Volume 36, Issue 10, October 2001

FinancialFlash

Apogee Reports Significant Increase in Second-Quarter Earnings
Apogee Enterprises Inc. of Minneapolis has announced its second quarter fiscal 2002 net earnings increased by 140 percent compared to the same period last year.

According to the report, earnings were 36 cents per share, or $10.3 million compared to 15 cents per share, or $4.2 million in fiscal 2001’s same period (all earnings per share refer to diluted earnings per share). Apogee also reported second-quarter revenues totaling $210.2 million, compared to revenues of $236.4 million last year. The company noted the 3-percent drop in revenues due to the PPG Auto Glass LLC joint venture in July 2000. However, the company’s operating margin was 7.6 percent, up from 4.5 percent the year before.

“Our success in achieving consistent earnings growth is evident—we have now exceeded prior-year earnings for the fourth quarter,” said Russell Huffer, Apogee chairperson, president and chief executive officer. “And I’m pleased to report that despite the economic slowdown, we are seeing growth in our architectural segment, our largest and strongest, as the construction industry continues to expand its use of our value-added glass and window products and services.”

Revenues for Apogee’s architectural products and services segment grew 6 percent to $120.0 million compared to $113.1 million last year. Operating income increased 50 percent to $9.0 million, from $6 million a year ago. Apogee attributes the strong increase to a combination of increased revenue, more efficient and effective operations and a higher-margin product mix.

The large-scale optical technologies segment reported revenues of $15 million compared to $21.6 million in the prior year. It also reported an operating loss of $1.5 million compared to operating income of $1.4 million the year before.

In the automotive replacement segment second-quarter revenues were $75.2 million compared to $101.7 in the prior year. Apogee said the segment’s revenues decreased by 9 percent after being adjusted for the PPG Auto Glass joint venture. Operating income, however, was reported to be $8.9 million compared to $3.4 million last year. According to Apogee, approximately 70 percent of the improvement resulted from the amendments made to the supply agreements related to the PPG Auto Glass joint venture, 34 percent owned by Apogee and 66 percent by PPG, of which approximately one-third was a one-time net increase. 


USG

© Copyright Key Communications Inc. All rights reserved. No reproduction of any type without expressed written permission.