Quanex Building Products Posts Loss in Second Quarter

Date: 16 June 2011
Source: http://www.dwmmag.com
Quanex Building Products Corp. reported a diluted loss from continuing operations of $0.04 per share in its fiscal 2011 second quarter results released yesterday for the period ending April 30, 2011.

The quarter included Edgetech transaction costs of $0.03 per share.

Additionally, the company reports that second-quarter earnings from continuing operations were down from a year ago primarily due to weaker results at the Engineered Products Group (EPG), which had both lower sales and higher organic growth initiative expenses.

Second-quarter revenue for EPG was $82.5 million, which included one month of Edgetech sales of $6.4 million, and was lower than a year ago as demand at that time benefitted from two housing related tax credit programs, according to the company. Operating income of $1.9 million was down from a year ago due to lower revenue and higher growth initiative costs of about $0.6 million. EPG’s income included one month’s operating loss at Edgetech of $0.9 million. Those Edgetech results were negatively impacted by a step-up in inventory expense related to the purchase method of accounting of $0.9 million.

With the purchase of Edgetech on March 31, its successful integration into EPG remains a high priority and good progress was made in the first month. Teams were assigned to this critical task and integration is on schedule. For the second half of fiscal 2011, Edgetech’s results are estimated to be sales of about $45 million; depreciation and amortization of about $4 million; and operating income of about $2 million. These second-half results do not include $2 million to $3 million of expected annualized synergies.

Quanex estimates a more normalized 12-month run rate for Edgetech, post the step-up in inventory, of: sales of about $80 million; depreciation and amortization of about $8 million; and operating income of about $5 million. These estimates do not include any synergies and are subject to change.

Quanex had a cash balance of $57.7 million and total debt outstanding stood at $2.0 million at the end of the quarter. The company used $104.4 million to acquire Edgetech and used $6.4 million to purchase the lineal extrusion assets of Jeld-Wen’s Yakima, Wash., facility. Cash used by operating activities from continuing operations for the first half of 2011 was $5.4 million.

The company’s $270 million revolving credit facility remained untapped, but due to the facility’s covenant requirements, the available capacity at quarter end was $214.7 million. Future uses of cash could be to fund organic growth activities, fund the common stock dividend, make acquisitions, and repurchase outstanding shares.

600450 Quanex Building Products Posts Loss in Second Quarter glassonweb.com
Date: 16 June 2011
Source: http://www.dwmmag.com

See more news about:

Others also read

Proprietary laminate windows collect, store energy; convert it to electricityRIVIERA BEACH, FL – An innovative new patented technology transforms office building windows into "solar farms" and allows these structures to reuse collected energy and become self-sufficient in the event of a power outage.
DALLAS, Texas, December 22, 2011 /PRNewswire/ --ReportsnReports adds new market research report 'Solar Photovoltaic (PV) Power - Global Market Size, Installation Prices, Module Market Shares, Market Segmentation, Regulations and Key Country Analysis to 2020' to its store.
The University of Minnesota's historic Folwell Hall completed three years of extensive renovation, just time for the 2011 academic year.
Michael Gai has been named Vice President of Operations at Glass Doctor, following the recent promotion of Mark Liston to President.
We sincerely thank all our members, friends and visitors for being part of GlassOnWeb and its success during 2011.
COLUMBUS, Ohio – Dec. 19, 2011 – Safelite AutoGlass®, the nation’s largest provider of vehicle glass repair and replacement services with a fleet of 6,000, announced it will transition to Ford®.

Add new comment