Volume 39, Issue 10, October 2004

FinancialFlash

Apogee Enterprises Reports Second Quarter Fiscal 2005 Earnings
Apogee Enterprises Inc., of Minneapolis, has announced its fiscal 2005 second quarter earnings. According to a company news release, revenues increased 11 percent versus the prior-year period. 

“We are pleased that our second-quarter results met internal expectations,” said Russell Huffer, chairperson and chief executive officer. “Our architectural segment again turned in a solid performance in soft commercial construction markets.”

Architectural segment revenues were up 21 percent and operating income grew to $4.6 million from $0.9 million in the prior-year period. Improved earnings resulted from higher sales and improved efficiency and project execution, offset by competitive pricing, said the company’s report. 

“We expect that our architectural segment will continue to do better than the commercial construction industry this year,” Huffer said. “We are anticipating architectural segment revenue growth of 14 to 17 percent for the fiscal year with continued pressure on margins. This is an increase from our previous outlook of 8- to 11-percent growth. We are gaining architectural market share with the success of our initiatives, including growth in our installation business and penetration of protective and hurricane markets.”

The company has also announced an expansion of architectural glass fabrication capacity estimated to cost approximately $12 million. 

“We are investing approximately $12 million to expand our architectural glass fabrication capacity by approximately $20 million in annual revenue,” Huffer said. “This new capacity will be available to serve growth in our core, higher-end markets resulting from our initiatives and the market exit of an architectural glass fabricator. We’ve been focused on growing sales of our value-added glass, including energy-efficient, hurricane and blast products, to the office, health care, education and institutional markets. We will also leverage this core market capacity to serve a portion of the broader market for smaller, less complex projects within 500 miles of our two facilities.” 

Glaston Technologies Reports Half-Year Results

Kyro Group has announced that its main business area, Glaston Technologies, which includes Tamglass and Z. Bavelloni, achieved a good half-year result, despite the slow economic cycle and the strong euro. Net sales for the company totaled EUR 93.8 million (USD 114.1 million).

“The order book of Kyro’s main business area, Glaston Technologies, grew in the second quarter by 16 percent and totaled EUR 56.6 million (USD 68.8 million) on June 30, 2004,” said Pentti Yliheljo, president and chief executive officer. “The level of the offer book for glass processing machines is also good. The positive development of the order book, alongside growth in maintenance business and demand for tools, strengthens our expectations that a market upturn in the glass processing industry is approaching.”

According to a company news release, demand in the United States has been growing for glass processing machines. In the U.K., Italy and Spain and several Far Eastern markets, demand remains good as well. 

In addition, Glaston Technologies is enhancing and supplementing its local customer-service and agent network. Consolidation of offices and new joint sales and service units in Shanghai and Moscow are intended to improve customer service and sales of comprehensive deliveries under the company’s One-Stop-Partner concept and boost cross-selling. 


USG

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