Houston, Texas — NCI Building Systems, which makes polyisocyanurate-insulated steel building components, saw sales rise 3.4% to $ 372.2m in the second quarter of 2016 compared with the same period in 2015.
Gross profit rose 17.8% to $89.4 m in the period. Sales rose at the firm across all business segments. The buildings group, where the insulated panels are made saw operating income increase 151% to $ 7.2m in the 2016 second quarter compared with $ 2.9m in the second quarter of 2015. Costs in the segment fell because of lower material costs and "effective supply chain management," the company said.
NCI said that it expects 2016 to be a better year than 2015 in terms of gross margin and it expects second-half performance to be stronger than the first half. Ceo Norman Chambers said: "While the non-residential market continues an uneven and slow recovery NCI's customer sentiment is strengthening."
In the first half of the year sales were up 8% at $ 742m in the first half of 2016 compared with $ 683m in the first half of 2015. Gross profit grew by 24% from $148m in the first half of 2015 to $ 179m in the 2016 period.