Quanex Building Products Releases Fiscal Third-Quarter 2009 Results

September 8th, 2009 by Editor

Quanex Building Products Corp. released its fiscal third-quarter 2009 results recently for the period ending July 31.The company’s Engineered Products Group, which is focused on providing OEM door and window customers with value-added fenestration components, products and systems, was down but the company says that some of its customers picked up market share.With net sales of $164.0 million, the company reported income from continuing operations of $8.1 million. The company reported that a better than expected pickup in seasonal demand at its two operating groups, Engineered Products and Aluminum Sheet Products, together with an improved aluminum spread (sales less material costs), bolstered financial results.

“The U.S. residential housing market dropped 42 percent in our third quarter compared to a year ago, while residential remodeling activity was estimated to be off about 15 percent,” says David D. Petratis, president and chief executive officer. “The Engineered Products segment outperformed the market with third-quarter sales down 19 percent from the year ago period, and we believe some key OEM window and door customers picked up market share. Our sales improved throughout the quarter as the much awaited seasonal pick-up in residential building activity finally arrived, and that demand was better than we had originally forecasted. The segment’s operating income was a respectable $11.2 million, the result of higher volumes and continuing to operate the businesses in a very lean manner.

He added that while the company expects the seasonal improvement to benefit Engineered Products’ fourth quarter operating results, it remains cautious about the health of the overall market as both new and existing home inventories remain at high levels.

“As we have done all year, we will continue to size our business and inventories at conservative levels,” he adds.

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