Apogee Second Quarter Earnings from Continuing Operations Increase; Fiscal 2009 Earnings Guidance Reduced

Apogee Enterprises, Inc. (Nasdaq:APOG) on Sept. 17, 2008 announced fiscal 2009 second quarter earnings. Apogee provides distinctive value-added glass solutions for the architectural and picture framing industries.

SECOND QUARTER HIGHLIGHTS

-- Revenues of $245.0 million were up 13 percent from the prior-year period.

-- Operating income was $18.8 million, up 9 percent from the prior-year period.

-- Earnings from continuing operations were $0.43 per share versus $0.40 per share a year earlier.

-- Architectural segment revenues grew 15 percent, and operating income increased 6 percent versus the prior-year period.

-- Large-scale optical segment revenues declined 17 percent, and with higher operating margins, operating income declined just 4 percent compared to the prior-year period.

-- Net earnings were $0.43 per share versus $0.39 per share in the prior-year period.

-- Fiscal 2009 guidance: expected earnings from continuing operations are now $1.65 to $1.82 per share, down primarily due to project delays and two project cancellations.

Commentary

"Architectural segment revenue growth continued in the second quarter, and operating performance was strong in all segment businesses except architectural glass, where internal operational challenges impacted us throughout the quarter," said Russell Huffer, Apogee chairman and chief executive officer.

"Our large-scale optical segment turned in a strong operating margin performance, while revenues were negatively impacted primarily by the elimination of less-profitable product lines and somewhat by soft picture framing market conditions," he said. "In addition, the company continued to generate significant positive cash flow in the quarter.

"We are bringing down our fiscal 2009 full-year guidance due to softer and uncertain architectural market conditions that are resulting in project delays and cancellations in our architectural glass business, along with operational issues this business experienced in the second quarter," said Huffer.