Architectural Segment Revenues Decline for
Apogee in Fiscal 2011 First-Quarter
June 23, 2010
For the first-quarter of fiscal 2011 Apogee Enterprises reported
that its architectural segment revenues declined 24 percent, with
an operating loss of $8.6 million. The segment also reported backlog
ending at $214.9 million, compared to $227.5 million at the end
of fiscal 2010 and $310.0 million in the prior-year period.
"As we expected, fiscal 2011 started out to be extremely challenging
due to the tough commercial construction market conditions,"
said Russell Huffer, Apogee chairman and chief executive officer.
"Our strategy to manage our business over a cycle has allowed
us to establish a strong balance sheet, with cash on hand. This
positions us well during these difficult markets.
Huffer added, "Architectural segment revenues were down comparable
to our markets served, which have been impacted by tight commercial
real estate credit and depressed employment levels. First-quarter
architectural segment losses were the result of low pricing and
low volume, although our manufacturing operations and installation
project execution performed well.
"Although fiscal 2011 will be difficult for our architectural
businesses, we are well positioned financially; have leading products,
services and brands; and remain focused on operational and strategic
initiatives to strengthen our business for the rebound in our markets."
FY11 first-quarter results compared to the prior year period for
Apogees architectural products and services segment saw revenues
of $126.4 million, down 24 percent, as well as an operating loss
of $8.6 million, compared to income of $10.8 million. Bidding activity,
which continues to be driven by institutional work, is starting
to grow; however, bid-to-award timing remains slow, according to
the company. The company says approximately $160 million, or 74
percent, of its backlog is expected to be delivered in fiscal 2011,
and approximately $55 million, or 26 percent, in fiscal 2012.
Also in its results, Apogee reported revenues of $143.0 million
were down 21 percent and an operating loss of $6.1 million, compared
to earnings of $11.7 million. Loss from continuing operations was
13 cents per share, versus earnings of 27 cents per share. Cash
and short-term investments totaled $69.6 million, compared to $102.6
million at the end of the fiscal 2010.
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