Quanex Corp. announced that it expects to report record fiscal third quarter diluted earnings per share from continuing operations when results are announced on August 25, 2005.

Diluted earnings per share from continuing operations are expected to be in the range of $1.60 to $1.65 compared to the $0.82 the company reported in the year-ago quarter, and some 15% higher than the company's previous guidance on May 26, 2005.

Quanex’s Vehicular Products segment expects to report record net sales and operating income for the quarter, up significantly compared to year-ago results. Operating income for the segment is expected to be considerably higher due to moderating scrap costs and higher base selling prices, partially offset by a decrease in demand. Benefits from the integration of MacSteel Monroe continue to bolster the group as well. Primary drivers for the segment are North American light vehicle builds and heavy duty truck builds.

Quanex’s Building Products segment also expects to report record net sales and operating income for the quarter compared to the year-ago period. While weather conditions adversely impacted the door and window components operations early in the quarter, healthy market conditions in the aluminum sheet business and better-than-expected results at Mikron Industries (acquired 12/09/04) will more than offset the impact. The segment's primary market drivers are housing starts and remodeling activity.

Quanex Corp. is an industry-leading manufacturer of value-added engineered materials and components for the vehicular products and building products markets.