Quanex Building Products  reported a net loss of $7.2 million for the first quarter of 2016, although earnings before interest, taxes, depreciation and amortization (EBITDA) during the period were $10.8 million, up from $2.3 million in the same period last year.

Quanex generated strong net sales of $201.5 million during the first quarter of 2016, an increase of 58 percent compared to the first quarter of 2015.  The company cited the acquisitions of HL Plastics and Woodcraft Industries in 2015, combined with steady growth among all other product lines, for the big jump.

“Despite the fact that the first quarter of each year is typically challenging for our industry, we are off to a strong start in 2016, and at this time we are confident the full year 2016 guidance we previously provided is achievable,” Quanex CEO Bill Griffiths said in a statement. “Our continued focus on operational excellence is the primary reason for the margin improvements during the quarter, most notably in our vinyl profiles business in North America. As stated previously, we anticipated realizing benefits of the capital investment we made in this business by the end of 2015.  We clearly saw the positive impact of this in the fourth quarter and that improvement carried forward into the first quarter of 2016. In addition, the integration of HL Plastics and Woodcraft is progressing as planned and both had a positive impact on first quarter results.”

 

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