July 22, 2002
Quanex Corporation Quarterly Update - Fiscal Third Quarter 2002
HOUSTON, July 22 /PRNewswire-FirstCall/ -- Quanex Corporation (NYSE: NX),
an industry-leading manufacturer of engineered materials and components for
the Vehicular Products and Building Products markets, announced today that it
expects to report third quarter diluted earnings per share some 30% greater
than the $.67 reported a year ago when it announces results on
August 29, 2002.
Quanex's Vehicular Products segment, which includes MACSTEEL, Piper Impact
and Temroc Metals, is expected to report better third quarter operating
results compared to a year ago. MACSTEEL's operating income is expected to be
up about 15% due to robust vehicle demand, strong operating leverage, market
share gains and more value-added sales.
Quanex's Building Products segment, which includes Engineered Products and
Nichols Aluminum, is expected to report operating income improvements some 50%
over year ago results. The two divisions continue to benefit from strong
order entry, firmer pricing, new programs at Engineered Products and the
additive impact of Colonial Craft.
The primary drivers for the Company's products are the North American
vehicular build rate, housing starts and remodeling expenditures. Quanex now
expects the vehicular build rate for calendar 2002 to exceed 15.5 million
units, up slightly from last year. Housing starts and remodeling expenditures
for the year are expected to be in-line with last year. Segment operating
results continue to benefit from productivity gains, the result of on-going
lean manufacturing process improvements and a company-wide purchasing
initiative launched last year.
Statements that use the words "expect," "should," "will," "might," or
similar words reflecting future expectations or beliefs are forward-looking
statements. The statements above are based on current expectations. Actual
results or events may differ materially from this release. Factors that could
impact future results may include, without limitation, the effect of both
domestic and global economic cost of raw materials. For a more complete
discussion of factors that may affect the Company's future performance, please
refer to the Company's most recent 10-K filing (January 4, 2002) under the
Securities Exchange Act of 1934, in particular the sections titled, "Private
Securities Litigation Reform Act" contained therein.
Note: It is the Company's intention to make this release a routine event,
once per quarter, before Quanex releases its regular quarterly earnings
For further information visit the Company website at www.quanex.com .
Contacts: Jeff Galow, 713/877-5327
Valerie Calvert, 713/877-5305
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SOURCE Quanex Corporation
Web site: http: //www.quanex.com
Photo: NewsCom: http: //www.newscom.com/cgi-bin/prnh/19990517/NXLOGO PRN Photo Desk, 888-776-6555 or 212-782-2840
Company News On-Call: http: //www.prnewswire.com/comp/117216.html
CONTACT: Jeff Galow, +1-713-877-5327, or Valerie Calvert, +1-713-877-5305, both of Quanex Corporation
CAPTION: NXLOGO QUANEX CORPORATION LOGO Quanex Corporation logo. (PRNewsFoto)[HD] HOUSTON, TX USA 05/17/1999