Quanex Corporation Quarterly Update - Fiscal Fourth Quarter 2003
October 27 2003 - 3:29PM
PR Newswire (US)
Quanex Corporation Quarterly Update - Fiscal Fourth Quarter 2003
HOUSTON, Oct. 27 /PRNewswire-FirstCall/ -- Quanex Corporation , an
industry-leading manufacturer of engineered materials and
components for the Vehicular Products and Building Products
markets, today confirmed that it expects to report fourth quarter
diluted earnings per share in a range of $.72 to $.82 when it
announces results on December 4, 2003. The Company stated that it
is experiencing better than expected operating results at both its
Vehicular Products and Building Products segments. However, due to
continuing increases in the cost of its raw materials, primarily
steel and aluminum scrap, the Company will be required to take a
sizable non-cash charge to earnings as it re-values its fiscal
year-end inventories using the last in -- first out (LIFO) method
of accounting. The impact of that charge is reflected in the
Company's range. The Vehicular Products segment, which includes
MACSTEEL, Piper Impact and Temroc Metals, is expected to report
higher sales and lower operating income when compared to last
year's fourth quarter. MACSTEEL, the largest division within the
segment, expects to report higher sales, even though light vehicle
builds for the quarter versus a year ago look to be down 5% in
total and 10% at the "Big 3". Operating income for MACSTEEL will be
down from a year ago due to higher scrap and energy costs. Piper
Impact is expected to report a smaller loss for the quarter versus
a year ago as it continues to reduce costs. The Building Products
segment, which includes Engineered Products and Nichols Aluminum,
is expected to report higher sales and similar operating income
versus last year's fourth quarter results. Engineered Products, the
segment's door and window components division, expects sales to be
flat while operating income will be up somewhat compared to last
year's excellent results. Business activity at the division
continues at a strong pace. Nichols Aluminum expects slightly
higher volumes and a somewhat lower spread for the quarter, which
will result in lower operating income versus last year. The primary
drivers for the Company's products are North American light vehicle
builds, housing starts and remodeling expenditures. Quanex expects
the light vehicle build rate for 2003 to be between 15.5 and 16
million units, down from 16.6 million units in 2002. Both housing
starts and remodeling expenditures are expected to be slightly
higher from last year's healthy levels and the underlying
fundamentals remain excellent. Statements that use the words
"expect," "should," "will," "might," or similar words reflecting
future expectations or beliefs are forward-looking statements. The
statements above are based on current expectations. Actual results
or events may differ materially from this release. Factors that
could impact future results may include, without limitation, the
effect of both domestic and global economic conditions, the impact
of competitive products and pricing, and the availability and cost
of raw materials. For a more complete discussion of factors that
may affect the Company's future performance, please refer to the
Company's most recent 10-K filing of December 20, 2002 under the
Securities Exchange Act of 1934, in particular the sections titled,
"Private Securities Litigation Reform Act" contained therein. Note:
It is the Company's intention to make this release a routine event,
once per quarter, approximately 35 days before it releases its
quarterly earnings report. Contacts: Jeff Galow, 713/877-5327
Valerie Calvert, 713/877-5305
http://www.newscom.com/cgi-bin/prnh/19990517/NXLOGO
http://www.newscom.com/cgi-bin/prnh/20010522/DATU048
http://photoarchive.ap.org/ DATASOURCE: Quanex Corporation CONTACT:
Jeff Galow, +1-713-877-5327, or Valerie Calvert, +1-713-877-5305,
both of Quanex Corporation Web site: http://www.quanex.com/
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