Huttig sales up 4% in third quarter
Huttig Building Products reported third quarter 2017 net sales of $199.6 million, up 4% from net sales $192.8 million in the third quarter 2016. Huttig attributed the increase in net sales to the general increase in housing activity.
Millwork sales were flat in 2017 at $97.6 million, compared to 2016. Building products sales increased 7% percent in the third quarter to $82.6 million primarily due to increases in sales of Huttig-Grip products. Wood product sales increased 5% to $19.4 million during the quarter.
The St. Louis-based building products distributor also reported a third quarter net income of $1.3 million compared to a third quarter net income of $4.8 million in the third quarter a year ago. Huttig attributed the decline.
Huttig reported that its operating expenses increased $4.6 million to $38.2 million in 2017, compared to $33.6 million in 2016 and said, in a statement issued this afternoon, that the increase was primarily due to higher costs as a result of hiring additional sales and warehouse personnel related to our Huttig-Grip Division and repair and remodel growth initiatives. The increase was also impacted by legal fees incurred defending its Huttig-Grip Division’s right to compete in the fastener market.
“We continued to make significant progress in implementing our strategic plan during the third quarter and are rapidly approaching the sales execution stage of our growth initiatives," said Jon P. Vrabely, president and CEO of Huttig Building Products.
Huttig distributes its products through 27 distribution centers serving 41 states.
Huttig makes executive changes
Huttig, the St. Louis-based building products distributor, reported several changes to its executive team, effective Jan. 1, 2018.
Robert Furio, currently executive vice president of the Huttig-Grip Division, has been appointed executive vice president and chief operating officer. David Fishbein, will continue in his current role as executive vice president of Huttig-Grip Division, and has been appointed chief marketing officer.
Rebecca Kujawa, currently serving as Huttig vice president, general counsel and corporate secretary, has been appointed senior vice president supply chain management, general counsel and corporate secretary. Brian Robinson, currently the Huttig’s vice president and chief information officer, has been appointed senior vice president and chief information officer.
Oscar Martinez will continue in his current role as the Huttig vice president and chief financial officer while John Short will continue in his current role as the company’s vice president of human resources, the company said.
“This new executive leadership structure better supports the transformational change we are driving through the organization, leverages the industry and managerial experience of the executives that have recently joined Huttig across the entire company, and aligns the Huttig-Grip Division with our corporate structure and field operations,” Jon Vrabely, Huttig president and CEO, said in a prepared statement.
A convention for a growing LBM Advantage
Purchasing power and economic forces were among the topics tackled by the LBM Advantage buying group at its Forest Products Conference in Baltimore. The event marked the group’s first conference since the acquisition of IBSA of Smithfield, N.C.
IBSA brings 225 Southeastern locations to LBM Advantage – for a total of 1,100 retail locations — and the increased footprint was celebrated at the event. “We carry a lot of clout with the manufacturers these days” notes Duncan Facey, VP of forest products. “The addition of the IBSA membership creates more geography and even bigger numbers that the mills are eager to compete for.”
Additionally, Mark Porter, president of Seattle-based Hampton Lumber Company, a longtime supplier and featured guest speaker at the event, addressed the crowd on topics of national fiber demand, environmental issues, and the high market prices that were the top story of 2017. “These prices just might be the new normal” continued Porter, citing export demand in an economy that has not yet realized the anticipated 1.4 million or more housing starts.
LBM Advantage will continue its dealer education series at their upcoming Annual Meeting and Trade Show in Orlando, Fla. on Feb. 19-21. That event will officially celebrate and welcome the IBSA members, the co-op said.