Huttig Building Products, Inc., reported sales of $671 million for 2008, down 23.3% from 2007. The distributor of building materials recorded a year-end loss of $35.4 million, compared to a loss in 2007 of $8.2 million.
Sales decreased in all major product categories, attributable to continued significant decline in new housing activities. Wood products sales decreased 35%, while millwork sales declined 30%. The sales decline in building products (10%) was less than other segments as a result of new product initiatives put in place by the company.
Housing starts are expected to continue to be slow in 2009.
For the fourth quarter 2008, sales were $126 million, down 30% from fourth quarter 2007. A loss of $15.4 million was recorded for the quarter, compared to a loss of $5.8 million for the same period a year ago.
In March, Huttig announced the closures of its facilities in Atlanta, GA, and Indianapolis, IN. The company began restructuring operations in the second quarter of 2006 as a response to the downturn in the residential construction market. Workforce in this timeframe was reduced by 45.5%, ending 2008 with about 1,200 employees. In addition, 17 distribution centers were closed consolidated or sold.