NCI Building Systems Profit Rises - Update

(RTTNews) - NCI Building Systems Inc. (NCS) Tuesday reported a better-than-expected increase in fourth-quarter profit, due mainly to a double-digit revenue growth and lower interest expense.

Moving forward, the company sees better demand from the commercial, industrial and agricultural sectors, with margins picking up.

The Houston, Texas-based company posted quarterly net income of $8.3 million or $0.11 per share, compared with $6.3 million or $0.08 per share last year.

Excluding items, adjusted earnings for the quarter were $8 million or $0.10 per share. On average, seven analysts polled by Thomson Reuters expected earnings of $0.07 per share for the quarter. Analysts' estimates typically exclude special items.

NCI makes metal products primarily for the nonresidential construction industry. Its sales for the fourth quarter climbed 10.7 percent to $400 million from $361.7 million a year ago, topping analysts' expectations of $362.8 million.

Among segments, Coatings group sales climbed 31.8 percent, due mainly on demand for lighting fixtures and appliance sales. Components group third-party sales climbed 13.8 percent.

Buildings group sales were up 5.5 percent, but were offset by lower margins.

Results were also helped by interest expense that decreased by $3 million during the quarter.

At the end of the quarter, NCI's backlog rose 6 percent year-over-year to $322 million.

NCI closed Tuesday at $16.75, up $0.34 or 2.07%, on a volume of 362 thousand shares on the NYSE.