Huttig Sales, Profits Rise in Q3
ST. LOUIS, MO — Huttig Building Products, Inc., a domestic distributor of millwork, building materials and wood products, today reported financial results for the third quarter ended September 30, 2016.
“We are pleased with our performance in the third quarter, especially in light of the sluggish growth in the single family new construction segment in recent months,” said Jon Vrabely, Huttig’s President and CEO. “We expect to see continued growth and profitability as we execute on our strategies to accelerate our growth, and invest in our people and in our technology platform.”
Net sales were $192.8 million in 2016, which was $11.1 million, or 6%, higher than in 2015. The increase was primarily due to higher levels of construction activity, the addition of a new product line and the acquisition that was completed during the second quarter of 2016.
Sales increased in all product categories in 2016 compared to 2015. Millwork sales increased 10% in 2016 to $97.4 million, primarily due to increased construction activity and the acquisition. Building products sales increased 2% in 2016 to $76.9 million. Wood product sales increased 8% in 2016 to $18.5 million.
Gross margin increased 11% to $41.4 million in 2016 compared to $37.2 million in 2015. As a percentage of sales, gross margin increased to 21.5% in 2016 from 20.5% in 2015. The increase in gross margin percentage was primarily due to our operational initiatives as well as improved product mix as we continue to expand our value-add capabilities to serve the repair/remodel construction segment.