Volume 47, Issue 11- November 2012

FinancialFlash


Quanex Reports Drop in Consolidated Net Sales, While EPG Sales are Up

Quanex Building Products Corp.’s sales declined 5.7 percent for the third-quarter of fiscal year (FY) 2012, from $252.4 million for the same period a year ago to $237.9 million.

The company’s Engineered Products Group (EPG), which is focused on door and window components and systems, was up, though, with third-quarter net sales of $134.1 million, compared to $124.1 million a year ago. The company attributes the 8 percent improvement in sales to higher vinyl extrusion sales.

The EPG’s third-quarter 2012 operating income was $13.1 million, compared to $14.1 million a year ago. According to the company, these figures include an insulating glass (IG) warranty benefit from a change in estimate of $800,000. In addition, expenses related to the consolidation of its Barbourville, Ky., and Cambridge, Ohio, IG facilities were $2.5 million in the quarter. According to the release, the Barbour facility is now closed and is being prepared for sale.

Glaston Releases Report on First Half-Year of 2012
Glaston Corp. says its orders from January to June totaled $75.5 million U.S. dollars ($66 million Euros) with $36.7 million in the second quarter.

Consolidated net sales for January-June totaled $75.9 million, while second-quarter net sales were $41.6 million.

Glaston’s operating result for January-June was a loss of $400,000 U.S. dollars. The second-quarter operating result showed a loss of $1.3 million.

“Owing to global economic uncertainty, market conditions remained challenging,” says president and CEO Arto Metsänen. “Despite the difficult operating environment, Glaston managed to maintain its market position.”

Company officials report that they expect the company’s 2012 net sales to be at least at the 2011 level and that the operating result excluding non-recurring items will be positive.

PPG Posts Decline in Glass Segment Sales
Glass segment sales from 2012 fell $11 million from the year prior to $262 million, according to PPG Industries’ third-quarter report. Lower pricing and a negative foreign currency translation counterbalanced rising flat glass volumes. Segment earnings rose $1 million from the prior-year quarter, to $24 million.

The report goes on to note segment sales of architectural coatings in Europe, the Middle East and Africa (EMEA) fell $9 million, or 2 percent from last year from $573 million to $564 million. Despite the January acquisition of Dyrup which increased sales 8 percent, currency translation negatively impacted sales by an estimated 11 percent. In addition the report states the higher global protective coatings volume offsets the weakening architectural demand and marine new build progress.

Segment earnings increased to $203 million by 7 percent. The nine months ended September 30, 2012 ended with business restructuring charges of $46 million for the industrial coatings segment and $63 million for the architectural coatings of EMEA. The daily sales of U.S. architectural coatings slightly increased with low- to mid-single-digit percentages. The strongest of these results comes from company-owned stores. Industrial coatings segment sales for the quarter also saw growth and were up 5 percent at a total of $1.1 billion, an increase from the year prior of $51 million.

As a whole, PPG’s net income improved from 2011's $311 million, $1.96 per diluted share, to 2012's quarter net income of $339 million, $2.18 per diluted share. This total includes nonrecurring charges. Net sales remain unaffected from its 2011 third quarter to the 2012 quarter at $3.8 billion.


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