Quanex Announces Quarterly Update - Second Quarter Fiscal 2001

Despite Industry Downturn, Company Expects to Outperform Previous Quarter



Apr 19, 2001, 01:00 ET from Quanex Corporation

    HOUSTON, April 19 /PRNewswire/ -- Quanex Corporation (NYSE:   NX) announced
 today that it continues to experience weakness in its primary automotive and
 building products markets which will produce lower earnings during the second
 quarter 2001 versus last year.  For the quarter, fully diluted earnings per
 share are expected to be about half of the $.61 reported for the same period
 in fiscal 2000.  At this time, earnings per share for fiscal 2001 are expected
 to be between $1.75 and $2.00 fully diluted versus the $2.44 reported for
 fiscal 2000.
     The Company's markets have experienced a more severe and protracted
 slowdown than initially expected at the start of the fiscal year, but the
 recent acquisitions of Imperial Products and Temroc Metals, along with
 improved results at Piper Impact versus last year, continue to aid results.
 Historically, Quanex experiences stronger results during the second half of
 its fiscal year.  Management expects to report improved operating earnings
 with each quarter of 2001 compared to previous 2001 quarters.
     MACSTEEL(R), the Company's engineered steel bar segment, has continued to
 experience weakness in both of its largest markets:  light vehicles and heavy-
 duty trucks.  Operating income for the quarter will exceed first quarter 2001
 results, but will be significantly below second quarter 2000 operating income
 of $15.9 million.  The good news, however, is that MACSTEEL is returning to
 five days per week operations by month end.  It is expected to show better
 operating results with each quarter of 2001.
     Nichols Aluminum, the Company's aluminum sheet products segment, continues
 to experience reduced activity due to the general slowdown in the economy and
 inventory reductions in the building and construction markets.  Operating
 income for the quarter will exceed first quarter 2001 results, but will be
 well below second quarter 2000 operating income of $6.6 million.  However,
 with the arrival of the spring building season, Nichols anticipates increased
 shipments going forward and expects to report better operating results with
 each quarter of 2001.
     Engineered Products, the Company's metal fabricating segment, is
 experiencing a modest slowdown in its fenestration and residential building
 markets.  However, with the acquisitions of Imperial Products and Temroc
 Metals last year, the segment's first quarter 2001 results were up from last
 year's quarter.  Second quarter 2001 results are also expected to exceed the
 same quarter's performance last year.  For 2001, the segment is expected to
 show improved results versus 2000.
     Piper Impact, the Company's impact extrusion business, expects to report
 positive operating income for the quarter versus an operating loss of
 $3.8 million a year ago.  Improvements in operating results from last year are
 due, in part, to higher volume, increased productivity, and the disposition of
 Piper Impact - Europe.
     Note:  It is the Company's intention to make this quarterly release a
 routine event, once per quarter, approximately 30 days before Quanex releases
 its regular quarterly earnings report.
     Statements that use the words "expect," "should," "will," "might," or
 similar words reflecting future expectations or beliefs are forward-looking
 statements.  The above statements are based on current expectations.  Actual
 results or events may differ materially from this release.  Factors that could
 impact future results may include, without limitation, the effect of both
 domestic and global economic conditions, the impact of competitive products
 and pricing, and the availability and cost of raw materials.  For a more
 complete discussion of factors that may affect the Company's future
 performance, please refer to the Company's most recent filing (fiscal 2000
 10-K filed January 5, 2001) under the Securities Exchange Act of 1934, in
 particular the sections titled, "Private Securities Litigation Reform Act"
 contained therein.
 
 

SOURCE Quanex Corporation
    HOUSTON, April 19 /PRNewswire/ -- Quanex Corporation (NYSE:   NX) announced
 today that it continues to experience weakness in its primary automotive and
 building products markets which will produce lower earnings during the second
 quarter 2001 versus last year.  For the quarter, fully diluted earnings per
 share are expected to be about half of the $.61 reported for the same period
 in fiscal 2000.  At this time, earnings per share for fiscal 2001 are expected
 to be between $1.75 and $2.00 fully diluted versus the $2.44 reported for
 fiscal 2000.
     The Company's markets have experienced a more severe and protracted
 slowdown than initially expected at the start of the fiscal year, but the
 recent acquisitions of Imperial Products and Temroc Metals, along with
 improved results at Piper Impact versus last year, continue to aid results.
 Historically, Quanex experiences stronger results during the second half of
 its fiscal year.  Management expects to report improved operating earnings
 with each quarter of 2001 compared to previous 2001 quarters.
     MACSTEEL(R), the Company's engineered steel bar segment, has continued to
 experience weakness in both of its largest markets:  light vehicles and heavy-
 duty trucks.  Operating income for the quarter will exceed first quarter 2001
 results, but will be significantly below second quarter 2000 operating income
 of $15.9 million.  The good news, however, is that MACSTEEL is returning to
 five days per week operations by month end.  It is expected to show better
 operating results with each quarter of 2001.
     Nichols Aluminum, the Company's aluminum sheet products segment, continues
 to experience reduced activity due to the general slowdown in the economy and
 inventory reductions in the building and construction markets.  Operating
 income for the quarter will exceed first quarter 2001 results, but will be
 well below second quarter 2000 operating income of $6.6 million.  However,
 with the arrival of the spring building season, Nichols anticipates increased
 shipments going forward and expects to report better operating results with
 each quarter of 2001.
     Engineered Products, the Company's metal fabricating segment, is
 experiencing a modest slowdown in its fenestration and residential building
 markets.  However, with the acquisitions of Imperial Products and Temroc
 Metals last year, the segment's first quarter 2001 results were up from last
 year's quarter.  Second quarter 2001 results are also expected to exceed the
 same quarter's performance last year.  For 2001, the segment is expected to
 show improved results versus 2000.
     Piper Impact, the Company's impact extrusion business, expects to report
 positive operating income for the quarter versus an operating loss of
 $3.8 million a year ago.  Improvements in operating results from last year are
 due, in part, to higher volume, increased productivity, and the disposition of
 Piper Impact - Europe.
     Note:  It is the Company's intention to make this quarterly release a
 routine event, once per quarter, approximately 30 days before Quanex releases
 its regular quarterly earnings report.
     Statements that use the words "expect," "should," "will," "might," or
 similar words reflecting future expectations or beliefs are forward-looking
 statements.  The above statements are based on current expectations.  Actual
 results or events may differ materially from this release.  Factors that could
 impact future results may include, without limitation, the effect of both
 domestic and global economic conditions, the impact of competitive products
 and pricing, and the availability and cost of raw materials.  For a more
 complete discussion of factors that may affect the Company's future
 performance, please refer to the Company's most recent filing (fiscal 2000
 10-K filed January 5, 2001) under the Securities Exchange Act of 1934, in
 particular the sections titled, "Private Securities Litigation Reform Act"
 contained therein.
 
 SOURCE  Quanex Corporation