPENSE (INCOME)
Interest expense		3,744		0.45			4,266		0.55			7,543		0.51			8,041		0.61
Interest income		(352	)	-0.04			(270	)	-0.03			(781	)	-0.05			(419	)	-0.03
Net (gain) loss on sale of real estate and interest in subsidiary		(63	)	-0.01			32		0.00			(63	)	0.00			(1,240	)	-0.09
		3,329		0.40			4,028		0.52			6,699		0.45			6,382		0.48
EARNINGS BEFORE INCOME TAXES AND MINORITY INTEREST		46,316		5.60			37,709		4.84			72,728		4.87			52,733		4.00
INCOME TAXES		17,885		2.16			14,237		1.83			27,641		1.85			19,996		1.52
EARNINGS BEFORE MINORITY INTEREST		28,431		3.44			23,472		3.01			45,087		3.02			32,737		2.49
MINORITY INTEREST		(1,117	)	-0.14			(682	)	-0.09			(1,907	)	-0.13			(718	)	-0.05
NET EARNINGS	$	27,314		3.30		$	22,790		2.92		$	43,180		2.89		$	32,019		2.43
EARNINGS PER SHARE — BASIC	$	1.45				$	1.24				$	2.31				$	1.75
EARNINGS PER SHARE — DILUTED	$	1.41				$	1.20				$	2.23				$	1.69
WEIGHTED AVERAGE SHARES OUTSTANDING		18,851					18,323					18,729					18,255
WEIGHTED AVERAGE SHARES OUTSTANDING WITH COMMON STOCK EQUIVALENTS		19,432					18,984					19,355					18,978

SUPPLEMENTAL SALES DATA

	Quarter Period										Year to Date
Market Classification	2006		%			2005		%			2006		%			2005		%
Do-It-Yourself/Retail	$	349,519		42	%	$	344,624		44	%	$	562,511		38	%	$	522,733		40	%
Site-Built Construction		227,830		28	%		186,626		24	%		437,588		29	%		337,549		26	%
Manufactured Housing		100,134		12	%		107,925		14	%		205,254		14	%		203,371		15	%
Industrial		149,364		18	%		140,377		18	%		287,103		19	%		253,059		19	%
Total	$	826,847		100	%	$	779,552		100	%	$	1,492,456		100	%	$	1,316,712		100	%

UNIVERSAL FOREST PRODUCTS, INC.
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CONSOLIDATED BALANCE SHEETS (UNAUDITED)
JUNE 2006/2005

(In thousands)	2006		2005
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	43,309	$	27,586
Accounts receivable		242,829		232,600
Inventories		246,810		247,829
Other current assets		22,495		13,114
TOTAL CURRENT ASSETS		555,443		521,129
OTHER ASSETS		8,003		8,056
INTANGIBLE ASSETS, NET		147,901		134,373
PROPERTY, PLANT AND EQUIPMENT, NET		227,995		222,304
TOTAL ASSETS	$	939,342	$	885,862

	2006		2005
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	247,524	$	229,835
Current portion of long-term debt and capital leases		902		21,937
TOTAL CURRENT LIABILITIES		248,426		251,772
LONG-TERM DEBT AND CAPITAL LEASES, less current portion		170,192		206,000
OTHER LIABILITIES		33,050		36,717
SHAREHOLDERS’ EQUITY		487,674		391,373
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	939,342	$	885,862

UNIVERSAL FOREST PRODUCTS, INC.
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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED
JUNE 2006/2005

(In thousands)	2006			2005
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	43,180		$	32,019
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation		16,730			15,200
Amortization of intangibles		2,151			1,190
Expense associated with share-based compensation arrangements		522			—
Expense associated with stock grant plans		177			133
Deferred income taxes		(867	)		(516	)
Minority interest		1,907			718
Loss (gain) on sale or impairment of property, plant and equipment		(183	)		(1,133	)
Changes in:
Accounts receivable		(57,246	)		(80,206	)
Inventories		7,768			(31,838	)
Accounts payable		39,426			50,881
Accrued liabilities and other		8,237			17,131
Excess tax benefits from share-based compensation arrangements		(3,866	)		—
NET CASH FROM OPERATING ACTIVITIES		57,936			3,579
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(16,234	)		(21,985	)
Acquisitions, net of cash received		(11,298	)		(7,500	)
Proceeds from sale of property, plant and equipment		565			2,318
Collection of notes receivable		1,600			323
Advances on notes receivable		(2,473	)		—
Insurance proceeds		38			3,013
Other, net		—			135
NET CASH FROM INVESTING ACTIVITIES		(27,802	)		(23,696	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) borrowings under revolving credit facilities		(40,000	)		21,140
Repayment of long-term debt		(325	)		(454	)
Proceeds from issuance of common stock		5,389			2,865
Distributions to minority shareholder		(930	)		(369	)
Dividends paid to shareholders		(1,035	)		(910	)
Excess tax benefits from share-based compensation arrangements		3,866			—
Other, net		(5	)		157
NET CASH FROM FINANCING ACTIVITIES		(33,040	)		22,429
NET CHANGE IN CASH AND CASH EQUIVALENTS		(2,906	)		2,312
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		46,215			25,274
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	43,309		$	27,586