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Form 8-K Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 27, 2006

QUANEX CORPORATION
(Exact name of registrant as specified in its charter)


Delaware 		 
1-5725 		 
38-1872178
(State or other jurisdiction
of incorporation) 		  (Commission File Number)   (IRS Employer Identification No.)


 
1900 West Loop South, Suite 1500, Houston, Texas 		 
77027 		 
  (Address of principal executive offices)   (Zip Code)  

Registrant's telephone number, including area code:   713-961-4600



________________________________________________________________________________
(Former name or former address, if changed since last report)



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
  [   ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  [   ] Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12)
  [   ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  [   ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure

This information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On October 27, 2006, Quanex Corporation issued a press release (the "Press Release") providing earnings guidance for the fourth quarter of fiscal year 2006. The foregoing is qualified by reference to the Press Release which is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

    Exhibit 99.1.       Press release dated October 27, 2006

SIGNATURE

    Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

    QUANEX CORPORATION
(Registrant)
October 27, 2006
(Date) 		  /s/   THOMAS M. WALKER
Thomas M. Walker
Senior Vice President - Finance and Chief Financial Officer, (Principal Financial Officer)

  Exhibit Index
  99.1 Press release dated October 27, 2006






Quanex Corporation Quarterly Update

EXHIBIT 99.1

Quanex Corporation Quarterly Update

Annual EPS Estimated to be $4.00 -- $4.05 Per Diluted Share From Continuing Operations

HOUSTON, Oct. 27, 2006 (PRIMEZONE) -- Quanex Corporation (NYSE:NX), an industry-leading manufacturer of value-added engineered materials and components for the vehicular products and building products markets, announced today that it expects to report fiscal 2006 diluted earnings per share from continuing operations in a range of $4.00 to $4.05 when it reports results on December 6, 2006. The Company stated its guidance includes a provision for a non-cash LIFO charge of $0.17 -- $0.19 per share that results from a substantial rise in the price of aluminum ingot associated with its aluminum sheet business. The Company noted its previous LIFO estimate was $0.13 -- $0.16.

The Vehicular Products segment, whose primary driver is North American light vehicle builds, expects to report higher net sales and operating income in the fourth quarter 2006 compared to the fourth quarter 2005. Steel bar shipments in the quarter are expected to be higher than the year ago quarter and essentially in-line with third quarter 2006 shipments. North American light vehicle builds are estimated to be down 10% in the Company's fourth quarter compared to the year ago quarter.

The Building Products segment, whose primary drivers are U.S. housing starts and remodeling activity, expects to report higher net sales and lower operating income in the fourth quarter 2006 compared to the fourth quarter 2005. Demand for the segment's window and door components has slowed compared to both the fourth quarter 2005 and the third quarter 2006 in response to declining housing starts. Demand for the segment's aluminum sheet products is up compared to the fourth quarter 2005, but off from the third quarter 2006. Housing starts are estimated to be down 20% in the Company's fourth quarter compared to the year ago quarter.

Quanex noted it had entered into a new unsecured revolving credit facility on September 29, 2006. The $350 million facility has a term of five years with no outstanding loan balance. The credit facility will be used to finance the Company's growth and for other general corporate purposes.

Quanex is listed on the New York Stock Exchange under the symbol NX. For further information, visit the Company's website at www.quanex.com.

The Quanex Corporation logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1117

Statements that use the words "expect," "should," "may," "could," "will," "might," or similar words reflecting future expectations or beliefs are forward-looking statements. The statements above are based on Quanex's current expectations. Actual results or events may differ materially from this press 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 10-K filing of December 21, 2005, under the Securities Exchange Act of 1934, in particular, the sections titled "Private Securities Litigation Reform Act" contained therein. 

CONTACT:  Quanex Corporation
          Jeff Galow
            (713) 877-5327
          Valerie Calvert
            (713) 877-5305