Apogee Reports Decline in Architectural Segment Revenues for Fiscal ’11 Full Year Results
April 7, 2011
In announcing its fiscal 2011 full-year and fourth-quarter results, Minneapolis-based Apogee Enterprises Inc. reported a 19-percent drop in architectural segment revenues, as well as an operating loss of $37.7 million compared to earnings of $31.6 million in the prior-year period.
For the fiscal year fourth quarter compared to last year’s, architectural segment revenues were $128 million, a 2-percent decline compared to the prior year. The company also reported the segment saw an operating loss of $9.9 million compared to a loss of $3.6 million last year. Apogee says segment losses were driven by low pricing, costs to implement productivity improvements and expenses related to quality issues, all in the architectural glass business. The segment continued to operate at a low capacity utilization of 50 percent, similar to the level in the prior-year period. The statement adds that the company’s installation business performed well, as it completed projects that had been awarded with higher margins.
Late last year Apogee acquired 100 percent of the stock of Glassec Vidros de Segurança Ltda., an architectural glass fabricator in Brazil, for approximately $22 million plus assumption of approximately $2 million in debt. This acquisition added $3.7 million to segment revenues, but had minimal impact on the bottom line.
Apogee’s architectural segment’s backlog grew to $237.2 million, with an increase in order intake and inclusion of $15 million in backlog from the Brazilian acquisition; this compares to architectural segment backlog of $165.7 million at the end of the third quarter and $227.5 million at the end of the prior-year period. The level of projects awarded but not yet reflected in backlog declined approximately $30 million in the quarter to $50 million at the end of the fourth quarter, but remains above the historical level of projects awaiting final contracts.
The company says approximately $200 million, or 84 percent, of the backlog is expected to be delivered in fiscal 2012, and approximately $37 million, or 16 percent, in fiscal 2013.
Company-wide for the full year compared to last, revenues were down 16 percent to $582.8 million and there was an operating loss of $21.0 million, compared to earnings of $45.4 million in the prior year.