Quanex cuts outlook due to weakness in housing

Quanex Building Products Corp. on Thursday lowered its forecast for operating income for the fiscal year that ends in October, citing weakness in its aluminum business.

Quanex said it expects to generate about $75 million in operating income for the fiscal year, down $5 million from the previous forecast, due mostly to weakness in its Nichols Aluminum unit, where shipped pounds in the third quarter fell 11 percent from a year ago.

Chief Executive David D. Petratis said the company is still in "a very difficult housing market" and doesn't expect any near-term improvement in the situation.

But the company said it expects higher demand for engineered products, partly based on an uptick in remodeling.

Quanex makes aluminum sheet and engineered building products such as window and door components for housing and other types of construction.

Houston-based Quanex updated the outlook as it released results for its fiscal third quarter, in which profit plunged to $8.8 million, or 24 cents per share, from $38.6 million, or 98 cents per share, a year earlier. Sales also declined to $240.3 million from $269.5 million a year earlier.

Shares of Quanex fell 16 cents to $16.14 in morning trading.