Huttig Building Products Inc., a domestic distributor of millwork, building materials and wood products, has released financial results for the fourth quarter and year ended December 31, 2020.

“The momentum we generated through the third quarter of 2020 continued and contributed to our solid fourth quarter results,” said Jon Vrabely, president and CEO of Huttig. “In light of the headwinds of restructuring activities and continued supply chain challenges across several key product categories, we were able to grow fourth quarter sales over the prior year and significantly improve our operating results and profitability. Combined with effective working capital management, we ended the year with our highest liquidity and lowest debt levels in several years. I am very proud of our entire organization and look forward to continuing our progress in 2021 as we build on the foundation we established in 2020.”

The company’s net sales were $184.6 million in the fourth quarter of 2020, which were $4.2 million, or 2.3%, higher than the fourth quarter of 2019. The increase was attributable to higher levels of residential construction activity, but was offset by factors, including pandemic-induced changes to the operating environment resulting in supply chain disruption and labor shortages. Also disrupted was the company’s execution of planned restructuring activities, including the closure of two branches in the third quarter of 2020.

Due primarily to restructuring activities, along with the aforementioned supply chain disruption and labor shortages, millwork sales decreased 1.9% to $88.3 million in the fourth quarter, compared to $90.0 million for the same time frame in 2019. Building products sales increased 7.5%, from $77.1 million in the fourth quarter of 2019 to $82.9 million in the fourth quarter of 2020. The sales growth in this category was also offset by supply chain disruption as well as product rationalization activities related to Huttig’s objective of focusing on higher-margin, non-commoditized products. Wood product sales increased 0.8% in the fourth quarter of 2020 to $13.4 million, over the $13.3 million in the fourth quarter of 2019.

Gross margin was $37.1 million in the fourth quarter of 2020, up from $35.6 million in the fourth quarter of 2019. As a percentage of sales, gross margin was 20.1% in the fourth quarter of 2020, compared to 19.7% in the fourth quarter of 2019. The company is expecting to improve its overall margin performance in 2021.

Net sales from continuing operations were $792.3 million in 2020, a decrease of $19.7 million, or approximately 2.4%, from $812.0 million in 2019. The decline was attributable to a number of factors, including pandemic-induced changes to the operating environment. Huttig reports that, by the end of the third quarter, activity had recovered to levels approaching prior year sales, and fourth quarter net sales recovered to moderately exceed prior year levels. Demand has improved as construction activity has rebounded.

Net sales in the company’s major product categories changed as follows in 2020 from 2019:

Millwork sales

decreased

7.2%

to $357.0 million,

building product sales

increased

3.4%

to $379.0 million,

wood products

decreased

7.4%

to $56.3 million.

Leave a Reply

Your email address will not be published. Required fields are marked *