Apogee Enterprises reports 2Q loss with weak prices in architecture cutting margins
By APThursday, September 16, 2010
Apogee posts 2Q loss as architecture slumps
MINNEAPOLIS — Apogee Enterprises fell to a fiscal 2011 second-quarter loss, the glass maker reported Thursday, with a weak commercial construction market pushing revenue down 23 percent.
Apogee expects to post a loss in the second half of the year as well due to losses in its architectural division. Revenue for the year will fall about 15 percent.
The company reported a loss of $122,000, or break-even on a per share basis, in the 13 weeks ended Aug. 28. That compares with net income of $13 million, or 47 cents per share, in the prior-year period.
Apogee’s discontinued operations provided non-cash earnings of 18 cents a share.
Analysts polled by Thomson Reuters estimated a loss of 9 cents a share, on average. Analysts typically exclude one-time items.
Revenue fell to $144.7 million from $187.4 million. Analysts forecast an average revenue of $145.4 million.
Throughout the quarter, a challenging commercial construction market pushed prices lower and cut into Apogee’s profit margins.
Weak prices for architectural glass and falling sales led to an operating loss of $10.8 million in Apogee’s architectural segment, which also saw revenue tumble 25 percent.
Apogee Chairman and CEO Russell Huffer said the entire year will be rough for the company’s architectural operations.
“Our outlook for fiscal 2012 is more positive,” he said. “We expect that recent architectural glass price increases along with the forecasted beginning of a market recovery should allow us to return to profitability for the full fiscal year.”
The company anticipates it will have positive cash flow from operations in the second half of the year.
Shares of Apogee Enterprises Inc. fell 44 cents, or 4.6 percent, to $9.30 in aftermarket trading Wednesday.
Tags: Business And Professional Services, Materials, Minneapolis, Minnesota, North America, United States