Date: 13 February 2007
Apogee provides distinctive value-added glass solutions for the architectural, large-scale optical and automotive industries.
FISCAL 2007 OUTLOOK
"We are pleased to increase our outlook for fiscal 2007 earnings to $1.04 to $1.10 per share due to stronger performance to date in our fourth quarter, which ends March 3, 2007," said Russell Huffer, chairman and chief executive officer. Prior guidance was for earnings of $0.98 to $1.04 per share for the current year.
"We now anticipate that our revenues will be near the top of our prior range of 12 to 15 percent growth, with all of our businesses performing at or better than expectations," said Huffer.
"Our architectural and large-scale optical segments are expected to achieve operating margins at or near the top of our prior ranges, while the performance of our auto glass businesses, including the distribution joint venture, will be slightly more favorable than anticipated," he said. Prior fiscal 2007 operating margin guidance was 5.6 to 5.8 percent for the architectural segment and 11 to 12 percent for the large-scale optical segment.
"In addition, our outlook is for positive full-year free cash flow, and a slightly lower tax rate due to the extension of the federal research and development income tax credit," said Huffer. Free cash flow is defined as operating cash flow less capital expenditures.
FISCAL 2008 OUTLOOK
"For fiscal 2008, we expect to build on our strong finish to the current year," said Huffer. "We anticipate another year of significant growth in fiscal 2008, led by the performance of our architectural segment. Our outlook is for earnings of $1.20 to $1.30 per share on overall revenue growth of 8 to 11 percent. Our architectural segment backlog, which has increased to approximately $398 million from $390 million at the end of the third quarter, supports this growth.
"For our architectural segment, we're anticipating revenue growth of 12 to 15 percent as we bring on new capacity, and operating margins of 6.4 to 6.7 percent, up significantly from our expected operating margin of approximately 5.8 percent for fiscal 2007," he said. "We expect to maintain the operating improvements we've achieved in our architectural glass business, while starting up our new Southwest facility during the first quarter. At the same time, we anticipate continued improvement in our installation and window businesses.
"Our commercial construction markets continue strong and the sectors we serve value our energy-efficient, hurricane and blast value-added glass products and services," said Huffer.
"As we continue to focus on growing our value-added picture framing glass business and transition away from pre-framed art and consumer electronics products, we expect our large-scale optical revenues will be down slightly in fiscal 2008," he said.
"Our auto glass revenues will decline significantly as we complete our exit of the auto replacement windshield market."
The following statements are based on current expectations for fiscal 2008. These statements are forward-looking, and actual results may differ materially.
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