Quanex Building Products Corp. has withdrawn its prior guidance for 2020 in an update provided in response to the COVID-19 pandemic.

First and foremost, the health and safety of our employees and communities is our primary focus. We are taking appropriate safety measures throughout our plants, and following applicable CDC and governmental guidelines, in an effort to protect our employees and their families while continuing to service our customers and provide vital components for important construction projects around the world. All of our manufacturing facilities are currently operating in compliance with applicable regulatory orders, other than our two facilities in England which are currently closed in accordance with the United Kingdom’s shutdown order,” says George Wilson, president and CEO. “It is difficult to predict how this pandemic will ultimately impact our company and our end markets, so we believe it is prudent to withdraw our prior guidance for 2020. That said, our balance sheet remains strong and we have a highly variable cost structure, which gives us the ability to rapidly reduce costs as demand dictates. As such, we feel our business is well-equipped to handle the challenges ahead and we are confident that we will weather this storm.”

As a precautionary measure, and in an effort to increase its cash position and preserve financial flexibility due to uncertainty surrounding the COVID-19 pandemic, Quanex elected to draw an additional $50 million from its $325 million Senior Secured Revolving Credit Facility due 2023. The proceeds are available to be used for working capital and general corporate purposes. Quanex currently has approximately $70 million of cash on hand and approximately $100 million of capacity remaining under the credit facility.

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