Huttig reports a soft quarter
St. Louis-based Huttig reported a sales decline for the quarter ended June 30, as the business felt adverse weather conditions in many parts of the country.
Net sales were $218.5 million in the second quarter of 2019, down 2.2%, from the second quarter of 2018. The decrease in net sales was primarily attributed to a modest softening in the distributor’s markets coupled with prolonged adverse weather conditions in many parts of the country which negatively impacted construction activity.
Millwork product sales decreased 3.9% in the second quarter of 2019 to $99.5 million. Building products sales increased 1.7% in the second quarter of 2019 to $101.1 million. And wood product sales decreased 12.7% in the second quarter of 2019 to $17.9 million.
The proportionate increase in sales of building products is “generally consistent with our strategic growth initiatives,” the company said.
Huttig distributes its products through 27 distribution centers serving 41 states.
The bottom line: Income swung to a net loss of $!0.3 million, compared to $0.2 million in earnings in the same quarter last year.
What the CEO said: “Our sales are slightly behind last year’s pace due to some market softening caused in part by inclement weather across many parts of the country in the first half of the year,” said Jon Vrabely, Huttig’s president and CEO. “While we made a significant investment in, and successfully executed a major ERP upgrade, we experienced temporary disruption which impacted our sales. Meanwhile, our cost management initiatives have begun to improve operating income, and our cash management has significantly reduced our borrowing needs. We continue to focus on achieving efficient working capital levels.”
Company information: Read the full Q2 earnings release here.
Net sales were $218.5 million in the second quarter of 2019, down 2.2%, from the second quarter of 2018. The decrease in net sales was primarily attributed to a modest softening in the distributor’s markets coupled with prolonged adverse weather conditions in many parts of the country which negatively impacted construction activity.
Millwork product sales decreased 3.9% in the second quarter of 2019 to $99.5 million. Building products sales increased 1.7% in the second quarter of 2019 to $101.1 million. And wood product sales decreased 12.7% in the second quarter of 2019 to $17.9 million.
The proportionate increase in sales of building products is “generally consistent with our strategic growth initiatives,” the company said.
Huttig distributes its products through 27 distribution centers serving 41 states.
The bottom line: Income swung to a net loss of $!0.3 million, compared to $0.2 million in earnings in the same quarter last year.
What the CEO said: “Our sales are slightly behind last year’s pace due to some market softening caused in part by inclement weather across many parts of the country in the first half of the year,” said Jon Vrabely, Huttig’s president and CEO. “While we made a significant investment in, and successfully executed a major ERP upgrade, we experienced temporary disruption which impacted our sales. Meanwhile, our cost management initiatives have begun to improve operating income, and our cash management has significantly reduced our borrowing needs. We continue to focus on achieving efficient working capital levels.”
Company information: Read the full Q2 earnings release here.