Huttig Building Products announces Q4 and full year 2019 results
Company posts net sales of $812 million for full year.
Fourth Quarter and Full Year 2019 Highlights:
• Net sales of $180.4 million and $812.0 million, respectively
• Gross margin of 19.7% and 20.0%, respectively
• Operating loss of $8.0 million and $3.6 million, respectively
• Cash provided by continuing operating activities of $6.6 million in fiscal 2019 compared to $26.4 million cash usage in fiscal 2018
Huttig Building Products, Inc., a leading domestic distributor of millwork, building materials and wood products, has reported financial results for the fourth quarter and year ended December 31, 2019.
“Our sales were impacted in 2019 by lower levels of new residential construction in the first half of the year. Although new residential construction showed modest improvement in the second half of 2019, the growth was primarily concentrated in the fourth quarter and was heavier in the multi-family segment, where we have less exposure. We also continued our de-emphasis on more commoditized, lower margin categories,” said Jon Vrabely, Huttig’s President and Chief Executive Officer.
“As stated previously, we experienced some sales erosion in the second and third quarters as a result of challenges from our enterprise resource planning system upgrade. That disruption is now behind us. We made some difficult decisions in the fourth quarter to address both our cost structure and our sales alignment. We believe this will have a positive impact on our operating results as we navigate through 2020.”
Results of Operations
Fourth Quarter 2019 Compared to Fourth Quarter 2018
Net sales from continuing operations were $180.4 million in the fourth quarter of 2019, a decrease of $15.8 million, or approximately 8.1%, compared to $196.2 million in the fourth quarter of 2018. The decrease was primarily due to Huttig's de-emphasis of more commoditized, lower margin products, commodity pricing influence across the wood products category, lagging softness in new residential construction, and a competitive market environment.
Net sales in major product categories changed as follows in the fourth quarter 2019 from the fourth quarter 2018: millwork sales decreased 7.2% to $90.0 million, building product sales decreased 7.8% to $77.1 million, and wood product sales decreased 15.3% to $13.3 million.
Gross margin decreased $2.5 million, or 6.6%, to $35.6 million in the fourth quarter 2019 compared to $38.1 million in the fourth quarter 2018. Gross margin as a percentage of net sales increased to 19.7% in the fourth quarter 2019 from 19.4% in the fourth quarter 2018. The increase in gross margin percentage was consistent with our de-emphasis of commoditized products.
Learn more at www.huttig.com.
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