Huttig Building Products Announces Record First Quarter Net EarningsMay 4th, 2021 by Editor
Huttig Building Products Inc., a domestic distributor of millwork, building materials and wood products, released its financial results for the first quarter ended March 31, 2021.
“The continued execution of our strategy combined with strong demand in residential construction resulted in substantial gains in our first quarter operating results,” said Jon Vrabely, president and CEO. “Our focus on profitable sales growth of our strategic product categories and disciplined management of the expense structure contributed to record first quarter operating results as a public company. Our performance would not be possible without the commitment and dedication of our entire team of associates.”
Net sales were $214.7 million in the first quarter of 2021—$11.7 million (5.8%) higher than the first quarter of 2020. The company attributes this rise in net sales to an increase in residential construction activity. Compared to the first quarter of 2020, income growth in the first quarter of 2021 was moderated by restructuring activities announced in the second quarter of last year, and by the company’s 2020 product rationalization program. Similar to other companies across the country, Huttig also continued to experience supply chain disruption across several key product categories which mitigated revenue growth, officials said. Supply issues aside, pricing for certain products boosted first-quarter sales.
Millwork sales of $96.2 million in the first quarter were unchanged from the first quarter of last year. Millwork is the category most impacted by supply chain disruption, officials said, and was also impacted by 2020 restructuring and product rationalization activities. Building products sales increased 10% in the first quarter of 2021, landing at $101.9 million compared to $92.6 million in the first quarter of 2020. Wood product sales increased 16.9% in the first quarter of 2021 to $16.6 million, compared to $14.2 million in the first quarter of 2020.
Gross margin was $45.7 million in the first quarter of 2021, compared to $40.9 million in the first quarter of 2020. As a percentage of sales, gross margin was 21.3% in the first quarter of 2021, compared to 20.1% in the first quarter of 2020.