FinancialFlash ,USGlass,April2012

Volume 47, Issue 4 - April 2012

FinancialFlash

Quanex First-Quarter Net Sales Up 1.1 Percent from a Year Ago

Quanex Building Products Corp. of Houston, the parent company of Edgetech IG, has reported that its 2012 first-quarter consolidated net sales were $161.6 million, compared to $159.8 million a year ago, and included Edgetech net sales of $18.9 million.

Quanex sustained a first-quarter operating loss of $0.18 per diluted share, compared to an operating loss of $0.13 per diluted share a year ago.

The Engineered Products Group’s (EPG) first-quarter 2012 net sales were $99.4 million, compared to $84.0 million a year ago,and included net sales of $18.9 million at Edgetech. The EPG’sfirst-quarter operating income was $1.8 million, compared to an operating loss of $0.7 million a year ago, and included an operating loss of $1.1 million at Edgetech. Segment expenses associated with the IG spacer consolidation program were $2.5 million in the quarter, $0.4 million of which were included in Edgetech’s operating loss. First-quarter 2011 operating loss of $0.7 million included $5.2 million of consolidation and warranty reserve costs.

AGC 2011 Net Income Down 22.6 Percent
Asahi Glass Co. (AGC) of Japan posted net sales of $15.8 billion USD (1,214.7 billion yen) for 2011, a 5.8 percent decrease from the previous year, according to the company’s recently released financial report for the year.

Operating income decreased by 27.7 percent year-on-year, and net income was down 22.6 percent on a year-on-year basis.

In the architectural glass business, shipments in Japan for the full year increased over the previous year due to strong demand, despite slumping temporarily in the first half of the fiscal year following the earthquake in Japan, according to the company. Shipments in Asia for the full year also increased from the previous fiscal year, supported by generally favorable demand, despite a decline in the fourth quarter caused by the effects of floods in Thailand.

Shipments of glass in North America remained sluggish, AGC officials report. The company further predicts that the “pace of economic recovery is expected to remain weak” in North America—though company officials do expect a modest recovery there.

Vitro Reports Decline in Sales for 2011 Fourth Quarter
Officials at Vitro S.A.B. de C.V. of Mexico reported a 1.5 percent drop in consolidated net sales for the fourth quarter of 2011, when compared with the same period in 2010.

Consolidated EBITDA increased 37.7 percent from 2010 to 2011. Company officials attribute this increase to the recovery of $33 million through the company’s insurance claims related to damages caused by Hurricane Alex.

“With respect to Vitro’s debt restructuring process, on February 7, 2012, Vitro was notified that the judge overseeing the company’s concurso mercantil proceedings issued her final ruling approving the restructuring plan filed by the conciliador and approved by the majority of the recognized creditors and Vitro, which provides for the replacement of the guarantees that were previously granted by Vitro’s subsidiaries,” says Hugo Lara, CEO. “Furthermore, on February 23, 2012, Vitro consummated the concurso plan and completed its debt restructuring under the Mexican insolvency plan. We are very pleased with this ruling and the completion of our restructuring, which undoubtedly is a turning point in Vitro’s more than century old history.”

Company officials say net free cash flow increased by $65 million for the quarter, reflecting higher EBITDA, a lower capital expenditure, as most investments were scheduled in previous quarters, and a recovery in working capital consistent with typical business seasonality.