Apogee Enterprises raises fiscal 2007 earnings guidance

Apogee Enterprises, Inc. is increasing its fiscal year 2007 earnings guidance to a range of USD 0.92 to USD 0.98 per share from previous guidance of USD 0.88 to USD 0.94 per share, driven primarily by…

Apogee Enterprises, Inc. is increasing its fiscal year 2007 earnings guidance to a range of USD 0.92 to USD 0.98 per share from previous guidance of USD 0.88 to USD 0.94 per share, driven primarily by the performance of the architectural segment. The company“s 3Q ends 2 December 2006, and fiscal year ends 3 March 2007. Apogee provides value-added glass solutions for the architectural, large-scale optical and automotive industries. “Continued solid production efficiencies in our architectural segment, combined with a strong commercial construction market are allowing us to raise operating margin expectations for the year and, therefore, increase our earnings per share guidance”, said Russell Huffer, Apogee chairman and chief executive officer. “We also have slightly increased our outlook potential for the large-scale optical segment, where we could see improved product mix for the remainder of the year”. “Somewhat offsetting these improvements are continued deterioration in markets and pricing for our auto glass businesses”, said Mr. Huffer. “We have begun the process of transitioning the auto replacement windshield portion of our auto glass segment to support architectural glass fabrication”. “We are very encouraged by the strength in our architectural business and the accompanying improvement in operating margins”, said Mr. Huffer. “We are pleased that our year-to-date architectural segment performance and strong backlog are allowing us to increase our earnings outlook for the year”. Overall fiscal 2007 revenues for the year are expected to increase by 12% to 15% (prior guidance was 13 to 17%). Architectural segment revenues are expected to increase 16 to 19% (prior guidance was 17 to 21 %). Growth is supported by the strong architectural backlog of USD 395.3 million at the end of October 2006. Large-scale optical segment revenues are expected to be down slightly, consistent with prior guidance. Auto glass segment revenues are expected to be down more than 10% (prior guidance was down 5 to 10%).