Wednesday, NCI Building Systems, Inc. (NCS) reported a decline in profit for the third quarter, reflecting a 50% decline in sales from all the segments due to decline in non-residential construction activity in commercial and industrial sectors, as well as charges. Adjusted earnings for the quarter, however, came in well ahead of analysts' consensus.
NCI Building Systems' net income for the third quarter declined to $3.97 million or $0.20 per share from $31.89 million or $1.63 per share in the previous year. Results for the quarter include $1.2 million restructuring charge related to severance and plant closings.
On an adjusted basis, net income declined to $4.81 million or $0.25 per share from $31.89 million or $1.63 per share in the previous year.
On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.11 per share for the third quarter. Analysts' estimates typically exclude special items.
Total sales for the quarter declined 50.1% to $238.44 million from $477.60 million a year ago.
By segment, revenue from Metal coil coating declined 51.2% to $44.26 million from the previous year. Revenue from Metal components was $113.21 million, down 44.2% from last year. Revenue from Engineered building systems were down 55.5% to $130.40 million, compared to last year.
Gross profit declined to $61.08 million or 25.6% of sales from $128.57 million or 26.9% of sales last year.
Year-to-date, the company reported a net loss of $644.85 million or $33.12 per share, compared to an income of $54.27 million or $2.79 per share in the same period of the previous year. Total sales for the period declined 42.4% to $0.72 billion from $1.25 billion last year.
Looking forward, the company noted that it is facing continued weakness in nonresidential construction activity, and industry forecast do not indicate any meaningful improvement this year or next. "Within this challenging environment, we remain cautious, working to align our resources with demand levels while addressing new market opportunities and broadening our geographic reach," said Norman Chambers, chairman, president and chief executive officer.
NCS closed Wednesday's regular trading at $2.95, up 0.21 or 7.66%, on a volume of 1.84 million shares on the NYSE. In after hours, the stock further gained 0.60 or 20.34%, trading at $3.55.
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