The US glass technologies and auto glass company Apogee Enterprises has announced its results for the first quarter of the new fiscal year. Profits improved in all three of its business segments: glas…
The US glass technologies and auto glass company Apogee Enterprises has announced its results for the first quarter of the new fiscal year. Profits improved in all three of its business segments: glass technologies; auto glass; and building products and services. For the first quarter, net earnings rose 43% to US$ 5.0 million from US$ 3.5 million a year earlier. Earnings per share were US$ 0.36, up 38% from US$ 0.26 per share in the same period of fiscal 1996. Consolidated sales increased 4% to US$ 228.6 million from US$ 219.0 million. The company noted that fiscal 1997“s first quarter had the customary 13 weeks, whereas last year“s first quarter had 14 weeks. Adjusting for the extra week, sales increased approximately 12% from a year ago. In addition, year-to-year sales comparisons were influenced by the absence of the Nanik Window Coverings Group, which was sold last July, and the consolidation of Viratec Thin Films and Marcon Coatings, beginning this quarter. “Apogee“s record first quarter earnings reflects increased profitability in all three business segments,” said Donald W. Goldfus, chairman, chief executive officer and president. “Glass technologies and auto glass each generated double-digit profit growth, and building products and services reported a modest operating profit.” The glass technologies segment registered a 15% increase in operating income on a 14% rise in sales during the quarter, according to Goldfus. The Viracon architectural glass unit experienced some shipment delays during the quarter and Viratec Thin Films reported a slim operating profit, as pricing pressures continue in its core, flat glass business. Viracon plans to increase capacity by approximately 25% this year, capitalising on its growth in both domestic and international markets and penetration of the mid-performance architectural glass market. Viracon already holds the leading position in the US for the high-performance segment of this market. According to Goldfus, Viracon“s high-performance product carries roughly the same pricing as the mid-performance glass more commonly sold into this market segment. In February 1996, a District Court in Minnesota, US, awarded Apogee the right to purchase the 50% interest in the Viratec and Marcon joint ventures from former partner Marvin Windows, as reported in Glass-Technology International No. 3-96. Goldfus noted the court is now considering the price Apogee will pay to Marvin for the remaining equity in these businesses, and a decision is expected during this fiscal year. Both business units“ results are included in Apogee“s consolidated financial statements beginning this quarter. The Auto Glass segment recorded an 11% rise in operating income on an 8% sales increase. Apogee has also announced that it has promoted James Martineau, 56, to the newly created position of executive vice president. In his new role, Martineau will direct a variety of corporate activities as well as oversee Apogee“s Automotive Glass segment, which includes the Installation and Distribution Division and Curvlite. Martineau also serves as a company director. The US company also named Russell Huffer, 47, to succeed Martineau as president of Apogee“s Glass Technologies segment, which generated 17% of sales and 48% of operating income in fiscal 1996. Huffer previously served as executive vice president and chief operating officer at Viracon.