June 2007 -- Quanex Corp., manufacturer of engineered materials and components for the motor vehicle and building products industries, reported lower fiscal first quarter 2007 results for the period ending Jan 31, 2007. Net sales were $417.6 million compared with $444.6 million a year ago, and income from continuing operations was $20.0 million versus $33.5 million in the year ago period.
The results are attributed to weaker demand.
"Light vehicle builds in our first quarter were down 7% compared to a year ago, but the outlook calls for a gradual increase in builds as the year progresses," said Raymond A. Jean, chairman and CEO.
Jean adds, "The downturn in the housing market continues, with housing starts off 28% compared to our first quarter last year, the result of the significant inventory overhang in the market. With homebuilders sharply curtailing construction, engineered products sales and operating income substantially lagged year ago results. We do expect a seasonal lift in our second quarter, followed by a gradual upturn to more sustainable trend levels in the second half of the year."
