NCI Building Systems (NCS) Tops Q4 EPS by 3c; Issues Outlook

December 10, 2013 3:14 PM
(Updated - December 10, 2013 3:18 PM EST)

NCI Building Systems (NYSE: NCS) reported Q4 adjusted EPS of $0.10, $0.03 better than the analyst estimate of $0.07. Revenue for the quarter came in at $400.2 million versus the consensus estimate of $362.83 million.

Outlook:

Our performance in fiscal 2013 was hampered by economic uncertainty, which resulted in lower than expected volumes and pricing pressure earlier in our fiscal year,” noted Mr. Chambers. “Beginning in August, we experienced a pick-up in demand mainly coming from the commercial, industrial and agricultural sectors. The recent additions to our Buildings backlog in the period continue to reflect a number of larger projects and projects with higher margins. Operationally, the Components group delivered significant growth in commercial and industrial sector sales to NCI’s largest OEM customers and in insulated metal panels. The Coatings group continues to benefit from higher volumes and improving product mix and margins. In addition, the Middletown, Ohio light gauge paint line has substantially increased production, and the facility, as previously anticipated, was profitable in the fourth fiscal quarter of 2013, commented CEO Norman Chambers.

We expect the market will support 800 million square feet of nonresidential construction starts in calendar 2013, a very modest improvement from the 772 million square feet realized in 2012. Business conditions at architectural firms have steadily improved in the past several quarters, suggesting the potential for upper single digit year-over-year growth in nonresidential new construction in 2014. Recent bookings trends and discussions with our customers appear to support this momentum. In addition, we currently anticipate improved margins in fiscal 2014 as we fully benefit from greater commercial discipline, manufacturing efficiencies and volume-driven operating leverage, Chambers concluded.

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