Apogee Enterprises, Inc. of the United Staes reported record sales and earnings for the first quarter of the fiscal year 1997-98. Net earnings for the first quarter ended 31 May 1997 increased 36% to …
Apogee Enterprises, Inc. of the United Staes reported record sales and earnings for the first quarter of the fiscal year 1997-98. Net earnings for the first quarter ended 31 May 1997 increased 36% to US$ 6.8 million from US$ 5 million in the corresponding quarter last year. Earnings per share were US$ 0.24, up 33% from US$ 0.18 in the prior year, reflecting Apogee“s 2:1 stock split which took effect on 14 February 1997. The increase in earnings derived from a 29% climb in operating income to US$ 13.3 million. Consolidated sales rose 7% to US$ 245 million in the first quarter (Last year, for the same period, net sales were US$ 229 million). Donald W. Goldfus, Chairman, Chief Executive Officer and President of the company, said that Apogee“s strong increase in first quarter earnings was mainly due to continued growth in Glass Technologies and improvement in the overall profitability of Building Products & Services. He said the firm is taking decisive steps to improve profitability in the Building Products & Services and Auto Glass segments. The growth reported in the Glass Technologies segment was due to the fact that Viratec Thin Films continued to generate solid results in its flat glass business and began to develop significantly higher sales volumes in its coating of curved glass surfaces of cathode ray tubes (CRT) for computer monitors. With the increase in volumes, margins have begun to improve and the CRT business was operating above break-even profit levels by the end of the first quarter of 1997. By contrast, first quarter earnings at Viracon, the segment“s largest business, were flat due partly to an unusually large number of customer shipments delayed to following quarters. Mr. Goldfus noted that Viracon“s delays were primarily a matter of timing, and that customer demand remains strong. Mr. Goldfus went on to say that the Glass Technologies segment is ready for another year of strong growth. The outlook for Viratec is now much more positive than in recent years, bolstered by plans to expand its flat glass product lines this fiscal year and the potential for substantial improvements in margins for its CRT business. In addition, growth at Viracon remains steady, and the company“s orders delayed from the first quarter could make results even better in the quarters ahead.