Quanex Looks to Higher End of Earnings Guidance
07/26/2007 - Quanex expects to report fiscal third quarter 2007 diluted earnings per share from continuing operations in a range of $0.94 to $0.98, including an estimated $0.03 per share non-cash LIFO charge.
Quanex Corp. says that it expects to report fiscal third quarter 2007 diluted earnings per share from continuing operations in a range of $0.94 to $0.98, including an estimated $0.03 per share non-cash LIFO charge. Previous guidance for the quarter was $0.90 to $0.98 per diluted share, including an estimated non-cash LIFO charge of $0.03 per share.
The company expects Vehicular Products, whose primary market driver is North American light
vehicle builds, to report higher net sales and lower operating income in the quarter compared to the fiscal third quarter 2006. The company says that operating income will be down from the year-ago period due to volatile raw material costs (including a spike in metal alloy costs during the quarter). Going forward, these higher costs will be recovered through MacSteel's alloy surcharges. Shipped tons at MacSteel should be about flat to the year-ago quarter, with the three steel mills operating above 90% capacity.
The company expects Building Products, whose primary market drivers are U.S. housing starts
and remodeling activity, to report lower net sales and operating income in the quarter compared to the fiscal third quarter 2006.
While housing starts are estimated to be down 22% compared to the fiscal third quarter last year, net sales at Engineered Products, a producer of window and door components, are expected to be down only 5% over the same period due to the strength of new programs. Operating income at Engineered Products is anticipated to be up from a year ago due to relatively strong operating results at each of the business units. Shipped pounds at Nichols Aluminum, a producer of aluminum sheet products, are expected to be off 12% compared to the year-ago quarter, and material spreads will be in line with last year. Operating income at Nichols Aluminum is expected to be down from the fiscal third quarter 2006 due to the lower shipments.
Quanex expects to announce results on August 28, 2007.
Quanex is an industry-leading manufacturer of value-added engineered materials and components for the vehicular products and building products markets.
