Huttig Q2 sales up, but rising expenses take a toll
Huttig Building Products, Inc. reported second quarter 2018 net sales were $223.4 million in the second quarter of 2018, a 12.4% gain from second quarter 2017 net sales of $198.7 million.
The St. Louis-based building products distributor said the increase in net sales was primarily attributed to an approximate 7.7% increase in new residential construction activity as well as organic growth derived “from the execution of our strategies.”
But expenses took a heavy toll on Huttig as the company reported a net income from continuing operations of $200,000 for the quarter compared to a net income from continuing operations of $2.3 million in the second quarter of last year.
The company reported that its operating expenses increased $4.9 million to $43 million in the second quarter of 2018, compared to $38.1 million in the second quarter of 2017. Personnel costs increased approximately $2.2 million, primarily as a result of wage increases, higher variable compensation, higher healthcare costs, and hiring additional sales and warehouse personnel related to the execution of its strategic growth initiatives.
Non-personnel costs increased approximately $2.7 million, primarily as a result of higher fuel prices, increased contract hauling costs, and expenses associated with the PrimeSource litigation and settlement.
Huttig entered into a confidential agreement with PrimeSource on June 29 for the settlement and release of all claims between the parties. Excluding expenses associated with the PrimeSource litigation and settlement, operating expenses would have been approximately $40.5 million, or 18.1% of sales for the quarter ended June 30, 2018.
The distributor’s millwork product sales increased 3% in the second quarter of 2018 to $103.5 million, compared to $100.4 million in the second quarter of 2017. Building products sales increased 24% in the second quarter of 2018 to $99.4 million, compared to $79.9 million in the second quarter of 2017, and wood product sales increased 11% in the second quarter of 2018 to $20.5 million, compared to $18.4 million in the second quarter of 2017.
For the first 6 months of 2018, net sales were $421.4 million – a 13% gain from net sales of $373.4 million for the first 6 months of 2017. Huttig also reported a net loss from continuing operations of $1.1 million for the first half of the year in comparison to a net income of $1.3 million during the first 6 months of 2017.
On July 30, Huttig announced that Philip Keipp has rejoined the company as a senior financial consultant. Keipp previously served as vice president and CFO for Huttig from July 2009 through June 2015.
The St. Louis-based building products distributor said the increase in net sales was primarily attributed to an approximate 7.7% increase in new residential construction activity as well as organic growth derived “from the execution of our strategies.”
But expenses took a heavy toll on Huttig as the company reported a net income from continuing operations of $200,000 for the quarter compared to a net income from continuing operations of $2.3 million in the second quarter of last year.
The company reported that its operating expenses increased $4.9 million to $43 million in the second quarter of 2018, compared to $38.1 million in the second quarter of 2017. Personnel costs increased approximately $2.2 million, primarily as a result of wage increases, higher variable compensation, higher healthcare costs, and hiring additional sales and warehouse personnel related to the execution of its strategic growth initiatives.
Non-personnel costs increased approximately $2.7 million, primarily as a result of higher fuel prices, increased contract hauling costs, and expenses associated with the PrimeSource litigation and settlement.
Huttig entered into a confidential agreement with PrimeSource on June 29 for the settlement and release of all claims between the parties. Excluding expenses associated with the PrimeSource litigation and settlement, operating expenses would have been approximately $40.5 million, or 18.1% of sales for the quarter ended June 30, 2018.
The distributor’s millwork product sales increased 3% in the second quarter of 2018 to $103.5 million, compared to $100.4 million in the second quarter of 2017. Building products sales increased 24% in the second quarter of 2018 to $99.4 million, compared to $79.9 million in the second quarter of 2017, and wood product sales increased 11% in the second quarter of 2018 to $20.5 million, compared to $18.4 million in the second quarter of 2017.
For the first 6 months of 2018, net sales were $421.4 million – a 13% gain from net sales of $373.4 million for the first 6 months of 2017. Huttig also reported a net loss from continuing operations of $1.1 million for the first half of the year in comparison to a net income of $1.3 million during the first 6 months of 2017.
On July 30, Huttig announced that Philip Keipp has rejoined the company as a senior financial consultant. Keipp previously served as vice president and CFO for Huttig from July 2009 through June 2015.