US company Apogee Enterprises, Inc. has reported record second quarter earnings of US$ 8.0 million or US$ 0.57 per share. This earnings performance was the best of any quarter in Apogee“s history. Co…
US company Apogee Enterprises, Inc. has reported record second quarter earnings of US$ 8.0 million or US$ 0.57 per share. This earnings performance was the best of any quarter in Apogee“s history. Consolidated sales increased 14% to US$ 253.2 million from US$ 222.2 million for the same period in 1995. The glass technologies segment posted a 12% gain in operating income on a 42% increase in sales for the three month period. The sales increase was driven by record bookings at American Viracon and the inclusion of sales at Viratec, also of the US. Viracon is enjoying extremely strong demand for its products. Viratec continues to endure disappointing results due to pricing pressures in its flat glass business and weak demand for its direct coating business. According to Donald W. Goldfus, chairman and president of Apogee, Viracon has increased capacity by 25% this year and is currently booking production into next spring. Viracon is moving forward on its production capacity expansion plans to meet the additional demand for high-performance architectural glass. Goldfus also noted that the Viratec Thin Films and Marcon Coatings purchase price has yet to be determined by the Rice County (Minnesota) District Court (see Glass-Technology International, No. 3-96). The court decision is anticipated during this fiscal year. Both business units“ financial results are included in Apogee“s consolidated financial statements this fiscal year. The building products and services segment reported operating income for the third consecutive quarter, versus a loss in the same period last year. Net sales increased 5% for the quarter. The focus on margins instituted during fiscal 1995 continued to generate improved margin performance in this segment. The auto glass segment recorded an 8% gain in operating income on a 13% rise in sales for the quarter. The operating income gain occurred despite a charge that was taken due to obsolescent inventories. The segment continues to benefit from a modest industry-wide price increase last spring. Apogee has also announced that it may exceed US$ 1.75 earnings a share in its 1997 fiscal year ending in February, compared to the US$ 1.31 a share it earned in fiscal 1996. The company cited its glass technologies segment as being its largest contributor to earnings. “Glass technologies will make the biggest contribution to operating income in fiscal year 1997,” chief financial officer Terry Hall said. Last year, that segment had US$ 16.4 million in operating income, which trailed the US$ 18.1 million posted by Apogee“s automotive glass segment. The company“s third business line, building products and services, lost US$ 2.1 million in fiscal 1996, the company said. “It“s not going to be difficult for the glass technologies segment to achieve 20% or better in earnings growth in fiscal year “97,” Hall said. Apogee said the automotive glass segment had been budgeted for little or no growth in earnings in 1997, but held out the possibility of earnings growth for that segment. “So far, we“re seeing fairly good conditions in the automotive glass segment“s market,” he said. “We started the year much stronger than we anticipated. If demand holds up, then we“re going to have a good year.” Hall also said the building products and services segment will post a profit in fiscal 1997.