Quanex reports wider loss in 2nd quarter

Building components maker Quanex Building Products Corp. posted a sharply wider second-quarter loss Thursday, citing the impact of the battered housing industry.

For the three-months ended April 30, the company lost $40.1 million, or $1.08 per share, compared with a loss of $5.3 million, or 14 cents per share in the year-earlier period. The most recent quarter included an after-tax impairment charge of $29 million, or 78 cents a share.

Sales declined 45 percent to $113.2 million from $207.3 million in the year-earlier quarter.

Analysts surveyed by Thomson Reuters had forecast a loss of 18 cents per share on $118 million in revenue.

David D. Petratis, president and chief executive officer, cited ongoing troubles in the housing market for the losses.

While there are some signs of optimism for the second half of the year, Petratis said the company will continue to keep inventories at conservative levels.

He noted that the company reduced companywide inventories by $22 million during the quarter.

Still, the company said negative economic factors will likely continue to drag down residential building rates and remodeling activity.