Apogee Enterprises, Inc., which develops and delivers value-added glass products and services for the architectural, large-scale optical and automotive industries, announced earnings for the 3Q fiscal…
Apogee Enterprises, Inc., which develops and delivers value-added glass products and services for the architectural, large-scale optical and automotive industries, announced earnings for the 3Q fiscal 2005 on15 December 2004. Earnings from continuing operations were USD 0.20 per share, versus USD 0.20 per share a year earlier. (All earnings per share figures refer to diluted earnings per share.) The prior-year earnings per share included a significant tax benefit; without this benefit, earnings per share would have been USD 0.12 in the 3Q of fiscal 2004. Operating income from continuing operations increased 32% year-on-year. Operating margin increased to 5.4%, from 4.5% in the fiscal 2004 3Q, due primarily to improved efficiencies on increased volume within the architectural segment, Apogee said. Revenues of USD 157.1 million were up 9% year-on-year. Net earnings, including discontinued operations, were USD 0.20 per share, an improvement from USD 0.09 per share in the year-ago period, which was adversely affected by the performance and sale of the Harmon AutoGlass business. Architectural segment revenues were up 20%, and operating income grew to USD 5.3 million from USD 1.7 million in the year-ago period. Increased volume led to higher capacity utilization and improved margins. Segment backlog grew slightly year-on-year, and was down slightly from the 2Q level as new orders that went into backlog nearly offset strong revenues. Revenues from the large-scale optical segment declined 15% as expected, while operating income increased 32% year-on-year. Sales of higher-margin, value-added picture framing glazing products continue to be strong, the company said. Auto glass segment revenues and earnings dropped significantly, as expected. Results were adversely affected by soft market conditions and termination of certain supply pricing amendments in fiscal 2004. On 10 December 2004, following the end of the 3Q fiscal 2005, Apogee completed the asset purchase of Architectural Wall Solutions, Inc. (AWallS) of Bolingbrook, Illinois, a commercial glass installation business. Apogee said the acquisition is part of its strategy to strengthen and grow its architectural businesses. (The impact of AWallS is not included in 3Q results.) “We are pleased that 3Q results met our internal expectations,” said Russell Huffer, Apogee chairman and chief executive officer. “Our architectural segment again turned in a solid performance in a more stable commercial construction market. The large-scale optical segment continues to benefit from its success in converting the picture framing market to value-added glass.” “During the quarter, we made significant progress on our initiatives to increase architectural market share and to improve performance in this segment,” said Huffer. “We broke ground on our architectural glass capacity expansion to serve growth in our core, higher-end markets, where we are also gaining share through our initiatives. The project is on schedule for a fiscal 2006 2Q startup. We are investing approximately USD 12 million to expand our architectural glass fabrication capacity by approximately USD 20 million in annual revenues.” “The acquisition of commercial glass installer AWallS, announced during the 3Q and completed 10 December will strengthen the organization of our installation business, as well as help us increase market penetration in the Midwest and Northwest,” he said. “We currently anticipate that the acquisition will add approximately USD 25 million in annual revenues.”