Quanex Building Products (NX) 8-K Quanex Building Products Corporation Reports Fiscal Second Quarter 2008 Results

Exhibit 99.1

Quanex Building Products News Release

Quanex Building Products Corporation Reports
Fiscal Second Quarter 2008 Results

Reported $0.17 EPS from Continuing Operations before Special Items
Company Continued to Outperform the Market
Expected Start-Up Cash of $52 million From the Spin / Merger Transactions
Company Essentially Debt Free, with Financial Wherewithal to Fund both Organic and
Acquisitive Growth

Houston, Texas, June 9, 2008 —Quanex Building Products Corporation (NYSE:NX)today reported fiscal second quarter 2008 results for the period ending April 30. Diluted earnings from continuing operations were $0.17 per share excluding special items. Including special items of $0.37 per share, diluted earnings from continuing operations were $(0.20) per share.

Income from continuing operations excluding special items was $6.5 million. Special items totaled $13.8 million after-tax, the result of transaction related costs. Income from continuing operations in the year ago quarter was $13.4 million, or $0.34 per diluted share.

Diluted earnings per share were $(0.14) in the quarter versus $0.86 in the second quarter 2007. Net sales for the second quarter 2008 were $207.3 million compared to $238.6 million a year ago.

Fiscal Second Quarter 2008 Highlights

• Quanex Building Products Corporation was spun-off from Quanex Corporation on April 23^rd.

• Net sales were $207.3 million compared to $174.9 million and $238.6 million in the sequential and year ago quarters, respectively.

• SG&A was $43.6 million, and included $25.7 million of corporate transaction related costs, of which $22.8 million were non-cash, stock-based compensation expenses paid by the acquirer of Quanex Corporation.

• Cash provided by operating activities from continuing operations was $19.5 million, down from $31.9 million a year ago.

• Capital expenditures were $6.9 million in the quarter versus $7.3 million a year ago.

• Cash and equivalents totaled $40 million at quarter end.

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Selected Financial Information

Fiscal Second Quarter 2008 Financials
($ in millions, except per share data)

	2nd qtr 2008			2nd qtr 2007		inc/(dcr)
Net sales:	$	207.3		$	238.6		(13	%)
Operating income before special items:		9.5			21.3		(55	%)
Income from continuing operations before special items:		6.5			13.4		(51	%)
Diluted earnings per common share from continuing operations before special items:	$	0.17		$	0.34		(50	%)
Diluted earnings per common share from continuing operations	$	(0.20	)	$	0.34		—

Fiscal Second Quarter 2008 Commentary

Engineered Products ($ in millions)

	2nd qtr 2008		2nd qtr 2007		inc/(dcr)
Net Sales	$	92.5	$	103.6		(11	%)
Operating Income	$	5.3	$	9.1		(42	%)

Engineered Products is focused on providing window and door customers with value added fenestration products and components. Key market drivers are housing starts and remodeling activity.

“The housing market slowdown continues, with new housing starts off 34% compared to our second quarter last year. Sales held up relatively well, off about 11%, based in part on the strength of our leading customers and new programs, and lower, but more resilient home repair and remodeling expenditures. The combination of a huge inventory overhang of both new and existing home stock, the rise of home foreclosures and a tight credit market is keeping the residential housing market in a depressed state. The U.S. Department of Housing currently estimates a 10 month supply of homes available for sale. The remodeling industry is experiencing a slowdown in activity as well, down some 5% to 10% from a year ago.

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Engineered Products did see some seasonal improvement in demand over the first quarter, with April booking activity particularly noteworthy, and we look for higher overall sales at the segment in the third quarter. We continue to reduce expense levels in keeping with market realities, and are currently combining two separate facilities at our window and door fenestration components business into a single, more efficient operation. We expect to have this initiative completed by fiscal year end,” said Raymond A. Jean, President and Chief Executive Officer.

Aluminum Sheet Products ($ in millions)

	2nd qtr 2008		2nd qtr 2007		inc/(dcr)
Net Sales	$	118.3	$	139.2		(15	%)
Operating Income	$	10.0	$	16.8		(41	%)

Aluminum Sheet Products is a leading provider of common alloy aluminum sheet products for the building and construction, transportation and other consumer durable markets. Key market drivers are housing starts and remodeling activity and together they represent about 65% of the division’s sales.

“Our second quarter shipped pounds at Nichols Aluminum were down about 12% from year ago levels, but up some 23% compared to first quarter shipments due to the seasonal increase in the building products markets. Sales price per pound was off about 4% from the year ago period while our spread per pound (selling price less material costs) in the quarter was off about 7% due primarily to a lower mix of value-added painted sheet sales and a lower London Metal Exchange aluminum ingot price compared to a year ago. However, these prices increased during our second quarter and will benefit us going forward. Operating income was negatively impacted by a combination of the drop in shipped pounds, lower painted sheet sales and the weaker spread. During the quarter, we idled the rolling capacity at our Alabama finishing facility and moved that production to our Lincolnshire facility, thereby improving operating rates at the other plants,” Jean said.

Cash Flow
“Cash and equivalents at quarter end was $40 million, including some $28 million of the expected $52 million start-up cash, and total debt to capitalization remained minimal at 0.5%. Operating cash flow from continuing operations came in at a very healthy $19.5 million. We continue to closely monitor our working capital, and at quarter end, our conversion cycle was about 31 days. With our healthy cash balance, strong cash flow and $270 million revolving credit facility, we have the financial wherewithal to fund attractive growth opportunities, both organic and acquisition related,” said Jean.

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Fiscal 2008 Outlook
The Company does not expect any near term improvement in the housing market, with industry prognosticators continuing to push out the timing of the expected trough, now estimated to occur in the fourth calendar quarter of 2008. Housing starts in fiscal 2008 are now expected to lag fiscal 2007 starts by 35% as the market struggles with the high inventory overhang and tougher credit requirements sought by mortgage lenders. However, the Company does expect to see higher demand from its Engineered Products customers in the second half of the fiscal year compared to the first half due to seasonal improvements in the market and the growth of new programs.

At Nichols Aluminum, volumes are expected to lag year ago quarters throughout the remainder of fiscal 2008. Spread per pound at Nichols, however, is expected to be more robust in the second half of the year compared to the first half in keeping with higher anticipated aluminum ingot prices.

The greater than expected intensity and duration of the housing storm makes forecasting particularly difficult. The current roll-up of income expectations by business still indicates the Company will generate around $80 million of operating income before taking into account approximately $20 million of corporate expenses in a normalized run rate. But given the economy’s fragile state, the uncertainty attending this forecast is high and the risks remain to the downside. However, the Company does expect to continue to outperform the market and generate significant cash flow, and is well positioned to experience significant operating leverage when the market improves.

Dividend Declared
The Board of Directors previously declared a quarterly cash dividend of $0.03 per share on the Company’s common stock, payable June 30, 2008, to shareholders of record on June 16, 2008.

Corporate Profile
Quanex Building Products Corporation is an industry-leading manufacturer of value-added, engineered materials and components serving the building products markets. It is an ROIC driven company that grows shareholder returns through a combination of organic growth via new products and programs, and strategic acquisitions.

Financial Statistics as of 04/30/08
Book value per common share: $13.97; Total debt to capitalization: 0.5%; Actual number of common shares outstanding: 37,608,153

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Non-GAAP Financial Measures
Operating Income and Income from Continuing Operations Excluding Special Items

Operating income and income from continuing operations excluding special items are non-GAAP financial measures. The Company believes these non-GAAP financial measures provide a consistent basis for comparison between quarters and enhance the understanding of the performance of its ongoing operations, as they are not influenced by certain costs incurred during the quarter and are believed to be special and related to specific, infrequent items.

Set forth below is a reconciliation of reported operating income, reported income from continuing operations and reported diluted earnings per share from continuing operations to operating income excluding special items, income from continuing operations excluding special items and diluted earnings per share from continuing operations excluding special items, respectively. The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP.

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	Three months ended April 30,
	2008			2007
(in millions except diluted EPS)	Income			Income
Operating income, as reported	$	(16.2	)	$	21.3
Reconciling items associated with the Company’s spin-off:
Stock based compensation expense		22.8			—
Transaction costs associated		1.9			—
Executive incentives & other benefits		1.0			—
Selling, general & administrative expense unusual items		25.7			—
Operating income, excluding unusual items	$	9.5		$	21.3

	Three months ended April 30,
	2008						2007
				Diluted					Diluted
(in millions except diluted EPS)	Income			EPS			Income		EPS
Income (loss) from continuing operations, as reported	$	(7.3	)	$	(0.20	)	$	13.4	$	0.34
After-tax reconciling items associated with the Company’s spin-off:
Stock based compensation expense		13.7			0.37			—		—
Transaction costs		1.9			0.05			—		—
Executive incentives & other benefits		0.6			0.01			—		—
Selling, general & administrative expense		16.2			0.43			—		—
Rabbi trust merger consideration		(2.4	)		(0.06	)		—		—
Total after-tax unusual items		13.8			0.37			—		—
Income from continuing operations, excluding special items	$	6.5		$	0.17		$	13.4	$	0.34
Diluted weighted average common shares outstanding (in thousands)					37,265					39,416

Definitions
Book value per common share— calculated as total stockholders’ equity as of balance sheet date divided by actual number of common shares outstanding;
Total debt to capitalization— calculated as the sum of both the current and long term portion of debt, as of balance sheet date, divided by the sum of both the current and long term portion of debt plus total stockholders’ equity as of balance sheet date.

Statements that use the words “expect,” “should,” “believe,” “will,” “might,” or similar words reflecting future expectations or beliefs are forward-looking statements. The statements found above 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 Registration Statement on Form 10, filed with the SEC on April 4, 2008 pursuant to the Securities Exchange Act of 1934, in particular the section titled, “Special Note About Forward-Looking Statements” contained therein.

Financial Contact: Jeff Galow, 713/877-5327
Media Contact: Valerie Calvert, 713/877-5305

For additional information, visit the Company’s website atwww.quanex.com.

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QUANEX BUILDING PRODUCTS CORPORATION
INDUSTRY SEGMENT INFORMATION
(In thousands)
(Unaudited)

Three months ended							Six months ended
April 30,							April 30,
2008			2007				2008			2007
						Net sales:
$	92,494		$	103,583		Engineered Products	$	179,770		$	202,452
	118,281			139,188		Aluminum Sheet Products		210,348			244,425
	210,775			242,771		Building Products		390,118			446,877
	(3,437	)		(4,220	)	Eliminations		(7,868	)		(7,935	)
$	207,338		$	238,551		Net sales	$	382,250		$	438,942
						Operating income:
$	5,296		$	9,087		Engineered Products	$	7,190		$	12,938
	9,982			16,828		Aluminum Sheet Products		15,585			27,416
	15,278			25,915		Building Products		22,775			40,354
	(31,500	)		(4,620	)	Corporate and Other *		(40,164	)		(11,855	)
$	(16,222	)	$	21,295		Operating Income (Loss) *	$	(17,389	)	$	28,499

* Corporate and Other and Operating Loss for the three months and six months ended April 30, 2008 include $25.7 million and $26.4 million, respectively, of special items associated with the spin-off / merger transaction.

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QUANEX BUILDING PRODUCTS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)

Three months ended							Six months ended
April 30,							April 30,
2008			2007				2008			2007
$	207,338		$	238,551		Net sales	$	382,250		$	438,942
	170,776			191,000		Cost of sales (exclusive of items shown separately below)		317,853			355,147
	43,637			17,196		Selling, general and administrative expense		63,680			36,399
	9,147			9,060		Depreciation and amortization		18,106			18,897
	(16,222	)		21,295		Operating income (loss)		(17,389	)		28,499
	(100	)		(150	)	Interest expense		(238	)		(312	)
	4,242			81		Other, net		4,550			160
	(12,080	)		21,226		Income (loss) before income taxes		(13,077	)		28,347
	4,765			(7,849	)	Income tax expense		5,153			(10,481	)
	(7,315	)		13,377		Income (loss) from continuing operations		(7,924	)		17,866
	1,982			19,866		Income (loss) from discontinued operations, net of taxes		5,675			36,031
$	(5,333	)	$	33,243		Net income (loss)	$	(2,249	)	$	53,897
						Basic earnings per common share:
$	(0.20	)	$	0.36		Earnings (loss) from continuing operations	$	(0.21	)	$	0.48
$	0.06		$	0.54		Income (loss) from discontinued operations	$	0.15		$	0.98
$	(0.14	)	$	0.90		Basic earnings (loss) per common share	$	(0.06	)	$	1.46
						Diluted earnings per common share:
$	(0.20	)	$	0.34		Earnings (loss) from continuing operations	$	(0.21	)	$	0.46
$	0.06		$	0.52		Income (loss) from discontinued operations	$	0.15		$	0.94
$	(0.14	)	$	0.86		Diluted earnings (loss) per share	$	(0.06	)	$	1.40
						Weighted average common shares outstanding:
	37,265			36,943		Basic		37,215			36,920
	37,265			39,416		Diluted		37,215			39,113

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QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

April 30,			October 31,
2008			2007
		Assets
$	40,450	Cash and equivalents	$	1,778
	85,834	Accounts and notes receivable, net		80,095
	56,647	Inventories, net		53,556
	1,901	Deferred income taxes		5,370
	10,349	Other current assets		4,372
	—	Current assets of discontinued operations		431,326
	195,181	Total current assets 576,497
	165,786	Property, plant and equipment, net		173,590
	12,584	Deferred income taxes		—
	196,372	Goodwill		196,385
	64,838	Intangible assets, net		68,199
	9,499	Other assets		9,225
	—	Assets of discontinued operations		310,926
$	644,260	Total assets	$	1,334,822
		Liabilities and stockholders’ equity
$	68,614	Accounts payable	$	68,167
	32,155	Accrued liabilities		37,102
	363	Current maturities of long-term debt		1,464
	—	Current liabilities of discontinued operations		242,570
	101,132	Total current liabilities		349,303
	2,388	Long-term debt		2,551
	—	Deferred income taxes		34,457
	3,458	Non-current environmental reserves		4,239
	11,891	Other liabilities		13,889
	—	Liabilities of discontinued operations		47,234
	118,869	Total liabilities		451,673
	525,391	Total stockholders’ equity		883,149
$	644,260	Total liabilities and stockholders’ equity	$	1,334,822

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QUANEX BUILDING PRODUCTS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)

	Six months ended
	April 30,
	2008			2007
Operating activities:
Net income	$	(2,249	)	$	53,897
Income from discontinued operations		(5,675	)		(36,031	)
Net income from continuing operations		(7,924	)		17,866
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization		18,111			18,901
Deferred income taxes		2,999			(782	)
Stock-based compensation		24,936			3,006
		38,122			38,991
Changes in assets and liabilities, net of effects from acquisitions, dispositions and the Separation:
Decrease (Increase) in accounts and notes receivable		(5,896	)		(12,080	)
Decrease (Increase) in inventory		(3,127	)		(8,080	)
Decrease (Increase) in other current assets		(4,872	)		633
Increase (Decrease) in accounts payable		954			16,184
Increase (Decrease) in accrued liabilities		(2,294	)		(8,510	)
Increase (Decrease) in income taxes payable		(646	)		(3	)
Other, net		(2,773	)		4,742
Cash provided by (used for) operating activities from continuing operations		19,468			31,877
Cash provided by (used for) operating activities from discontinued operations		25,127			52,507
Cash provided by (used for) operating activities		44,595			84,384
Investment activities:
Capital expenditures, net of retirements		(6,941	)		(7,292	)
Cash provided by (used for) investing activities from continuing operations		(6,941	)		(7,292	)
Cash provided by (used for) investing activities from discontinued operations		34,113			(107,515	)
Cash provided by (used for) investment activities		27,172			(114,807	)
Financing activities:
Repayments of long-term debt		(1,264	)		(2,521	)
Funding from Separation		27,755			—
Transfers to Quanex Corporation					(22,638	)
Other, net		(290	)		—
Cash provided by (used for) financing activities from continuing operations		26,201			(25,159	)
Cash provided by (used for) financing activities from discontinued operations		(46,183	)		13,824
Cash provided by (used for) financing activities		(19,982	)		(11,335	)
Effect of exchange rate changes on cash and equivalents		(56	)		11
LESS: (Increase) Decrease in cash and equivalents from discontinued operations		(13,057	)		41,184
Increase (Decrease) in cash and equivalents from continuing operations		38,672			(563	)
Beginning of period cash and equivalents		1,778			2,247
End of period cash and equivalents	$	40,450		$	1,684

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