Net sales jump 11% for Huttig in Q1
St. Louis-based building products distributor Huttig Building Products says its growth strategy is on track.
The company pointed to nets sales of $175.7 million in 2017, up 11% from $158.8 million in the same quarter last year. As expenses mounted on investments in the future, the company posted a loss in the quarter of $0.9 million, compared to net income of $1.5 million in the first quarter of 2016.
“Our first quarter results show the continued growth of our business and an increase in operating expenses resulting from the continued, meaningful investments we are making in our accelerated growth strategy,” said Jon Vrabely, President and CEO of Huttig Building Products. “While these investments are negatively impacting our short-term results, they are truly transformational in nature and provide the best opportunity to generate significant, sustained, profitable growth in the intermediate term.”
The increase was primarily due to higher levels of construction activity, the BenBilt Building Systems acquisition completed during the second quarter of 2016 and the effect of a special promotional winter buy sales occurring in the first quarter of 2017 compared to our special promotional winter buy sales occurring in the second quarter of 2016.
Millwork sales increased 15% in 2017 to $91.9 million, primarily due to increased construction activity and the acquisition. Building products sales increased 10 percent in 2017 to $68.1 million primarily due to our special promotional winter buy sales. Wood product sales decreased 4 percent in 2017 to $15.7 million.
Vrabely added, “The increase in our operating expenses is the result of continued investments in our people, as well as the expansion of our value-add service capabilities and the Huttig-Grip product line, which present significant, intermediate-term growth opportunities.”
Huttig distributes its products through 27 distribution centers serving 41 states.
Also this week, the company announced a partnership with Duchesne, a Canadian manufacturer of fasteners.
A new, Texas home for HDW
Hardware Distribution Warehouses is moving 22 miles west to set up a new corporate headquarters in Marshall, Texas. The Shreveport, Louisiana-based company purchased a 670,000 sq. foot facility in Marshall, into which it will consolidate its current distribution centers in Shreveport and Houston.
The setting's facility is described as a step up for the growing regional distributor currently based in Shreveport. The company plans to complete the move and begin shipments from Marshall by September, 2017.
Marshall will serve as the hub for western distribution, HDW said. The company’s Greenwood, Mississippi, distribution center will continue to provide services to the East side of the Mississippi River.
HDW recently purchased the Houston-based distributor formerly known as Handy Hardware. Currently, HDW ships products to more than 2,000 independent hardware and lumber yards in nine states.
With consolidation in Marshall, HDW CEO Kenny Beauvais said special attention will be given to customers of the Houston facility. “Understanding the importance of the Houston Distribution Center capabilities to their local market, HDW will be implementing a new daily service program to accommodate those customers,” he stated
The president of HDW’s Houston Division Craig Cowart, and former president of Handy Hardware, will not be relocating to Marshall. Cowart resigned from HDW last week. He said that the team’s efforts to integrate the Handy operation and the HDW operations have gone well.
HDW partnered with Fortna Associates, a nationally recognized business consulting firm, on the design and layout of the new facility in Marshall.
Huttig nails down partnership with Duchesne
St. Louis-based Huttig Building Products expands its fastener offering through an agreement with Canadian manufacturer Duchesne.
Duchesne will manufacture packaged and bulk nails under the Huttig-Grip brand, a division of Huttig providing a complete line of fastening solutions available through Huttig locations across the country.
[Further Reading: Huttig also announced a national distribution agreement with Knauf Insulation.]
“This partnership with Duchesne is a win-win relationship for both companies,” said David Fishbein, EVP of the Huttig-Grip division of Huttig Building Products. “Duchesne’s history of manufacturing top-quality products is a perfect fit for the Huttig-Grip brand and our customers.”
According to Huttig, the move is part of a strategy to expand brands and offerings in a way to build the company’s role as a distributor for millwork, building materials and fasteners.
Duchesne is celebrating its 90th anniversary as a business.
“Our expertise in manufacturing and Huttig’s strength in distribution will create a powerful force to grow the Huttig-Grip brand in the US market,” said Audrey Duchesne Milette, president and CEO of Duchesne. “The passion and connection between both teams reveals the fit and brings to light that it is just the beginning of a long and great journey.”