Huttig reports record year sales
Huttig Building Products, Inc. (HBP), headquartered in St. Louis, reported record full year and record fourth quarter sales, based on a strong residential construction segment.
For the full year ending Dec. 31, 2021, the company reported net sales of $937.8 million, an increase of $145.5 million, or approximately 18.4%, compared to $792.3 million in 2020. Net sales in 2020 were significantly affected by the onset of the pandemic, said Huttig.
Huttig reported that gross margin for the year increased $48.6 million, or 30.5%, to $208 million in 2021, as compared to $159.4 million in 2020. Gross margin as a percentage of net sales increased to 22.2% in 2021 compared to 20.1% in 2020.
Gross margins for the full year were favorably impacted, the firm noted, “by our continued focus on non-commoditized, strategic product lines which carry higher margins, as well as effective pricing management.”
In the fourth quarter, Huttig reported net sales were $230.4 million in, which were $45.8 million, or 24.8%, higher than the fourth quarter of 2020.
The increase, the company said, was attributable to several factors including a continued strong residential construction market along with an inflationary environment elevated by demand-driven pricing with higher input costs, such as labor and materials, which are reflective of challenges the supply chain and labor markets experienced throughout much of 2021.
In product categories, year over year, millwork sales increased 15.5% to $412.2 million; building product sales increased 18.2% to $447.9 million; and wood products increased 38.0% to $77.7 million.
“Millwork sales, although most impacted by the disruption in our supply chain and by our 2020 restructuring and product rationalization activities, performed well and benefited from improved demand and market pricing,” the company said. “Demand for our value-added millwork products exceeded supply, creating an input-constrained ability to produce.”
Building products sales increased due to consistent high levels of demand for certain product lines within the category, including certain strategic product lines such as Huttig Grip fasteners; however, sales growth in this category was also affected by supply chain disruption. Wood product sales benefited from higher market prices on a year-over-year basis, said the company.
The Bottom Line: Huttig sales for the year moved ahead more than 18% company-wide for 2021 to nearly $938 million.
What the CEO said: “We generated adjusted EBITDA of $55.1 million, despite the impact from an $18.3 million LIFO charge. The continued execution of our business plan and the dedication of our associates to serve our customers have largely contributed to our success in sustainably changing our financial model,” said Jon Vrabely, president and CEO of Huttig.
Company info: Click HERE to read the Q4 and full year 2021 financial report from Huttig.