Quanex Building Products Corporation
) reported earnings of 13 cents per share in the third quarter of
2013, a more than threefold increase from 4 cents earned in the
year-ago quarter. Reported earnings were a penny ahead of the
Zacks Consensus Estimate.
The results benefited from higher sales in all the divisions
and cost savings from facility consolidation, but partly offset
by higher information technology and Enterprise Resource Planning
(ERP) implementation costs.
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Revenues improved 9% year over year to $259 million, but fell
short of the Zacks Consensus Estimate of $266 million. Results
were aided by the inclusion of sales related to the Aluminite
acquisition and higher sales across all the divisions.
Cost of sales during the quarter increased 7% to $215 million
from $201 million in the prior-year quarter. Gross profit
increased 18% to $44 million. Consequently, gross margin expanded
130 basis points to 17% in the quarter.
Selling, general and administrative expenses decreased 7% to
$24.7 million. Operating profit was $7.1 million in the third
quarter compared with $1.4 million in the prior-year quarter.
Engineered Products Group (EPG):
Net sales at the segment spiked 17% to $157 million in the
quarter. Operating income for the segment increased 42% to $18.6
million in the third quarter from $13 million in the year-ago
Aluminum Sheet Products:
The segment reported sales of $105 million, down 2% year over
year. However, the segment reported an operating loss of $0.5
million in the quarter, narrower than the year-ago quarter's loss
of $3.2 million. The segment's profits were negatively impacted
by product mix, with increased demand for mill finished product,
which commands a lower price when compared to painted sheet.
Cash and cash equivalents were $16 million as of Jul 31, 2013
compared with $71 million as of Oct 31, 2012. Long-term debt
declined to $0.7 million as of July 31, 2013, compared with $1
million as of Oct 31, 2012. Cash flow from operating activities
was $6.6 million in the nine months ended Jul 31, 2013 compared
with $6 million in the year-ago comparable period.
Houston, Texas-based Quanex Building Products Corporation is a
leading manufacturer of engineered materials, components and
systems, serving domestic and international window and door OEMs
through its Engineered Products and Aluminum Sheet Products
Quanex currently retains a Zacks Rank #4 (Sell). Other companies
in the building and construction industry with favorable Zacks
CaesarStone Sdot-Yam Ltd
), with a Zacks Rank #1 (Strong Buy), while
Drew Industries Inc.
) carry a Zacks Rank #2 (Buy).