Gibraltar Industries, Inc.
) recently acquired the assets of a Nev.-based solar-powered
ventilation products supplier for $5.0 million, paid through
available cash in hand. The acquisition added another product
line to Gibraltar Industries' product portfolio.
The acquired solar-powered ventilation products business
generated roughly $4.0 million revenues in 2012. This business
will enable Gibraltar Industries to achieve success in the energy
conservation segment of the new construction and home remodeling
Exiting the second quarter of 2013, Gibraltar Industries had
roughly $44.6 millionof cash and cash equivalents. These funds
were to be utilized in business development through acquisitions
as well as reinvestments in the business.
Prior to this, Gibraltar Industries acquired three product
lines between Nov 14, 2012 and Dec 28, 2012. These included sun
protection products for new residential construction and home
remodeling; function-critical components for public
infrastructure construction and maintenance; and perforated metal
products for industrial and automotive applications.
The funding of acquisitions reduced the cash balance of the
company by $41.0 million. These acquisitions have contributed
immensely to Gibraltar Industries' revenues since. In the second
quarter of 2013 roughly 7.3% of the revenue growth was a result
of these acquisitions.
Gibraltar Industries expects to see a decline in the organic
revenues in the second half of 2013, owing to a weakness in the
industrial markets. However, the acquisitions are expected to
offset the decline to some extent.
The company manufactures and distributes products to the
industrial and buildings market. The products range from
ventilation and expanded metal to mail storage solutions and rain
dispersion products and solutions. Gibraltar Industries has a
market capitalization of $425.7 million.
Gibraltar Industries currently carries a Zacks Rank #4 (Sell).
Other stocks worth a watch in the steel sector are
Companhia Siderurgica Nacional
). While Companhia Siderurgica Nacional carries a Zacks Rank #1
(Strong Buy), Gerdau and Ternium carry a Zacks Rank #2 (Buy).
GERDAU SA ADR (GGB): Free Stock Analysis
GIBRALTAR INDUS (ROCK): Free Stock Analysis
CIA SIDERUR-ADR (SID): Free Stock Analysis
TERNIUM SA-ADR (TX): Free Stock Analysis
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