Huttig Building Products, Inc., St. Louis, MO, distributor of millwork, building materials and wood products, reported sales were $1.103 billion in 2006, up slightly from 2005. A 9% increase in the first half of the year offset the 7% decline in sales in the second half of the year when the housing market began to decline. Huttig had an operating loss of $4.1 million for the year.

For the fourth quarter ended Dec. 31, 2006, sales were $231.1 million, with an operating loss of $2.6 million. Sales were down 13% from the same period a year ago, reflecting the 24% drop in housing starts. Sales to national accounts for the quarter, which represented 34.8% of sales, declined by 7%.

Overall in 2006, sales to national accounts represented 33.4% of sales in 2006 as compared to 31.9% in 2005.

The housing market continues to be difficult. During the past two quarters, we have closed or consolidated five branches, trimmed our workforce by approximately 300 positions, or 14%, while entering into a new credit facility with more favorable terms,’ said Huttig President and CEO Jon P. Vrabely. In January 2007, we further streamlined and decentralized our management structure by reducing our geographic regions from four to two. We will continue to take actions to become more efficient and improve our cost structure in order to reduce our operating expenses and bring them in line with market conditions.

Huttig distributes its products through 42 distribution centers serving 46 states. The company’s wholesale distribution centers sell principally to building materials dealers, national buying groups, home centers and industrial users, including makers of manufactured homes.

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