Apogee Enterprises 1Q net down 26 percent on lower sales

Apogee Enterprises Inc.'s (APOG) fiscal first-quarter profit dropped 26 percent on lower sales resulting from the poor commercial real estate market and the weak economy.

Chief Executive Russell Huffer blamed the results on continued tight commercial real estate credit, increasing unemployment and soft retail markets.

Huffer said the commercial-glass provider continues to cut jobs and has lowered costs by more than $40 million on an annual basis since October.

As positive signs, he pointed to a relatively flat backlog in the architectural segment compared with the previous quarter and minimal cancellations. And he said Apogee expects to benefit from economic stimulus projects to upgrade government and school buildings "although it may not be until fiscal 2011," according to a June 23 article in The Wall Street Journal.