Quanex Reports Drop in Consolidated Net Sales for Second QuarterJune 4th, 2012 | Category: Industry News
Quanex Building Products Corp. has reported second-quarter consolidated net sales totaling $194.4 million, down from $203.1 million a year ago.
The company also reported an operating loss of $0.34 per diluted share compared to an operating loss of $0.04 per diluted share a year ago, according to the company’s most recent financial report.
The company Engineered Products Group (EPG) saw second-quarter net sales of $108.8 million, compared with $82.5 million for the same period last year. According to the release, the increase in sales “was predominantly related to higher vinyl extrusion sales at Mikron, and the benefit of a full quarter’s results from Edgetech compared to its one month’s results in the year ago quarter.”
The release also states operating income was $0.1 million for EPG’s second quarter of this year (operating income totaled $1.9 million a year ago). Additionally, the expenses related to its facility consolidation were $3.7 million in the quarter. The company had previously announced that it would close its Barboursville, Ky., plant, and would relocate the equipment to manufacture its single-seal warm-edge spacer system to its Cambridge, Ohio, facility.
“With the spring building season underway, EPG is expected to report operating income of about $30 million in the second half of 2012, which excludes $3 million of IG spacer consolidation program expenses,” the release states.
The consolidation is expected to be complete this August. “The consolidation remains on budget and is ahead of schedule. Cash costs associated with the plan have been estimated at about $16 million (excludes a pre-tax, non-cash impairment charge of $1.6 million taken in the fourth quarter 2011),” the release states. “The company expects a payback period on its investment of about 2.6 years, based on annual pre-tax cash savings of $9 million, once the consolidation is concluded.”