Huttig Building Products, Inc. Announces First Quarter 2008 Results; Records a $7.0 Million Non-Cash Goodwill

ST. LOUIS, MO, Apr 17 (MARKET WIRE) --
Huttig Building Products, Inc. (NYSE: HBP), a leading domestic distributor
of millwork, building materials and wood products, today announced results for
the first quarter ended March 31, 2008.

The Company reported a net loss of $9.8 million, or ($0.47) per diluted
share,
for the 2008 first quarter, compared to a net loss of $3.4 million, or ($0.17)
per
diluted share, in the corresponding year ago quarter. Net sales declined 25%
to $166.8 million, compared to $222.4 million in the year ago period. The
operating loss was $13.3 million compared to $3.8 million in the prior year
quarter. Excluding the charges and gains in both periods as described below,
the first quarter 2008 operating loss totaled $6.0 million compared to an
operating loss of $0.9 million in the prior year quarter, gross profit margin
was 19.1% versus 19.2%, and operating expenses declined by 13%.

First quarter 2008 results include a non-cash goodwill impairment charge
tooperating expenses of $7.0 million before tax, or $0.24 per share net of
tax, reflective of a further decline in actual and forecasted operating results
at
certain of the Company's branch operating units. First quarter 2008 results
also
include net charges of $0.3 million related to previously announced cost
reduction
actions initiated in the 2007 fourth quarter, while first quarter 2007 results
include net charges of $3.4 million from a prior cost reduction program,
which charges were partially offset by a $0.5 million gain on the disposal of
a facility.

During the 2008 first quarter, Huttig continued its program aimed at
improving operating efficiencies and reducing its cost structure. Inventories at
March 31, 2008 declined 11% year over year, to $92.1 million. Bank debt, net
of cash, at March 31, 2008 decreased 20%, to $46.7 million, from $58.3 million
a year ago. Total debt to total capitalization, net of cash, at March 31, 2008
decreased to 34%, compared to 36% at March 31, 2007. Cash used in operating
activities of continuing operations was $23.6 million versus $21.2 million in
the
year ago first quarter. At the end of the March 2008 quarter, the Company had
$53.2million of availability under its revolving credit facility in addition to
outstanding borrowings.

"While seasonally one of our slowest quarters, the 2008 first quarter was
also significantly impacted by the 29% year over year decline in
annualizedhousing starts, to approximately 1.04 million, from approximately 1.46
million
in the 2007 first quarter, with annualized housing starts for March 2008
decreasing to under .95 million," said Jon Vrabely, President and CEO. "Given
this challenge, we continue to pursue all avenues aimed at controlling
expenses, improving operating efficiencies, reducing inventories and generating
cash. Although we incurred an operating loss in the quarter, our year over
year sales decreased less than the overall decline in housing starts, suggesting
that we have continued to increase our overall market share despite having fewer
physical locations. In addition, we have essentially maintained our gross
profit margin percentage despite the increased competitive pressure as a result
of
the market decline. That having been said, there continue to be opportunities
whichwe will aggressively pursue to expand our market share, further improve
operating
efficiencies and reduce costs."

During the quarter, Huttig successfully completed, on time and within
budget,
the consolidation of distribution facilities in Kansas City, Missouri and
Greensburg, Pennsylvania into adjacent facilities in Springfield, Missouri,
Columbus, Ohio, and Lancaster, Pennsylvania, allowing those adjacent branches to
further leverage their cost structure. Looking ahead, Huttig is implementing a
LEAN
manufacturing initiative to identify additional opportunities to improve
production and operational efficiencies. The Company is also intensifying its
efforts to sell slower moving inventory to free up capital and reduce debt.

Conference Call

Management will host a conference call to discuss first quarter 2008
financial
results on Friday, April 18, 2008, at 11 AM Eastern Time (10 AM Central
Time). To access the call, please dial 888-694-4702 and enter pin number
41767177. A replay will be available through May 2, 2008 by dialing 800-642-1687
and entering the same pin number.

About Huttig

Huttig Building Products, Inc., currently in its 123rd year of business,
isone of the largest domestic distributors of millwork, building materials and
wood
products used principally in new residential construction and in home
improvement, remodeling and repair work. Huttig distributes its products
through 36 distribution centers serving 44 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.

Forward-Looking Statements

This press release contains forward-looking information as defined by the
Private Securities Litigation Reform Act of 1995. This information
presentsmanagement's expectations, beliefs, plans and objectives regarding
future
financial performance, and assumptions or judgments concerning such
performance. Any discussions contained in this press release, except to
theextent that they contain historical facts, are forward-looking and
accordingly involve estimates, assumptions, judgments and uncertainties. There
are known
and unknown factors that could cause actual results or outcomes to differ
materially from those addressed in the forward-looking information. Such known
factors
are detailed in the Company's Annual Report on Form 10-K for the year ended
December 31, 2007 filed with the Securities and Exchange Commission and in other
reports filed by the Company with the Securities and Exchange Commission from
time to time.

HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(In Millions, Except Share and Per Share Data)

Three Months Ended
March 31,
----------------------
2008 2007
---------- ----------
Net sales $ 166.8 $ 222.4
Cost of sales 134.7 180.6
---------- ----------
Gross margin 32.1 41.8
Operating expenses 38.4 46.1
Goodwill impairment 7.0 -
Gain on disposal of capital assets - (0.5)
---------- ----------
Operating loss (13.3) (3.8)
Interest expense, net 0.7 1.1
---------- ----------
Loss from continuing operations before income taxes (14.0) (4.9)
Benefit for income taxes (4.2) (1.7)
---------- ----------
Loss from continuing operations (9.8) (3.2)
Loss from discontinued operations, net of taxes - (0.2)
---------- ----------
Net loss $ (9.8) $ (3.4)
========== ==========

Net loss from continuing operations per share -
basic and diluted $ (0.47) $ (0.16)
Net loss from discontinued operations per share -
basic and diluted - (0.01)
---------- ----------
Net loss per share - basic and diluted $ (0.47) $ (0.17)
========== ==========

Basic and diluted shares outstanding 20,760,862 20,379,903

HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(In Millions)

March 31, December 31, March 31,
2008 2007 2007
---------- --------- ---------
(unaudited) (unaudited)
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 2.7 $ 1.8 $ 4.5
Trade accounts receivable, net 69.9 56.1 91.7
Inventories, net 92.1 88.7 103.6
Other current assets 10.3 13.6 15.2
---------- --------- ---------
Total current assets 175.0 160.2 215.0
---------- --------- ---------

PROPERTY, PLANT AND EQUIPMENT
Land 5.6 5.6 6.0
Building and improvements 30.3 30.2 32.6
Machinery and equipment 29.9 30.0 32.5
---------- --------- ---------
Gross property, plant and
equipment 65.8 65.8 71.1
Less accumulated depreciation 39.8 39.2 41.7
---------- --------- ---------
Property, plant and equipment, net 26.0 26.6 29.4
---------- --------- ---------

OTHER ASSETS:
Goodwill, net 11.2 18.3 19.0
Other 4.7 5.1 5.8
Deferred income taxes 7.0 2.5 2.4
---------- --------- ---------
Total other assets 22.9 25.9 27.2
---------- --------- ---------
TOTAL ASSETS $ 223.9 $ 212.7 $ 271.6
========== ========= =========

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 0.7 $ 1.2 $ 2.2
Trade accounts payable 51.4 50.1 72.0
Deferred income taxes 5.6 5.3 4.0
Accrued compensation 4.5 6.3 4.8
Other accrued liabilities 13.1 15.9 13.6
---------- --------- ---------
Total current liabilities 75.3 78.8 96.6
---------- --------- ---------
NON-CURRENT LIABILITIES:
Long-term debt, less current
maturities 50.0 25.4 63.7
Other non-current liabilities 3.5 4.2 4.1
---------- --------- ---------
Total non-current liabilities 53.5 29.6 67.8
---------- --------- ---------

SHAREHOLDERS' EQUITY
Preferred shares; $.01 par (5,000,000
shares authorized) - - -
Common shares; $.01 par (50,000,000
shares authorized: 21,560,176,
20,968,445 and 20,896,145 shares
issued at March 31, 2008,
December 31, 2007 and March 31,
2007, respectively) 0.2 0.2 0.2
Additional paid-in capital 36.5 36.1 35.6
Retained earnings 58.4 68.2 73.0
Less: Treasury shares, at cost - (0.2) (1.6)
---------- --------- ---------
Total shareholders' equity 95.1 104.3 107.2
---------- --------- ---------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 223.9 $ 212.7 $ 271.6
========== ========= =========

HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
UNAUDITED
(In Millions)

Common
Shares
Outstanding Additional Treasury Total
at Par Paid-In Retained Shares, Shareholders
Value Capital Earnings at Cost Equity
---------- --------- --------- --------- ---------

Balance at ---------
January 1, 2008 $ 0.2 $ 36.1 $ 68.2 $ (0.2) $ 104.3
---------
Net loss (9.8) (9.8)
---------
Comprehensive loss (9.8)
---------
Restricted stock
issued, net of
forfeitures (0.2) 0.2 -
Stock options
exercised, net 0.2 - 0.2
Stock compensation 0.4 0.4
---------- --------- --------- --------- ---------
Balance at March 31,
2008 $ 0.2 $ 36.5 $ 58.4 $ - $ 95.1
========== ========= ========= ========= =========

HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
(In Millions)

Three Months Ended
March 31,
------------------
2008 2007
-------- --------
Cash Flows From Operating Activities:
Net loss $ (9.8) $ (3.4)
Adjustments to reconcile net loss to cash used
in operating activities:
Net loss from discontinued operations - 0.2
Depreciation and amortization 1.1 1.3
Stock compensation 0.4 0.5
Goodwill impairment 7.0 -
Other adjustments (4.3) (0.3)
Changes in operating assets and liabilities:
Trade accounts receivable (13.8) (17.6)
Inventories (3.4) (6.3)
Trade accounts payable 1.3 9.9
Other (2.1) (5.5)
-------- --------
Total net cash used in operating activities (23.6) (21.2)
-------- --------
Cash Flows From Investing Activities:
Capital expenditures (0.4) (1.6)
Proceeds from disposition of capital assets 0.1 1.0
-------- --------
Total cash used in investing activities (0.3) (0.6)
-------- --------
Cash Flows From Financing Activities:
Borrowings and payments of debt, net 24.1 20.2
Exercise of stock options 0.7 -
-------- --------
Total cash provided by financing activities 24.8 20.2
-------- --------
Net increase (decrease) in cash and equivalents 0.9 (1.6)
Cash and equivalents, beginning of period 1.8 6.1
-------- --------
Cash and equivalents, end of period $ 2.7 $ 4.5
======== ========

Supplemental Disclosure of Cash Flow Information:
Interest paid $ 0.6 $ 1.1
Income taxes refunded (1.0) -
Cash received from exercise of stock options 0.4 -

HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS WORKSHEET
(UNAUDITED)
(In Millions)

Three Months Ended
March 31, 2008
----------------------------------------

As Reported Charges/Gain Adjusted
------------ ------------ ------------
Net sales $ 166.8 $ 166.8
Gross margin 32.1 (0.2) 31.9
Operating expenses 38.4 (0.5) 37.9
Goodwill impairment 7.0 (7.0) -
Gain on disposal of capital
assets - - -
------------ ------------ ------------
Operating profit (loss) (13.3) 7.3 (6.0)

Gross margin 19.2% 19.1%
Operating expenses margin 23.0% 22.7%
Operating profit (loss) margin -8.0% -3.6%

Three Months Ended
March 31, 2007
----------------------------------------

As Reported Charges/Gain Adjusted
------------ ------------ ------------
Net sales $ 222.4 $ 222.4
Gross margin 41.8 1.0 42.8
Operating expenses 46.1 (2.4) 43.7
Gain on disposal of capital
assets (0.5) 0.5 -
------------ ------------ ------------
Operating profit (loss) (3.8) 2.9 (0.9)

Gross margin 18.8% 19.2%
Operating expenses margin 20.7% 19.6%
Operating profit (loss) margin -1.7% -0.4%

Contacts:
Steve Anreder
Steven.Anreder@Anreder.Com

Gary Fishman
Gary.Fishman@Anreder.Com

both of Anreder & Company
for Huttig Building Products, Inc.
+1-212-532-3232

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