Quanex Building Products reported this week that net sales decreased to $195.1 million in the first quarter of 2017, compared to $201.5 million in the first quarter of 2016. The company said this was expected as it was reducing its stake in its U.S. vinyl profiles business.

“First-quarter results were in line with our expectations given the planned shrinkage in our U.S. vinyl profiles business,” said Bill Griffiths, president and CEO. “Excluding vinyl, revenue in our underlying North American window components businesses was flat year-over-year, which was a good result considering the abnormally strong first quarter last year. Our European business generated double-digit sales growth on a local currency basis compared to the first quarter of 2016, as did our cabinet components business as some customers built inventory in anticipation of price increases or transitioning to other suppliers. The consolidation of our U.S. vinyl profiles business is progressing well and will be complete by the end of the second quarter.”

Quanex posted a net loss of $3.7 million compared to $7.2 million in the first quarter of 2016.

Looking ahead, the company continues to forecast underlying sales growth of 5 percent to 6 percent for 2017, offset by the customer actions referenced above and a potential negative foreign currency translation impact, which could be approximately $15 million to $20 million for the year based on current exchange rates. Quanex expects to generate net sales of $880 million to $900 million.