NCI Building Systems Faces Tough Times in Rough Sector

Source: Thinkstock

NCI Building Systems Inc. (NYSE:NCS) is not exactly a household name, but it caught my attention after posting a wider-than-expected loss in its last quarter. The company is in a rough sector right now, as it manufactures and markets metal products for the nonresidential construction industry in North America, which has been under pressure since the Great Recession.

The company has several segments you should be aware of. The company’s Metal Coil Coating segment is engaged in cleaning, treating, and painting various flat rolled metal coil materials in coil form, as well as in slitting and/or embossing the metal before the metal is fabricated for use by various industrial users. It also cleans, treats, and coats hot-rolled and light gauge metal coils for third parties for various applications, such as construction products, heating and air conditioning systems, water heaters, lighting fixtures, ceiling grids, office furniture, appliances, and other products. This segment serves the manufacturers of metal components and engineered building systems, as well as steel mills, metal service centers, and painted coil distributors.

The company’s Metal Components segment manufactures metal components, including metal roof and wall systems, metal partitions, metal trims, doors, and other related accessories for new construction and in repair and retrofit applications for industrial, commercial, institutional, agricultural, and rural uses. It also sells interior and exterior walk doors for use in the self-storage industry, and metal and other buildings. This segment sells metal components directly to regional manufacturers, contractors, subcontractors, distributors, lumberyards, co-operative buying groups, and other customers.