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
WEDNESDAY, OCTOBER 17, 2007

Universal posts net sales increase for third quarter despite impact of housing market
Company sees double-digit increases in sales to three of four markets

GRAND RAPIDS, Mich., October 17, 2007 – Universal Forest Products, Inc. (Nasdaq: UFPI) today announced results for the third quarter of 2007 including net sales of $678.4 million, an increase of $5.5 million over net sales of $672.9 million for the same period of 2006. Net earnings were $11.3 million, down from $17.7 million for the third quarter of 2006. Diluted earnings per share for the quarter were $0.59, down from $0.91 for the same period last year.

While Universal saw double-digit sales increases in three of its four markets, the drop in the housing market continued to have broad impact, especially in hard-hit areas like California, Colorado and Florida, and was responsible for the Company’s decline in earnings.

“We’re focused on building market share, managing our working capital, reducing costs, and enhancing our balance of business by adding new products and exploring new areas for growth. We’re also seeing promising opportunities to grow our business with new customers and markets, and we’re achieving positive results from our continuous improvement initiatives,” said President and CEO Michael B. Glenn. “By focusing on these objectives, we’re positioning ourselves well for the market’s return to strength.”

By market, Universal posted the following gross sales results for the third quarter:

• $268.0 million in Do-It-Yourself/retail (DIY), an increase of 11.2% over 2006;

• $158.9 million in site-built construction, a decrease of 24.0% from 2006;

• $156.6 million in industrial, an increase of 10.2% over 2006; and

• $109.7 million in manufactured/modular housing, an increase of 18.2% over 2006.

Sales increases in DIY, industrial and manufactured housing were due to market share gains. The decline in site-built sales was due to a severe drop in housing starts coupled with intense price competition, which affected profitability. The lumber market had little impact on sales levels for the quarter.

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Universal Forest Products, Inc.
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The Company continues to diversify its product mix and strengthen its market position by targeting the following areas:

• Selling components and building materials into multi-family and light-commercial construction;

• Increasing penetration with national customers in the industrial market;

• Concrete forming products for high-rise buildings, bridges, parking garages, stadiums and other large structures;

• The successful integration of Banks Lumber, a significant manufactured housing supplier that Universal acquired in late 2006. Universal is well-positioned for a rebound in that market; and

• Increased sales of consumer products, including composite decking and railing products and a strong portfolio of accessories such as post caps, decorative balusters and lattice. In addition, with 23 treating plants nationwide, Universal continues to be the leading supplier of pressure-treated lumber to retailers coast-to-coast.

OUTLOOK
With the continued impact of the weak housing market on many sectors of the economy and the Company’s prediction that recovery won’t begin until 2009, and based on current economic conditions, the Company is revising its annual net sales target to a range of $2.48 billion to $2.52 billion and its net earnings target to a range of $32.0 million to $35.0 million in 2007. This implies the following targets for the fourth quarter of 2007: net sales of $480.0 million to $520.0 million and net earnings of break-even to $3.0 million. By comparison, net sales and net earnings for the fourth quarter of 2006 were $499.2 million and $9.2 million, respectively. Excluding certain nonrecurring tax adjustments, net earnings were approximately $5.8 million in the fourth quarter of 2006.

These targets are based on the following assumptions:

• Continued challenging conditions in site-built construction;

• Manufactured housing production remains stable for the remainder of the year;

• The Company continues to achieve market share gains in DIY/retail, industrial and site-built;

• Weak consumer spending continues to challenge the DIY/retail market;

• No events occur that result in asset impairment charges; and

• The lumber market continues at present levels for the balance of the year.

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Universal Forest Products, Inc.
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Universal Forest Products will conduct a conference call to discuss information included in this news release and related matters at 8:30 a.m. EST on Thursday, October 18, 2007. The call will be hosted by Executive Chairman William G. Currie, President and CEO Michael B. Glenn and CFO Michael Cole, and will be available for analysts and institutional investors domestically at (800) 901-5231 or internationally at (617) 786-2961. Use conference pass code #84571336. The conference call will be available simultaneously and in its entirety to all interested investors and news media through a Web cast athttp://www.ufpi.com. A replay of the call will be available through Sunday, November 18, 2007, domestically at (888) 286-8010 and internationally at (617) 801-6888. Use replay pass code #25356962.

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 and forms for concrete construction. The Company reported sales of nearly $2.66 billion in 2006. Universal has approximately 8,000 employees who work out of approximately 100 locations in North America. For information about Universal Forest Products, visithttp://www.ufpi.com or call 888-Buy-UFPI.

Please be aware that: Any statements included in this call that are not historical are forward-looking statements within the meaning of 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. The Company does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are 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.

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UNIVERSAL FOREST PRODUCTS, INC.
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CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
FOR THE NINE MONTHS ENDED
SEPTEMBER 2007/2006

	Quarter Period										Year to Date
(In thousands, except per share data)	2007					2006					2007					2006
NET SALES	$	678,398		100	%	$	672,873		100	%	$	2,000,541		100	%	$	2,165,329		100	%
COST OF GOODS SOLD		596,233		87.89			574,048		85.31			1,743,151		87.13			1,851,775		85.52
GROSS PROFIT		82,165		12.11			98,825		14.69			257,390		12.87			313,554		14.48
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		58,783		8.66			65,970		9.80			192,623		9.63			201,272		9.30
EARNINGS FROM OPERATIONS		23,382		3.45			32,855		4.88			64,767		3.24			112,282		5.19
OTHER EXPENSE (INCOME)
Interest expense		4,367		0.64			3,214		0.48			13,457		0.67			10,757		0.50
Interest income		(494	)	-0.07			(875	)	-0.13			(1,634	)	-0.08			(1,656	)	-0.08
Net (gain) loss on sale of real estate		9		0.00			—		0.00			(324	)	-0.02			(63	)	0.00
		3,882		0.57			2,339		0.35			11,499		0.57			9,038		0.42
EARNINGS BEFORE INCOME TAXES AND MINORITY INTEREST		19,500		2.87			30,516		4.54			53,268		2.66			103,244		4.77
INCOME TAXES		7,383		1.09			11,322		1.68			19,633		0.98			38,963		1.80
EARNINGS BEFORE MINORITY INTEREST		12,117		1.79			19,194		2.85			33,635		1.68			64,281		2.97
MINORITY INTEREST		(778	)	-0.11			(1,489	)	-0.22			(1,610	)	-0.08			(3,396	)	-0.16
NET EARNINGS	$	11,339		1.67		$	17,705		2.63		$	32,025		1.60		$	60,885		2.81
EARNINGS PER SHARE — BASIC	$	0.59				$	0.94				$	1.68				$	3.24
EARNINGS PER SHARE — DILUTED	$	0.59				$	0.91				$	1.65				$	3.14
WEIGHTED AVERAGE SHARES OUTSTANDING		19,097					18,906					19,070					18,788
WEIGHTED AVERAGE SHARES OUTSTANDING WITH COMMON STOCK EQUIVALENTS		19,361					19,394					19,419					19,368

SUPPLEMENTAL SALES DATA

	Quarter Period												Year to Date
Market Classification	2007			%			2006			%			2007			%			2006			%
Do-It-Yourself/Retail	$	268,023			39	%	$	241,034			35	%	$	825,041			41	%	$	812,338			37	%
Site-Built Construction		158,940			23	%		209,015			30	%		459,751			22	%		653,445			29	%
Industrial		156,549			22	%		142,009			21	%		452,442			22	%		433,601			20	%
Manufactured Housing		109,656			16	%		92,778			14	%		303,157			15	%		301,241			14	%
Total Gross Sales		693,168			100	%		684,836			100	%		2,040,391			100	%		2,200,625			100	%
Sales Allowances		(14,770	)					(11,963	)					(39,850	)					(35,296	)
Total Net Sales	$	678,398					$	672,873					$	2,000,541					$	2,165,329

UNIVERSAL FOREST PRODUCTS, INC.
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CONSOLIDATED BALANCE SHEETS (UNAUDITED)
SEPTEMBER 2007/2006

(In thousands)

					LIABILITIES AND
ASSETS	2007		2006		SHAREHOLDERS' EQUITY	2007		2006
CURRENT ASSETS					CURRENT LIABILITIES
Cash and cash equivalents	$	46,747	$	46,184	Accounts payable	$	105,938	$	109,581
Accounts receivable		191,023		227,428	Accrued liabilities		85,997		106,360
Inventories		228,799		232,884
Assets held for sale		18,111			Current portion of long-term   debt and capital leases		1,086		697
Other current assets		31,669		24,752
TOTAL CURRENT ASSETS		516,349		531,248	TOTAL CURRENT LIABILITIES		193,021		216,638
OTHER ASSETS		7,744		7,762	LONG-TERM DEBT AND CAPITAL LEASES, less current portion		197,435		171,009
INTANGIBLE ASSETS, NET		184,474		158,549	OTHER LIABILITIES		50,168		35,937
PROPERTY, PLANT AND EQUIPMENT, NET		283,179		232,428	SHAREHOLDERS' EQUITY		551,122		506,403
TOTAL ASSETS	$	991,746	$	929,987	TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	991,746	$	929,987

UNIVERSAL FOREST PRODUCTS, INC.
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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED
SEPTEMBER 2007/2006

(In thousands)	2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	32,025		$	60,885
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation		29,105			25,558
Amortization of intangibles		6,402			3,953
Expense associated with share-based compensation arrangements		391			691
Expense associated with stock grant plans		160			191
Deferred income taxes		(255	)		(871	)
Minority interest		1,610			3,396
Gain on sale of interest in subsidiary		(140	)		—
Loss (gain) on sale or impairment of property, plant and equipment		32			206
Changes in:
Accounts receivable		(30,298	)		(37,947	)
Inventories		34,736			23,693
Accounts payable		12,874			771
Accrued liabilities and other		(5,483	)		11,326
Excess tax benefits from share-based compensation arrangements		(745	)		(3,959	)
NET CASH FROM OPERATING ACTIVITIES		80,414			87,893
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(26,909	)		(27,600	)
Acquisitions, net of cash received		(57,087	)		(27,137	)
Proceeds from sale of interest in subsidiary		400			—
Proceeds from sale of property, plant and equipment		3,551			506
Advances on notes receivable		(122	)		(2,473	)
Collection of notes receivable		151			1,612
Other, net		(6	)		44
NET CASH FROM INVESTING ACTIVITIES		(80,022	)		(55,048	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) borrowings under revolving credit facilities		27,204			(38,725	)
Repayment of long-term debt		(28,200	)		(1,201	)
Proceeds from issuance of common stock		3,321			5,711
Distributions to minority shareholder		(1,225	)		(1,569	)
Dividends paid to shareholders		(1,047	)		(1,035	)
Repurchase of common stock		(5,273	)		—
Excess tax benefits from share-based compensation arrangements		745			3,959
Other, net		(278	)		(16	)
NET CASH FROM FINANCING ACTIVITIES		(4,753	)		(32,876	)
NET CHANGE IN CASH AND CASH EQUIVALENTS		(4,361	)		(31	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		51,108			46,215
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	46,747		$	46,184