Quanex Building Products Climbs on Higher 3Q Sales

Dow Jones
Sep 04
 
 

Shares of Quanex Building Products rose after the company posted higher sales in its fiscal third quarter.

The stock gained 18%, to $22.14, late Friday morning and is up 44% this year.

Quanex said sales rose 1.3%, to $501.8 million, in the quarter. Revenue was boosted by favorable pricing in the company's extruded-solutions segment, and increased volume in custom solutions.

The Houston company swung to a profit of $26.5 million, or 58 cents a share, from a loss of $276 million, or $6.04, the year before.

Quanex made meaningful progress in addressing the imbalance between price and cost, which squeezed margins in the second quarter, Chief Executive George Wilson said.

The inflationary pressures from the war in the Middle East and other macroeconomic factors have somewhat subsided, he added.

The company also paid off $42.25 million of its debt and bought back some shares during the quarter. It plans to continue prioritizing debt payments and buybacks.

 
 

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