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APOGEE REPORTS LOWER EARNINGS FOR FOURTH QUARTER, FISCAL 1992

 APOGEE REPORTS LOWER EARNINGS FOR FOURTH QUARTER, FISCAL 1992
 MINNEAPOLIS, April 27 /PRNewswire/ -- Apogee Enterprises, Inc. (NASDAQ-NMS: APOG) today reported lower earnings for the fourth quarter and fiscal 1992, the result of continuing weak market conditions and competitive pricing pressures.
 For the fiscal year ended Feb. 29, 1992, Apogee recorded earnings of $8.5 million, or $.63 per share, down 50 percent from $17.0 million, or $1.25 per share, last year. Revenues of $596.3 million were virtually even with the prior year's figure of $599.5 million. Fiscal 1992 results included a restructuring charge in the third quarter of $4.1 million, or $.30 per share, primarily to consolidate the company's West Coast glass fabricating and coating facilities with its Minnesota operations. Excluding this charge, net earnings would have decreased 26 percent to $12.6 million, or $.93 per share.
 In the fourth quarter, net earnings declined 52 percent to $1.6 million, or $.12 per share, compared with $3.4 million, or $.25 per share, in the fourth quarter last year. Revenues slipped 3 percent to $142.4 million from $146.5 million.
 "Although we had forecast an earnings decline early in the 1992 fiscal year, this is a disappointment nonetheless after reporting six consecutive years of record results," said Donald W. Goldfus, chairman and chief executive officer. "Sharply lower margins in our replacement auto glass business, together with a continuing slump in U.S. nonresidential construction, have made operating conditions difficult. Given these circumstances, Apogee employees have done a remarkable job in generating solid financial results and outperforming our competitors.
 "Looking ahead, it's still too early to forecast an improvement in either our financial performance or our markets, but we certainly do not anticipate continuing declines of fiscal 1992's magnitude," Goldfus said. "Every one of our four divisions is working extremely hard to cut costs and improve productivity, to strengthen their competitive positions is working extremely hard to cut costs and improve productivity, to strengthen their competitive positions and to build sales by entering new markets."
 Apogee's year-end backlog was $232 million, a 5 percent decline from $245 million a year ago, but up 15 percent from the end of the third quarter. Goldfus described the backlog as "encouraging, but not yet enough to spell a trend reversal."
 Commercial Construction Division:
 Apogee's largest division, known primarily as Harmon Contract, reported record operating income of $15.4 million for the 1992 fiscal year, up 6 percent from the prior year. Revenues of $253.9 million were about even with levels in fiscal 1991. Harmon Contract is the nation's leading designer and installer of curtainwall and window systems. This past year, the division acquired three companies engaged in the assembly and installation of security and detention systems.
 "The commercial construction division has done an outstanding job of maintaining backlog and profitability by applying its bidding discipline and project management skills to a wider variety of jobs," Goldfus said. "The division is now active in the security market, it is winning smaller-sized governmental and institutional contracts and it is pursuing foreign work."
 Goldfus also noted that Harmon Contract recently secured its first Asian contract and is actively bidding on several major jobs in Europe.
 Window Fabrication Division:
 Also impacted by the continuing weakness in U.S. construction markets, the window fabrication division recorded operating income of $7.4 million, off 13 percent from strong levels the prior year. Sales increased 5 percent to $89.1 million. The division fabricates custom aluminum window and curtainwall systems and also manufactures premium window blind and shutters.
 "Our architectural metal units experienced soft pricing and slowing demand in the latter half of the year. In response, they have initiated a number of programs to cut costs, improve productivity and shore up sales," Goldfus said. "Once again, our Nanik venetian blind unit made a very nice contribution to division results, introducing new products and continuing to build sales overseas."
 Glass Fabrication Division:
 After absorbing the third-quarter charge to consolidate its operations, the glass fabrication division recorded an operating loss of $2.3 million for the year, compared with operating income of $670,000 in fiscal 1991. Division sales declined by 12 percent to $108.5 million.
 "Consolidating our glass fabrication and coating operations in Minnesota has significantly improved our capacity utilization, as well as eliminated the losses generated by the California facilities," Goldfus said. "It's worth noting that in the fourth quarter, the division's continuing operations posted a solid operating profit."
 Excluding the one-time charge, the division registered a significant improvement in operating income over the prior year. Leading the way was the Tru Vue picture framing glass unit, which made a solid turnaround and continues to build sales for its broad line of picture framing glass products.
 Installation and Distribution Division:
 The installation and distribution incurred a small operating loss for fiscal 1992. The division, which operates the second-largest retail chain of automotive glass stores, lost $494,000, compared with operating income of $9.8 million in the prior year. Sales rose 4 percent to $174.6 million. Profit margins have been severely squeezed by the dual impact of sharply reduced selling prices and a slump in the demand for replacement auto glass.
 "Because pricing pressures continue to be intense in the auto glass business, we have a number of cost-cutting programs underway that will help us operate more efficiently on thinner margins," Goldfus said. "We remain committed to expanding our network of stores, but we have slowed the pace of our program. In fiscal 1992, we opened or acquired 35 locations, but we closed 34 others, for a year-end total 314 retail and wholesale locations in 33 states."
 Viratec Thin Films:
 Viratec Thin Films, Apogee's optical-grade glass coating joint venture, made substantial progress over the year, continuing to cut losses and moving from technology development to some commercial production. Viratec manufactures anti-glare filters for computer monitors and enhanced front-surface mirrors for precision optical applications. Viratec's proprietary coating technology continues to hold exciting prospects for building higher-margin product lines.
 Balance Sheet Strength:
 Apogee's balance sheet strength continued to build. At year end, shareholders' equity was $113.8 million, or $8.45 per share, up 4 percent from $109.0 million, or $8.09 per share, at the end of the 1991 fiscal year. Long-term debt fell 14 percent to $25.3 million from $29.4 million, and stood at just 17 percent of total capitalization.
 Apogee Enterprises is an industry leader in the fabrication, installation and distribution of glass and aluminum. Its products and services include glass, windows and curtainwall for commercial and institutional construction and remodeling markets; curtainwall installation at major high-rise construction sites; design, manufacture and installation of institutional and government security systems; metal and glass coating services; fabrication, sale and installation of automotive glass; and such consumer-oriented products as venetian blinds, shutters, picture frame glass and computer anti-glare screens. Headquartered in Minneapolis, the company's stock is traded on NASDAQ's National Market System under the symbol APOG.
 For more information on Apogee Enterprises, Inc. via facsimile at no cost, dial 1-800-PRO-INFO and enter the company code number 014.
 APOGEE ENTERPRISES, INC. AND SUBSIDIARIES
 CONSOLIDATED CONDENSED STATEMENT OF INCOME
 (Unaudited)
 13 Weeks Ended Percent
 2/29/92 3/2/91 Change
 Net sales $142,354,000 $146,483,000 -3
 Earnings before income
 taxes 2,976,000 4,900,000 -39
 Income taxes 1,369,000 1,530,000 -11
 Net earnings $1,607,000 $3,370,000 -52
 Earnings per share
 Average common and common
 equivalent shares 13,483,000 13,570,000 --
 Earnings per common and
 common equivalent share $.12 $.25 -52
 Cash dividends per common
 share $.065 $.06 +8
 52 Weeks Ended Percent
 2/29/92 3/2/91 Change
 Net sales $596,281,000 $599,525,000 -1
 Earnings before income
 taxes 15,750,000 28,842,000 -45
 Income taxes 7,245,000 11,825,000 -39
 Net earnings $8,505,000 $17,017,000 -50
 Earnings per share
 Average common and common
 equivalent shares 13,512,000 13,630,000 --
 Earnings per common and
 common equivalent share $.63 $1.25 -50
 Cash dividends per common
 share $.260 $.24 +8
 -0- 4/27/92
 /CONTACT: Donald W. Goldfus or William G. Gardner, both of Apogee, 612-835-1874; or Michael Rosenbaum or Janet Denefe of the Financial Relations Board, 312-266-7800, for Apogee/
 (APOG) CO: Apogee Enterprises, Inc. ST: Minnesota IN: SU: ERN


KH -- MN006 -- 3074 04/27/92 11:14 EDT
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