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Apogee posts 2Q loss as architecture slumps

Apogee Enterprises reported a fiscal 2011 second-quarter loss, with a weak commercial construction market pushing revenue down 23%.
The company says it also expects to post a loss in the second half …

Apogee Enterprises reported a fiscal 2011 second-quarter loss, with a weak commercial construction market pushing revenue down 23%. The company says it also expects to post a loss in the second half of the year, because of losses in its architectural division. In turn, revenue for the year will fall about 15%. The company reported a loss of USD 122,000, or break-even on a per share basis, in the 13 weeks ended 28 August, which compares with net income of USD 13 million, or 47 cents per share, in the prior-year period. Apogee“s discontinued operations provided non-cash earnings of 18 cents a share. Revenue dropped to USD 144.7 million from USD 187.4 million. Analysts forecast average revenue of USD 145.4 million. Throughout the quarter, a challenging commercial construction market pushed prices lower and cut into Apogee“s profit margins. Weak prices for architectural glass and falling sales led to an operating loss of USD 10.8 million in Apogee“s architectural segment, which also saw revenue tumble 25%. According to Apogee Chairman and CEO Russell Huffer, the entire year will be rough for the company“s architectural operations. Our outlook for fiscal 2012 is more positive, he said. We expect that recent architectural glass price increases along with the forecasted beginning of a market recovery should allow us to return to profitability for the full fiscal year. The company anticipates it will have positive cash flow from operations in the second half of the year.

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