Huttig achieves 6% growth in Q3

Huttig Building Products experienced growth across all of its product categories in the third quarter, resulting in a net sales gain of 6%.

Net sales came in at $192.8 million for the third quarter ended Sept. 30, up 6.1% from the previous year's revenues.

The company primarily attributed the growth to higher levels of construction activity, the addition of a new product line and the acquisition completed the quarter prior.

Millwork sales increased 10%, building products sales increased 2%, and wood product sales increased 8%.

Gross margin of 21.5% was up from the previous year's margin of 20.5%.

Net income was $4.7 million, well below the previous year's $20.5 million, however.

The company told investors an income tax expense of $2.5 million was recognized for the quarter ended Sept. 30. In the previous year's quarter, an income tax benefit of $17.4 million was regcognized. The big swing came as the company last year released a significant portion of its valuation allowance related to federal and certain state net operating loss carryforwards.

“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.”

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[NOTE: The above story has been adjusted to include the year-over-year change in tax benefits.]