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Oct 31, 2020
Quanex Q4 2020 Earnings Report
Quanex's business performed extremely well, navigating the complications and uncertainty of a COVID-19 world, with strong demand and increased net sales.
Key Takeaways
Quanex reported a strong fourth quarter with increased net sales and effective navigation of COVID-19 challenges. The company saw increased demand, particularly in Europe, and improved cash generation. They also repaid $35 million of bank debt during the quarter.
Consolidated net sales increased 6.3% year-over-year compared to Q4 2019.
Volumes were especially strong in Europe.
Company repaid $35 million of bank debt during the fourth quarter.
Liquidity increased to $268.8 million as of October 31, 2020.
Quanex
Quanex
Forward Guidance
Quanex expects mid-to-high single-digit sales growth in North American Fenestration segment, low single-digit sales growth in North American Cabinet Components segment, and mid-single-digit sales growth in European Fenestration segment. Overall, the company expects net sales of approximately $900 million to $920 million and Adjusted EBITDA between $108 million and $118 million in fiscal 2021.
Positive Outlook
- Mid-to-high single-digit sales growth in North American Fenestration segment expected.
- Low single-digit sales growth in North American Cabinet Components segment expected.
- Mid-single-digit sales growth in European Fenestration segment expected.
- Net sales of approximately $900 million to $920 million expected.
- Adjusted EBITDA between $108 million and $118 million expected.
Challenges Ahead
- Guidance assumes no adverse impact from the ongoing pandemic.
- Expectations are based on current market trends and customer conversations.
- Future performance is subject to various risk factors.
- Uncertainty remains in the global economic outlook due to COVID-19.
- Actual results may differ materially from expectations.