Huttig Announces Closure of Fredericksburg Location

In May, the Fredericksburg, Va., location for Huttig Building Products Inc. was struck by a storm that lifted the facility's roof, causing more than $700,000 in damages and leaving several employees badly shaken. (CLICK HERE for related article and video). Just three months later, employees of the Fredericksburg location are facing another serious issue—closure.

Huttig recently announced it will close this location, citing a "continuing decline in the housing market" as cause. Company officials say this move reflects an ongoing effort to adjust the size of its infrastructure to match current demands.

"In this challenging environment, we continue to focus on controlling expenses, improving operating efficiencies, reducing inventories, generating cash, and gaining market share," says Jon Vrabely, president and chief executive officer.

Employees were notified of the company's intent August 26, 2008, and company officials report they expect the action to be completed in the fourth quarter of 2008. Huttig expects to incur between $0.6 million and $0.8 million in operating charges related to this action during the third and fourth quarters of 2008, comprised of between $0.5 million and $0.7 million for asset write-offs and transfer costs, and approximately $0.1 million for employee severance costs. The company expects approximately $0.3 million of these charges to be cash payments.

Company officials say they expect to continue to serve substantially all of its Fredericksburg customers from distribution facilities in Rocky Mount, N.C. and Lancaster, Pa.

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