Segment Performance Helps Raise Apogee's Fiscal 2008 Guidance
As a result of the stronger performance of its architectural businesses,
Apogee Enterprises Inc. in Minneapolis has increased its earnings
guidance for fiscal 2008.
"We have increased our fiscal 2008 earnings guidance for continuing
operations to $1.43 to $1.53 per share, as a result of the stronger
year-to-date performance of our architectural and picture framing
businesses," says Russell Huffer, Apogee chairperson and chief executive
officer. The previous guidance for earnings from continuing operations
was $1.37 to $1.47 per share.
Revenues of $217.7 million were up 20 percent compared to the prior-year
period. Earnings from continuing operations were $0.40 per share
versus $0.26 per share a year earlier. Net earnings were $0.39 per
share versus $0.26 per share in the prior-year period.
Based on its second quarter results, the company's outlook for
fiscal year 2008 earnings from continuing operations was increased
to a range of $1.43 to $1.53 per share, up from its prior guidance
of $1.37 to $1.47 per share.
"We've completed another strong quarter, and are very pleased with
our second quarter earnings and cash flow," says Huffer.
Revenues for the company's architectural segment (which includes
Viracon) grew 21 percent, and operating income increased 57 percent
as compared to the same period in 2006.
"Our architectural segment continued to operate well in a strong
market," said Huffer. "Revenues increased significantly due to strong
project flow and a low level of project delays in the quarter, and
pricing remains good. In addition, the expansion of our architectural
glass capacity, including the ramp up of the new Utah plant and
conversion of our auto glass factory, is on schedule.
Huffer also noted that the architectural backlog remains high at
$405.4 million, and that the segment recorded new orders of $190
million, one of the highest booking quarters.
The architectural products and services segment saw revenues of
$198.1 million, up 21 percent over the prior-year period. Operating
income was $14.4 million, up 57 percent from a year ago. Operating
margin was 7.3 percent, compared to 5.6 percent in the prior-year
"We have slightly increased our fiscal 2008 architectural segment
guidance to revenue growth of 13 to 15 percent and operating margins
of 6.7 to 7.1 percent," said Huffer. "Our commercial construction
markets are strong. McGraw-Hill Construction forecasts growth for
non-residential construction markets through fiscal 2009, with markets
flat in fiscal 2010 and then modest growth for the following few
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