) in a business update reaffirmed its fiscal 2013 EBITDA
(Earnings before interest, income tax, depreciation and
amortization) guidance and its long-term goals. The update was
presented at the Investor Day Conference in Salt Lake City, UT.
HEADWATERS INC (HW): Free Stock Analysis
JAMES HARDI-ADR (JHX): Free Stock Analysis
MASCO (MAS): Free Stock Analysis Report
TREX COMPANY (TREX): Free Stock Analysis
To read this article on Zacks.com click here.
Headwaters confirms that adjusted EBITDA for 2013 will be in the
range of $110 million to $125 million. Headwaters is committed to
strengthening its liquidity by reducing debts and driving
efficiencies, thereby reducing costs.
Macro drivers comprising population growth, household formation,
inventory trends and psychology of customers facilitate the
company's long-term growth. Headwaters will be successful in
achieving its goal largely due to multi-year appreciation cycle
and positive remodel trends in the housing market, which will
provide significant opportunities to serve the residential real
estate end markets.
According to the company, the light building products segment
will expand its top line, driven by new product development and
geographic expansion through acquisitions. At the same time,
increased demand for cement in the U.S. will enhance the
performance of heavy construction materials segment.
Headwaters, in Jan 2013, reported a loss per share of 9 cents in
the first-quarter 2013 compared with the year-ago loss of
39 cents per share. Total revenues for the quarter increased 9%
to $149.6 million, reflecting its exposure to new residential
construction and increased retail sales.
The company is well positioned to benefit from its strong
presence in light building products and heavy construction
materials. Strong contribution margins together with the up-cycle
in demand will help Headwaters to generate strong cash,
facilitating debt reduction and promising capital return to
South Jordan, UT based Headwaters is a diversified growth company
providing building products, technologies and services to the
heavy construction materials, light building products, and energy
Headwaters currently retains a Zacks Rank #3 (Hold).
James Hardie Industries plc
Trex Co. Inc.
) also belong to the building and construction industry. Each of
them holds a Zacks Rank #2 (Buy).