Apogee posts Q2 loss on weak construction market

Apogee Enterprises Inc. posted a loss in the second quarter of its 2011 fiscal year, citing declining sales amid a slumping commercial construction market.

The Bloomington company, which makes glass for windows and picture frames, reported a net loss of $122,000, or 0 cents per share for the quarter ended Aug. 28. That compares to a profit of $13 million, or 48 cents a share, in the comparable period last year.

The second-quarter results include earnings of 18 cents per share from discontinued operations. Excluding that, the company had an operating loss of $7.4 million, or 18 cents per share, down from a profit of $17.9 million, or 46 cents per share, in the prior-year period.

Apogee reported revenue of $144.7 million in the second quarter, down 23 percent from $187.4 million last year.

“Our results are being impacted by extremely challenging commercial construction market conditions with low pricing and tight project margins,” Apogee Chairman and CEO Russell Huffer said in a statement.

Apogee (NASDAQ: APOG) expects those conditions to linger throughout the rest of 2011. The company anticipates a loss for the second half of the year with companywide revenue for full-year fiscal 2011 falling 15 percent.

“Fiscal 2011 will continue to be challenging for our architectural segment, given tough commercial construction market conditions and the fact that Apogee is a late-cycle company and lags the markets,” Huffer said. “Our outlook for fiscal 2012 is more positive – 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."