6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
Sales to national accounts represented 33.5% of sales in the third quarter of 2006, as compared to 31.7% in the same period in 2005. Building products and engineered wood sales increased 4% and 3%, respectively, in the 2006 third quarter as compared to the 2005 third quarter, while sales of millwork products decreased 2% from the 2005 third quarter.
Three of Huttig's four regions experienced sales declines in the 2006 third quarter over the prior year period. Huttig's gross margins were negatively impacted by the $4.9 million of charges related to the inventory liquidations and write-downs, and lower margins on commodity wood products and doors.
Huttig announced its decision to close in the fourth quarter of 2006 two smaller distribution centers, one in Albany, NY, and the other in Grand Rapids, MI. In addition, Huttig expects to reduce its work force by an additional 130 positions in the fourth quarter of 2006. After this, the company will have reduced its workforce by about 240 positions or 11% from June 30, 2006, levels, including 60 positions eliminated at closed branches. The company's third quarter and fourth quarter reductions in force are expected to generate approximately $7.5 million in savings on an annualized basis.
"As a result of the charges to be recorded in 2006 associated with our restructuring program, and taking into account the difficult housing market, we now expect to record a modest operating loss (before interest, write-off of unamortized loan fees and taxes) for 2006 on sales of close to $1.1 billion."
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