Volume 37, Issue 2, February 2002

FinancialFlash

Visteon Announces Fourth-Quarter Results; Shows $14 Million Loss

The Dearborn, Mich.-based Vis-teon Corp. has announced a 2001 fourth-quarter loss of $14 million or 11 cents per share, compared to a loss of $87 million or 67 cents per share for the same period of 2000. For the entire year, Visteon reported a loss of $118 million or 91 cents per share. Excluding previously disclosed restructuring charges of $121 million or 93 cents per share, the company posted earnings of $3 million or .02 cents per share for 2001.

Visteon chairman and chief executive officer Peter J. Pestillo attributed the year’s losses to production cuts and the overall economy of the United States. “2001 was a tough year. We had sold the operating performance in the first half, but major production cuts and erratic production schedules by our largest customers led to weaker financial performance in the second half,” Pestillo said. “Restructu-ring and other actions taken early in the year helped offset the impact of a weaker economic environment and allowed us to maintain a solid financial position. I’m also pleased that we’ve put a strong management team in place that will help drive breakeven down and position us for growth when the economy recovers.”

Fourth-quarter sales for Visteon were $4.5 billion, a drop of $36 million compared with the same period last year. Sales for 2001 were $17.8 billion, down more than $1.6 billion compared with 2000.


Apogee Reports Fiscal Third-Quarter Results

Minneapolis-based Apogee Enterprises has reported that its third-quarter fiscal 2002 net earnings increased more than 90 percent from the same period of the previous year. The company’s third-quarter earnings were 20 cents per diluted share, or $5.8 million, versus 11 cents per diluted share, or $3.0 million, in the fiscal 2001 period. Revenues for the third quarter totaled $200.3 million, up slightly from revenues of $197.3 million in the same period last year. Apogee’s operating margin was 5 percent in the third quarter, up from 2.7 percent in the previous year.

“Throughout fiscal 2002 we’ve continued to increase earnings and improve operations, demonstrating our focus on these two key objectives,” said Russ Huffer, president and chief executive officer. “And, we again achieved strong revenue and earnings growth in our architectural segment, our largest, as the construction industry continues to expand its use of our value-added glass and window products and services. At the same time, performance in our auto replacement glass and large-scale optical segments was in line with our modest expectations.”

Revenues for Apogee’s largest segment—the architectural segment—grew 16 percent to $124.6 million during the fiscal 2002 third quarter, compared to $107.2 million in the prior-year’s quarter. Operating income increased 60 percent to $9.1 million from $5.7 million a year ago.

In large-scale optical technologies, revenues were $16.1 million, compared to $24.9 million in the same period of the previous year. The segment reported an operating loss of $1.5 million, compared to an operating income of $3.3 million in the same period last year. The company attributed these losses to the downturn in the PC industry and the slowdown in retail framing markets, along with the closure of its San Diego facility earlier this year.


Royal Group Announces First-Quarter Results

Based in Toronto, Royal Group Technologies has announced results of its 2002 first quarter, which ended December 31, 2001, showing net sales up 9 percent to $384 million compared to the same period last year. Net earnings were $24.9 million, or 27 cents per share, fully diluted, compared to $22.7 million, or 25 cents per share last year.

EBITDA margins were $78 million compared to $72 million last year. The company’s product segment generated EBITDA of $34 million, while the support segment generated $44 million.

According to Vic De Zen, Royal’s chairperson, president and chief executive officer, Royal’s recent acquisition of Marion, Va. based Marley Mouldings “is proceeding rapidly and successfully, with Marley taking advantage of Royal’s ... raw materials capabilities.”

 


USG

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