Apogee Revises Fiscal 2004 Fourth Quarter Guidance

Minneapolis-based Apogee Enterprises Inc. has announced it has lowered earnings guidance for its fiscal 2004 fourth quarter, ending February 28.

The revised guidance for fourth quarter continuing operations is a loss of 8 to11 cents per share, including restructuring charges of 2 to 3 cents per share related to the integration of Apogee's two large-scale optical segment businesses. The expected operating losses are somewhat offset by the net tax benefit. The previous guidance for the fourth quarter was earnings from continuing operations of 3 to 6 cents per share prior to restructuring charges. The new full-year guidance is a range of earnings of 19 to 22 cents per share from continuing operations, versus the previous earnings guidance of 33 cents per share from continuing operations.

"Our outlook for continuing operations in the last quarter of the year has declined, primarily due to our continuing difficulty in accurately predicting job timing and flow," said Russell Huffer, chairman, president and chief executive officer. "We had approximately $14 to $17 million in revenues shift from the fourth quarter of fiscal 2004 into fiscal 2005 as a result of project delays and adjustments to project timing and flow, which is expected to reduce operating income by $2.8 to $4.8 million in the quarter. We have not seen any decline in our backlog, just timing movement, a situation most predominant in our curtainwall and window manufacturing and installation businesses.

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