Second Quarter Financials Prove Market Still Has MomentumAugust 3rd, 2021 by Tara Taffera
Three door and window related companies released their second quarter financial results in recent days, all proving that the market continues to have upward momentum with no signs of a slowdown. Door and window manufacturers Jeld-Wen and Fortune Brands both increased their 2021 outlooks, while distributor Huttig Building Products reported its second consecutive quarter of record operating results as a public company.
Jeld-Wen’s net revenue increased by 25.5% to $1.3 million, including a 19% increase in core revenue, and a 21% increase in North America. Net income for the second quarter increased $37.6 million to $60.7 million, compared to net income of $23.1 million in the same period last year.
The company’s new 2021 outlook for net revenue growth is expected to be within a range of 12% to 14%, compared to 8% to 11% previously.
Fortune Brands Home and Security Inc. also updated its annual outlook. The company expects to continue outperforming a fundamentally strong housing market and anticipates delivering full-year sales growth in the range of 23% to 25%.
The revised outlook makes sense, considering the fact that, for the second quarter of 2021, sales were $1.9 billion, an increase of 41% over the second quarter of 2020. Outdoors and security sales increased approximately 61%, driven by the addition of Larson and double-digit sales growth of composite decking, doors and security, according to the company.
Supply chain issues continue to be a challenge and both Jeld-Wen and Fortune alluded to those in their reports. No one knows that better than Huttig Building Products Inc., distributor of millwork, building materials and wood products, as millwork has perhaps been most impacted by supply chain disruptions, due to lumber shortages.
Despite those challenges, Huttig reported net sales of $247.4 million in the second quarter of 2021, which were $55.4 million, or 28.9%, higher than the second quarter of 2020. The increase in net sales was primarily attributable to an increase in residential construction activity as compared to the second quarter of 2020, which was impacted by the onset of the pandemic. Millwork sales of $97.3 million in the second quarter of 2021 were $15.6 million, or 19.1% higher than the second quarter of 2020. Building products sales increased 29.5% to $126.3 million, compared to $97.5 million in the second quarter of 2020. Wood product sales increased 85.9% to $23.8 million, compared to $12.8 million in the second quarter of 2020.