Glass Companies See Some Improvement, But Segments Lag Year-Over-Year

While the financial statements for Apogee Enterprises Inc. and NSG Group show improvement from the  previous quarter, many segments still lag in year-over-year comparisons.

Apogee Enterprises

Apogee’s third-quarter 2021 revenue was $313.6 million, compared to $337.9 million in the third quarter of fiscal year 2020, which ended November 28, 2020. This reflects market-related volume declines in the architectural framing systems and architectural glass segments and was offset partially by growth in the architectural services and large-scale optical segments. The company’s Q3 2021 operating income was $49.8 million, compared to $21.6 million during the same period last year.

Earnings were $1.42 per diluted share, compared to $0.57 per diluted share in the prior-year period, which included a pre-tax gain of $19.3 million on the sale of a building and $1.4 million of pre-tax costs related to COVID-19. Excluding these items, adjusted earnings increased to $0.90 per diluted share, from $0.57 in the prior year.

Architectural Framing Systems

Third-quarter revenue for Apogee’s architectural framing systems segment, which includes Alumicor, EFCO Corp., Linetec, Sotawall, Tubelite and Wausau Window and Wall Systems, was $136.7 million, compared to $165.5 million in the prior-year period, primarily reflecting COVID-19 and market-related project delays, and lower volume for short lead-time products. Operating income in the quarter increased to $7.2 million, with operating margin of 5.3%, from $6.3 million and 3.8% respectively in the prior-year quarter, primarily driven by cost reductions, which offset the impact of lower revenue. Segment backlog increased to $408 million, compared to $404 million at the end of the second quarter.

Architectural Glass

The architectural glass segment, which includes Viracon, had operating income of $10.8 million and operating margin of 12.8%, compared to operating income of $4 million and margin of 4.6% in last year’s third quarter. Third quarter results included $7.4 million of operating income related to a new markets tax credit transaction.

Architectural Services

Third-quarter revenue for the architectural services segment, which includes Harmon, grew 11% to $76.7 million, from $69 million in the prior-year quarter, driven by increased volume from executing projects in backlog. Third-quarter operating income increased to $8.6 million with operating margin of 11.2%, up from $6.5 million and 9.5% respectively in the prior-year period, primarily driven by strong project execution. Segment backlog stood at $597 million, compared to $665 million at the end of the last quarter, and $607 million a year ago.

NSG Group

NSG Group saw a dip in revenue in Fiscal Year 2020, largely due to the COVID-19 pandemic. The company’s 2020 revenue was nearly $5.4 billion*, down from approximately $5.9 billion in 2019.

The company’s trading profit was $222 million in 2020, compared to nearly $374.5 million in 2019. The profit before taxation was a $130.7 million loss in 2020. The last time the company saw a loss in this category was in 2016. Fiscal year 2019’s profit before taxation amount was approximately $219.2 million.

The architectural glass segment’s yearly revenue was nearly $2.3 billion, down slightly from the previous year’s revenue of approximately $2.4 billion. The segment’s FY2020 operating profit was $167.2 million, down from $248.9 million in FY2019.

Editor’s Note: These amounts were converted from Japanese yen to U.S. dollars on December 15, 2020. 

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