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, July 16, 2008

Universal Forest Products, Inc. reports EPS of $0.61; posts net earnings of $11.7 million
Results impacted by high fuel cost and weak economy

GRAND RAPIDS, Mich., July 16, 2008 – Universal Forest Products, Inc. (Nasdaq: UFPI) today announced its results for the second quarter of 2008. Net earnings in the quarter were $11.7 million, which compared to net earnings of $16.8 million for the same period last year. Diluted earnings per share for the second quarter were $0.61, down from $0.86 for the same period last year. Second-quarter net sales were $708.5 million, down from $773.1 million for the second quarter of 2007, and were impacted by a weak economy and a soft lumber market. Margins were impacted by higher fuel and other transportation costs and ongoing price pressure, particularly in the site-built construction market.

“Despite the current market environment, we’re profitable, we’re gaining share in some key markets, and we’re concentrating on making sure we’re well-positioned for growth when the economy regains strength,” said President and CEO Michael B. Glenn. “The fundamentals of our company remain solid and we’re pleased with our achievements in the face of extraordinary challenges.”

Glenn added that the Company remains focused on increasing diversification, containing costs through continuous improvement, growing market share and ensuring the organization is sized appropriately to its business opportunities. The Company is working to mitigate the impact of rising fuel costs by passing them along.

In addition to rising fuel costs, weak consumer spending and ongoing price pressure, the quarter saw depressed lumber prices, which impact the Company’s selling prices. The year-to-date composite lumber price was 8.5% lower for the second quarter than the same period last year.

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Universal Forest Products, Inc.
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By market, Universal posted the following gross sales results for the second quarter:

Do-It-Yourself/retail: $334.7 million, a decrease of 7.1% from the same period of 2007.The Company picked up market share by leveraging its competitive advantages and adding to its vast portfolio of lumber and outdoor living products. Sales, however, were impacted by weak consumer spending, reflected in a Consumer Confidence Index that plunged to near-record lows in the quarter and lower same-store sales at two big box retailers. Most experts call for continued decline in home improvement spending through 2008, and for moderate growth in 2009 and beyond.

Industrial packaging/components: $174.0 million, an increase of 6.4% over 2007.The industrial market remains a strong opportunity, even though in the short term it is being affected by a challenged economy. Universal continues to add customers and to be encouraged by opportunities for market share gains in this arena. The concrete forming business is having a positive impact. Most of the markets served by concrete forming saw solid year-to-date growth through May 2008. These markets include nonresidential construction in health care, public safety, lodging, power, office buildings and other areas.

Site-built construction: $132.8 million, a decrease of 17.7% from the same period of 2007.These results are in spite of declines in single-family housing starts of 43.9% and 41.8%, respectively, in April 2008 and May 2008 over the same months in 2007. The Company believes the housing market won’t begin a recovery until 2010, and believes tighter credit conditions will have a negative impact on multi-family and light construction, which performed well in 2007. However, the Company believes it can continue to take share and is focused on diversification by growing its custom builder, light-commercial and multifamily business, on cutting costs and on enhancing efficiency through continuous improvement.

Manufactured housing: $84.2 million, a decrease of 20.2% from 2007.The 1.4% uptick in shipments of HUD-code homes in April 2008 over April 2007 didn’t hold for the balance of the quarter. Shipments in May 2008 were approximately 15% lower than May 2007. May 2008 year-to-date shipments declined 5.1% from May 2007. The Manufactured Housing Institute recently revised its forecast downward by 3%, calling for annual shipments of 96,000 homes. Shipments of modular homes were down 27% in the first quarter of 2008 from the same period of 2007, the most recent statistics available. With its commanding market share, Universal’s performance will essentially track with the market. The Company expects conditions to remain soft until the oversupply of site-built homes is absorbed and credit conditions improve, and believes passage of a lending reform package is critical to any near-term pickup in this market.

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Universal Forest Products, Inc.
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OUTLOOK
In February, the Company announced 2008 targets based on assumptions about markets, economic conditions and other relevant factors; however, some of those assumptions have not held: Diminished consumer spending impacted DIY/retail more than anticipated; the over-supply of affordable site-built homes and the lack of conventional financing options have both hampered manufactured housing; and the industrial market slowed with the weakening economy and will be negatively impacted by any ongoing economic downturn. In addition, rising fuel prices are significantly impacting transportation costs in all of its markets.

Based on these factors, the Company has adjusted its annual targets for 2008 as follows: net sales of between $2.3 billion and $2.35 billion (from the previous target of $2.45 billion to $2.55 billion), and net earnings of between $12 million and $15 million (from $22 million to $27 million). These targets are based on the following additional key assumptions:

• The Company will maintain strong market share in each of its markets, and will grow market share in DIY/retail, industrial and site-built construction.

• Margins will continue to be negatively impacted by price pressure and by rising fuel costs.

• Lumber mill closures may better align supply and demand, but weak demand overall will keep the lumber market depressed for the balance of the year, affecting the Company’s selling prices.

• Any asset impairment, severance or other charges incurred as the result of plant closures, consolidations or the downsizing of a Company operation are not reflected in the Company’s sales or earnings targets. If the Company takes such actions, its ability to meet the stated targets will be diminished.

CONFERENCE CALL
Universal Forest Products will conduct a conference call to discuss information included in this news release and related matters at 8:30 a.m. EDT on Thursday, July 17, 2008. The call will be hosted by Executive Chairman William G. Currie, President and CEO Michael B. Glenn, and Chief Financial Officer Michael Cole, and will be available for analysts and institutional investors domestically at (866) 271-6130 or internationally at (617) 213-8894. Use conference pass code number 74868685. 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 Monday, August 18, 2008, domestically at (888) 286-8010 and internationally at (617) 801-6888. Use replay pass code number 74131382.

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Universal Forest Products, Inc.
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UNIVERSAL FOREST PRODUCTS
Headquartered in Grand Rapids, MI, with approximately 100 facilities throughout North America, Universal Forest Products engineers, manufactures and markets wood and wood-alternative products for DIY retail home centers, structural lumber products for the manufactured housing industry, engineered wood components for the site-built construction market, and specialty wood packaging and components for various industries. The Company also provides framing services for the site-built market, and forms for concrete construction. For 2007, the Company reported sales of more than $2.5 billion. For information about Universal Forest Products, visitwww.ufpi.com.

Please be aware that: Any statements included in this press release that are not historical facts 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 from forward-looking statements are the following: Adverse lumber market trends, competitive activity, negative economic trends, government regulations and weather. Certain of these risk factors and additional information are included in the Company’s reports on Form 10-K and 10-Q 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 SIX MONTHS ENDED
JUNE 2008/2007

	Quarter Period												Year to Date
(In thousands, except per share data)	2008						2007						2008						2007
NET SALES	$	708,485			100	%	$	773,105			100	%	$	1,197,997			100	%	$	1,322,143			100	%
COST OF GOODS SOLD		623,607			88.0			671,400			86.8			1,058,299			88.3			1,146,918			86.7
GROSS PROFIT		84,878			12.0			101,705			13.2			139,698			11.7			175,225			13.3
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		62,120			8.8			70,049			9.1			121,471			10.1			133,507			10.1
EARNINGS FROM OPERATIONS		22,758			3.2			31,656			4.1			18,227			1.5			41,718			3.2
Interest expense		3,290			0.5			4,766			0.6			6,884			0.6			9,090			0.7
Interest income		(179	)		—			(558	)		(0.1	)		(552	)		—			(1,140	)		(0.1	)
		3,111			0.4			4,208			0.5			6,332			0.5			7,950			0.6
EARNINGS BEFORE INCOME TAXES AND MINORITY INTEREST		19,647			2.8			27,448			3.6			11,895			1.0			33,768			2.6
INCOME TAXES		7,470			1.1			10,182			1.3			4,120			0.3			12,250			0.9
EARNINGS BEFORE MINORITY INTEREST		12,177			1.7			17,266			2.2			7,775			0.6			21,518			1.6
MINORITY INTEREST		(514	)		(0.1	)		(466	)		(0.1	)		(688	)		(0.1	)		(832	)		(0.1	)
NET EARNINGS	$	11,663			1.6		$	16,800			2.2		$	7,087			0.6		$	20,686			1.6
EARNINGS PER SHARE — BASIC	$	0.61					$	0.88					$	0.37					$	1.09
EARNINGS PER SHARE — DILUTED	$	0.61					$	0.86					$	0.37					$	1.06
WEIGHTED AVERAGE SHARES OUTSTANDING		19,048						19,127						19,022						19,056
WEIGHTED AVERAGE SHARES OUTSTANDING WITH COMMON STOCK EQUIVALENTS		19,267						19,487						19,224						19,448
SUPPLEMENTAL SALES DATA
	Quarter Period												Year to Date
Market Classification	2008			%			2007			%			2008			%			2007			%
Do-It-Yourself/Retail	$	334,694			46	%	$	360,281			46	%	$	507,339			41	%	$	555,883			41	%
Site-Built Construction		132,758			18	%		161,209			20	%		241,657			20	%		299,628			23	%
Industrial		173,962			24	%		163,503			21	%		314,620			26	%		297,293			22	%
Manufactured Housing		84,184			12	%		105,522			13	%		160,499			13	%		194,419			14	%
Total Gross Sales		725,598			100	%		790,515			100	%		1,224,115			100	%		1,347,223			100	%
Sales Allowances		(17,113	)					(17,410	)					(26,118	)					(25,080	)
Total Net Sales	$	708,485					$	773,105					$	1,197,997					$	1,322,143

UNIVERSAL FOREST PRODUCTS, INC.
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CONSOLIDATED BALANCE SHEETS (UNAUDITED)
JUNE 2008/2007

(In thousands)
ASSETS	2008		2007
CURRENT ASSETS
Cash and cash equivalents	$	32,483	$	42,697
Accounts receivable		227,963		233,067
Inventories		222,937		274,395
Assets held for sale		10,334		17,115
Other current assets		34,828		22,339
TOTAL CURRENT ASSETS		528,545		589,613
OTHER ASSETS		7,657		7,691
INTANGIBLE ASSETS, NET		186,664		185,302
PROPERTY, PLANT AND EQUIPMENT, NET		263,635		286,438
TOTAL ASSETS	$	986,501	$	1,069,044

LIABILITIES AND SHAREHOLDERS' EQUITY	2008		2007
CURRENT LIABILITIES
Accounts payable	$	122,345	$	147,614
Accrued liabilities		89,093		82,432
Current portion of long-term debt and capital leases		945		3,611
TOTAL CURRENT LIABILITIES		212,383		233,657
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS, less current portion		177,063		243,833
OTHER LIABILITIES		52,761		50,209
SHAREHOLDERS’ EQUITY		544,294		541,345
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	986,501	$	1,069,044

UNIVERSAL FOREST PRODUCTS, INC.
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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED
JUNE 2008/2007

(In thousands)	2008			2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	7,087		$	20,686
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation		19,331			19,013
Amortization of intangibles		4,778			4,633
Expense associated with share-based compensation arrangements		564			258
Expense associated with stock grant plans		85			146
Deferred income taxes		(212	)		(89	)
Minority interest		687			832
Gain on sale of interest in subsidiary		—			(140	)
Net loss (gain) on sale or impairment of property, plant and equipment		573			(131	)
Changes in:
Accounts receivable		(83,169	)		(72,549	)
Inventories		16,043			(11,354	)
Accounts payable		37,659			54,581
Accrued liabilities and other		22,171			(158	)
Excess tax benefits from share-based compensation arrangements		(42	)		(679	)
NET CASH FROM OPERATING ACTIVITIES		25,555			15,049
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant, and equipment		(10,469	)		(18,653	)
Acquisitions, net of cash received		(23,338	)		(56,209	)
Proceeds from sale of interest in subsidiary		—			400
Proceeds from sale of property, plant and equipment		26,827			2,686
Advances on notes receivable		(997	)		—
Collection of notes receivable		448			137
Other, net		(97	)		(16	)
NET CASH FROM INVESTING ACTIVITIES		(7,626	)		(71,655	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) borrowings under revolving credit facilities		(28,295	)		74,318
Repayment of long-term debt		(492	)		(25,417	)
Proceeds from issuance of common stock		805			2,862
Distributions to minority shareholder		(378	)		(825	)
Investment received from minority shareholder		419			—
Dividends paid to shareholders		(1,139	)		(1,047	)
Repurchase of common stock		—			(2,106	)
Excess tax benefits from share-based compensation arrangements		42			679
Other, net		(13	)		(269	)
NET CASH FROM FINANCING ACTIVITIES		(29,051	)		48,195
NET CHANGE IN CASH AND CASH EQUIVALENTS		(11,122	)		(8,411	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		43,605			51,108
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	32,483		$	42,697