Quanex Reports Slight Decrease in Net Sales in First QuarterMarch 6th, 2020 by Emmariah Holcomb
Quanex Building Products (Quanex) released its first quarter financial report, which ended on January 31, 2020 and highlighted its market growth in the European fenestration segment.
“Demand for our fenestration components remained strong in Europe and volumes were in line with our expectations in North America,” said George Wilson, Quanex president and CEO. “On a consolidated basis, we were able to realize Adjusted EBITDA margin expansion of approximately 190 basis points in the first quarter, led again by our European segment where those margins improved by 100 basis points.”
According to the report, the company’s net sales for the quarter were $196,597, which represents a slight decrease when compared to the $196,808 result in last year’s first quarter.
The net sales decrease was driven by volume loss in the North American cabinet components segment, according to the report. Quanex’s North American fenestration sales segment resulted in $96,847, an improvement from the 2019 result of $93,884. Its EU fenestration market also showed improvement with a $30,964 first quarter sales total, which is up from $30,724 from last year.
“We had a good start to fiscal 2020 and we are optimistic looking ahead into the spring selling season as leading indicators for residential housing remain favorable,” said Wilson. “As such, we are reaffirming our full year 2020 guidance of $865 million to $885 million in net sales and $102 million to $110 million in adjusted earnings before interest, tax, depreciation and amortization (EBITDA).”