Huttig Building Products reported a slight gain in sales and a decline in net income in the second quarter, as the company pointed to investments and costs associatied with its new Huttig-Grip and Repair and Remodel growth initiatives.
The St. Louis-based company reported sales of $198.7 million, up slightly from $197.9 million in the same quarter last year. Net income was $2.2 million, down from $10. 4 million in the year-ago quarter.
“During the second quarter of 2017 we continued to make significant investments in the execution of our comprehensive strategic plan,” said Jon P. Vrabely, president and CEO of Huttig Building Products. “These investments in capital and operating expenses are required to fundamentally transform our business to consistently deliver profitable growth in the intermediate and long term.”
Operating expenses increased $5.9 million to $38.1 million in 2017, compared to $32.2 million in 2016. The increase was primarily due to higher costs as a result of hiring additional sales and warehouse personnel related to the company’s Huttig-Grip and Repair and Remodel growth initiatives.
The increase was also impacted by legal fees incurred defending our Huttig-Grip division’s right to compete in the fastener market as well as personnel and non-personnel costs. The company faces litigation from rival PrimeSource Building Products over the hiring of former high-ranking PrimeSource executives, including Mona Zinman and Robert Furio, to lead its fastener business.
Huttig operates 27 distribution centers serving 41 states.