Huttig sales move ahead in Q4
Huttig reported fourth quarter 2020 sales increased 2.3% to $184.6 million from fourth quarter 2019 sales of $180.4 million.
While the St. Louis, Mo.-based building products distributor attributed higher levels of residential construction activity for a sales increase, Huttig said that its gains were offset by pandemic-induced changes to the operating environment resulting in supply chain disruptions and a labor shortage.
Restructuring activities along with supply chain disruption and labor shortages lengthened lead times, resulting in millwork sales decreasing 1.9% to $88.3 million in the fourth quarter, compared to $90.0 million in the fourth quarter of 2019.
Building products sales increased 7.5% in the fourth quarter of 2020 to $82.9 million, compared to $77.1 million in the fourth quarter of 2019. Wood product sales increased 0.8% in the fourth quarter of 2020 to $13.4 million, compared to $13.3 million in the fourth quarter of 2019.
Sales for the full year fell 2.4% to $792.3 million compared to sales of $812 million in the prior year.
For the fourth quarter, Huttig posted a net income of $0.3 million compared to a net loss of 9.4 million in the fourth quarter 2019. For all of 2020, Huttig reported a net loss of $0.9 million compared to a net loss of $21.3 million in the prior year.
###
The Bottom Line: Sales rise 2.3% in the fourth quarter as earnings are in the black at $300,000.
What the CEO said: “The momentum we generated through the third quarter of 2020 continued and contributed to our solid fourth quarter results,” said Jon Vrabely, president and CEO of Huttig. “In light of the headwinds of restructuring activities and continued supply chain challenges across several key product categories, we were able to grow fourth quarter sales over the prior year and significantly improve our operating results and profitability. Combined with effective working capital management, we ended the year with our highest liquidity and lowest debt levels in several years.”
Company info: The full fourth quarter 2020 report from Huttig is available here.