Volume 47, Issue 8- August 2012

FinancialFlash


Apogee Reports Slight Drop in Net Sales for Architectural Segment

Apogee Enterprises Inc. has reported a 0.3 percent drop in its net sales from continuing operations for its architectural business for the fiscal first quarter, as part of its most recent 10-Q report filed in July. The company reports net sales from continuing operations of approximately $134.9 million, compared with $135.3 million for the same period last year.

In addition, the company reduced its operating loss from continuing operations for the architectural business from last year. For the fiscal first quarter of 2011, the company reported an operating loss of $7 million for the fiscal first quarter within the architectural business, compared with $1.9 million this year—a 73.2 percent decrease. Apogee attributes the improvement to “improved architectural glass pricing and the impact of the volume growth in [its] storefront business, partially offset by lower margin work in the installation business that we anticipated.”

The architectural business’s backlog is also up 13 percent, at $267.3 million for the fiscal first quarter and the fourth quarter of 2011 and company officials are optimistic that this will continue, according to the report. “We expect approximately $188 million of the June 2, 2012, backlog to flow during the remainder of fiscal 2013,” said the company in a written report.

Apogee’s architectural business includes Viracon Inc.; Harmon Inc.; Wausau Window and Wall Systems; Linetec; and Tubelite.

As part of the report, the company noted that though it completed the sale of its large domestic curtainwall business and its exit from international curtainwall operations in several transactions in fiscal years 1998 through 2000, it saw $776,000 in accounts payable and accrued liabilities for the second quarter in these areas, and long-term liabilities of $509,000 during the fiscal first quarter.

“The remaining estimated cash expenditures related to discontinued operations are recorded as liabilities of discontinued operations and cover warranty issues relating to domestic and international construction projects that the company expects will be resolved over the next five years,” writes Apogee.

“These were both mega-project installation businesses and we haven’t done projects of that magnitude since we discontinued those businesses,” adds Apogee director of investment relations Mary Ann Jackson. “Our Harmon business does mid-size installation projects in the U.S. only, not internationally. Nothing has changed since we discontinued these businesses more than 10 years ago.”

Overall, the company’s net sales are up for the fiscal first quarter of 2012—listed at $154.1 million, compared with $153.3 million last year, an increase of 0.5 percent.

PPG Reports Increased Volume, Price Compression
Pittsburgh-based PPG Industries has reported that its glass segment sales for the second quarter totaled $273 million, down $1 million for the same period in 2011.

The company reports that “higher flat glass volumes were offset by lower pricing and the negative impact of foreign currency translation.”

Glass segment earnings totaled $23 million, a decrease of $6 million from the prior-year quarter as a result of lower pricing, according to the company’s most recent financial report.

PPG reported net sales of $4 billion for the second quarter for the company and net income of $362 million—a record quarter, according to the company’s report.

“Overall, our sales in local currencies grew in the quarter, led by continued strong organic growth in North America,” says PPG chair and CEO Charles Bunch. “Business in emerging regions also expanded, but results were mixed by end-use market. Organic growth in North America and emerging regions was comparable to first-quarter performance; however, these gains were partly offset by a further, fairly broad step-down in European demand. These regional variations were evident in nearly all our global businesses, which resulted in an overall flattening of our worldwide volume growth rate.”


USG
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