Window and door maker Quanex Building Products Corporation (NX) has expanded its product portfolio with the purchase of the assets of Atrium Windows and Doors Inc.'s Texas plant. Financial terms of the transaction were not disclosed.
The assets include six vinyl extrusion lines. The acquisition is in sync with Quanex’s plan to buy vertically integrated customer assets. It will help the company boost its manufacturing presence in the southern U.S. Further, the acquisition will allow Quanex to better serve customers in the new construction market.
On the other hand, Atrium will continue to extrude vinyl profiles in Welcome, N.C., and St. Thomas, Ontario. Additionally, Atrium has a long-term supply agreement with Quanex, which will continue to provide proprietary vinyl extrusion designs for Atrium from the Greenville plant.
Quanex Building reported earnings of 28 cents per share in the fourth quarter of fiscal 2013 (ended Oct 31, 2013), an around six-fold rise from 5 cents earned in the year-ago quarter. Revenues also improved 17% year over year to $275 million,
Quanex Building forecasts window shipments in the U.S. to increase by 12% in 2014, with new construction rising 22% and R&R (replacement and remodeling) expanding 6%. For fiscal 2014, the company expects revenues in the Engineered Products Group (:EPG) segment to rise 5%–6% over 2013 results.
However, due to uncertainty surrounding the new warehouse rules and their potential impact on net spreads, the company expects 2014 revenue growth for the Nichols group (Aluminum Sheet Products Group) to be in the mid to high single-digit range.
Houston, Tex-based Quanex Building is a leading manufacturer of engineered materials, components and systems, serving domestic and international window and door OEMs (original equipment manufacturers) through its Engineered Products and Aluminum Sheet Products Groups.
Quanex currently holds a Zacks Rank #3 (Hold).
Better ranked companies in the building and construction industry are CaesarStone Sdot-Yam Ltd. (CSTE), James Hardie Industries plc (JHX) and Armstrong World Industries, Inc. (AWI). While CaesarStone and James Hardie carry a Zacks Rank #1 (Strong Buy), Armstrong World holds a Zacks Rank #2 (Buy).
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