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Construction
Surfboards are usually constructed using polyurethane foam. They are made stronger with a small piece of wood going down the middle of the board called a stringer. The foam is molded into the rough shape of a surfboard called a blank. Note: Recently, the largest producer of these blanks: Clark Foam announced its closure. This move drastically effected surfboard production and has become known to surfers as Black Monday. Once the blanks have been made they are given to shapers. Shapers then cut, plane, and sand the board to its specifications. Finally, the board is glassed. Glassing is basically when the fiberglass is put on. It is during the glassing that the fins are put on and the leash plug is drilled on. The other method of making boards is using epoxy instead of fiberglass. Although boards are usually shaped by hand the use of machines to make them has become more and more popular over the years.

There is a series on Discovery Channel called How It’s Made and they did one on how surfboards were made – I did not pay that much attention, but the Wiki description seems to fit what I remember!
References :
http://www.surfersteve.com/introduction.htm tells a beginner how to make one (but I did not read the whole thing!