NSG Group Reports Drop in Revenue, Operating Profit in Q1 2021

NSG Group reported a drop in revenue and operating profit for each of its segments in the first quarter (Q1) of fiscal year (FY) 2021 (April through June 2020) compared to FY2020 Q1. In total, the company reported $859.9 million* in revenue in Q1 of FY2021 compared to $1.4 billion in the same period of FY2020, a 40% year-over-year decline. NSG experienced an operating loss of $5.6 million in the first quarter of 2021, compared to a profit of $82.3 million in the same period in 2020.

The results were affected by a reduction in demand associated with the global COVID-19 pandemic and, to a lesser extent, the translational impact of foreign exchange. However, the company reports it experienced a rebound in June.

Architectural Glass Segment

The Americas represent 21% of the company’s architectural sales. As in other regions, NSG Group suspended production at certain facilities to match output to the prevailing level of demand. Construction of the company’s new solar glass facility in North America continued during the quarter with a planned start date scheduled for the end of the calendar year 2020. However, construction of the new architectural glass facility in Argentina has been suspended.

Europe, which represents 36% of the company’s architectural sales, saw revenues fall due to lower volumes. Glass production was either suspended or significantly reduced at many of NSG’s European manufacturing facilities, although some lines returned to more normal production levels toward the end of the quarter.

In Asia, representing 43% of the company’s architectural sales, revenues were also below the previous year, although the decline was less significant than that experienced in Europe or the Americas. Profits improved however, partly due to robust sales of glass for solar energy, which were largely unaffected by COVID-19, and partly due to a reduction of costs in Japan.

FY 2021 Forecast

NSG Group expects total revenue of $4.3 billion in FY2021, compared to $5.2 billion in FY 2020. However, its FY2021 forecast shows an anticipated operating loss of $187.1 million compared to an operating profit of $177.8 million in FY2020.

The FY2021 forecast is based on the gradual demand recovery from the first quarter  throughout the year and the execution of an urgent cost savings project, aimed at restoring business profitability.

*Editor’s Note: The financial results were converted from Japanese Yen to U.S. dollars on August 12, 2020.

Quanex Reports Slight Drop in Net Sales, Operating Income

Quanex Building Products’ net sales and operating income were both down in the third quarter of 2020 compared to the same period last year. That’s according to the company’s third quarter 2020 results for the three months ended July 31, 2020.

Quanex’s Q3 2020 net sales were $212.1 million compared to $238.5 million in Q3 2019. Operating income dropped from $19.1 million in the third quarter of 2019 to $16.6 million the same quarter this year.

The company’s North American fenestration unit reported $109.5 million in U.S. fenestration sales for the third quarter of 2020, down from $119.5 million in the same period last year. It reported international sales of $6.7 million in Q3 2020 compared to $7.2 million in Q3 2019. Quanex’s EU fenestration unit showed the same trend, reporting $31.9 million in international fenestration sales this quarter compared to $36.3 million in the same period of 2019.

Quanex reported in its results that company leadership has been positively surprised by the pace at which demand for Quanex’s products has returned. As such, the company is now comfortable providing full year 2020 guidance of $832 million to $837 million in net sales and $97 million to $102 million in adjusted EBITDA.

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