Quanex Building Products 3Q profit plunges 83 pct
HOUSTON (AP) — Housing materials maker Quanex Building Products Corp.'s on Tuesday said its fiscal third-quarter net income dropped 83 percent, as revenue declined on weaker results from its aluminum sheet products unit.
The company earned $1.5 million, or 4 cents per share, for the three months ended July 31. That compares with earnings of $9 million, or 24 cents per share a year earlier.
The results included costs of 3 cents per share related to a strike at its Nichols Aluminum plant in Davenport, Iowa, from January through April. Quanex also recorded a 4-cents-per-share charge related to consolidating facilities in Kentucky and Ohio. Charges related to corporate expenses totaled 3 cents per share.
Excluding unusual items, adjusted earnings were 12 cents per share.
Analysts, on average, were expecting earnings of 22 cents per share, according to FactSet. Analyst estimates typically do not include one-time costs and gains.
Quanex said revenue fell 6 percent to $237.9 million, from $252.4 million, missing Wall Street's $251.1 million forecast.
Sales from the aluminum sheet products division softened. Aluminum sheet shipments declined mostly because of a temporary equipment-related outage at its casting plant.
For the engineered products unit, sales rose primarily because of increase vinyl extrusion sales.
Shares of Quanex, based in Houston, fell 12 cents to $17.38 in late morning trading.