Apogee shares fall 10.9 percent on forecast of profit shortfall

Date: 21 February 2003
Source: Startribune.com

Date: 21 February 2003

Apogee Enterprises Inc., citing profit pressures in two of its three business segments, said Wednesday that earnings for the fourth quarter ending March 1 will be significantly lower than expected.

That means more cost-cutting measures, including an undetermined number of layoffs, are underway, the company said.

The Bloomington-based glassmaker's stock dropped more than 10 percent to close Wednesday at $8.48, down $1.04.

Apogee said it now expects earnings from continuing operations of 10 to 12 cents a share for the quarter, down from its December estimate of 18 to 20 cents a share. Analysts' consensus estimate was 18 cents, according to Thomson First Call.

Apogee said its architectural glass business, which supplies glass for skyscrapers and other commercial buildings, has been hurt by a sluggish economy that is causing some customers to delay planned proj ects. In addition, heavy competition has led to pricing pressure in the replacement auto-glass business, the company said. The optical business is meeting expectations and continuing to improve.

CEO Russ Huffer said the company is implementing cost-cutting measures in the architectural glass unit to offset the slowdown in the current quarter and first half of fiscal 2004. Apogee spokeswoman Mary Ann Jackson said there have been some layoffs in that unit and there will be more, although she couldn't say how many. Employment in that segment fell by about 100 jobs in January, including layoffs and attrition, she said. Apogee has about 5,300 employees companywide.

Analyst Eric Martinuzzi of Craig-Hallum Capital said he is maintaining his "buy" recommendation on Apogee despite the earnings shortfall. The architectural glass unit, Apogee's largest business, is in a highly cyclical industry that has been hurt by the poor economy, he said.

"Apogee still dominates the high-end architectural market," he said. "Management has done a solid job of running the business and taking costs out."

Shane Glenn, an analyst with Dougherty & Co., said that Apogee is "facing conditions beyond its control" and that he too is maintaining a "buy" on the stock.

"Apogee continues to maintain a lead in its categories," Glenn said. "I believe when the market does improve, the stock will perform quite well."
600450 Apogee shares fall 10.9 percent on forecast of profit shortfall glassonweb.com

See more news about:

Others also read

MORE...

Emirates Glass wins major deals
Local quality glass producer Emirates Glass Limited has won contracts to supply 68,000 square metres of its high quality EmiCool glass to five major projects in Dubai.
Southwall Technologies Secures New Bank Loan and Equity Financing Agreement Led by Needham & Company
Southwall Technologies Inc. (Nasdaq:SWTX), a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass and architectural markets, today announced that on Dec. 18, 2003, it secured an agreement for a new bank loan guarantee and equity financing package of up to $7.5 million from Needham & Company, Inc., its affiliates and Dolphin Asset Management.
KUB accepts Nippon Sheet Glass offer
KUB Malaysia Bhd has accepted an offer from Nippon Sheet Glass Co Ltd (NSG) to acquire its 15% stake in Malaysian Sheet Glass Bhd (MSG) for RM32.6 million in cash, or RM2.68 per share.
Micro-Tek Canada, Inc. and Co-Ventures in Glass Containers, Ltd.
Co-Ventures in Glass Containers (CVIGC, Ltd.) of Tampa, Florida, USA and Micro-Tek Canada, Inc. Of Toronto, Canada are excited to announce the beginning of a long term joint venture to combine their extensive experiences and resources to offer the Glass Container Industry globally a best value alternative for all their outsourcing needs in manufacturing, operations and technical assistance agreements, specifically targeted to the smaller manufacturers who have found the larger service companies to be cost and profit prohibitive.The principals of the two companies have found a global need for smaller glass companies who require excellent technical resources to properly compete within the industry without the high costs of employing their own staffs or outsourcing their requirements to the larger service companies whose own operating costs and overhead are substantial.
Autoglass maker dumps dumping charges
China's largest automobile glass maker Fuyao Glass Industry Group Co, Ltd, won its case against the dumping ruling of the US Department of Commerce (DOC).
History of Glass Wine Bottles
When did the wine industry start using glass bottles, and how did they settle on their current size of 750ml? For the answer to these questions, you have to go back in time - back thousands of years to when wine was first cultivated and enjoyed.

Add new comment