Architectural glass segment leads growth for Apogee in first quarter
Officials from Minneapolis-based Apogee Enterprises reported overall revenue growth and increasing margins for the company in the first quarter of fiscal year 2007.
Executives presented the company’s Q1 earnings report during a conference call June 28, highlighting 23 percent revenue growth for the architectural glass segment in the quarter compared to the same period last year.
The company’s overall revenues increased 19 percent in the quarter, with earnings per share up 21 percent from 14 cents in first quarter of fiscal 2006 to 17 cents in first quarter of fiscal 2007, reported Russell Huffer, chairman, president and chief executive officer.
Stronger market conditions and better operational performance also boosted operating margins 4.1 percent for the quarter, compared to 3.8 percent during the same period last year, Huffer said during the conference call.
However, Apogee’s installation business did not mirror the booming growth in margins for the quarter, Huffer noted.
“We had good operational performance in our architectural segment manufacturing businesses, while our glass installation business continues to flow some older, lower margin projects that are nearing completion,” Huffer said. In addition, the installation business faced lagging growth in some regions, he said.
“The coast, Northeast, Southeast, West Coast are more robust than the central portion of the country,” Huffer said. “But they are all pretty solid.”
Apogee’s installation business, Harmon Inc. of Eden Prairie, Minn., operates 13 offices nationwide, with more than half in the Midwest.
The forecast for the remainder of fiscal 2007 remains strong, due in large part to an architectural backlog of $360 million that includes two high-end hotel casino projects and several large private education, health-care and office projects, Huffer said.
Apogee serves as the parent for architectural glass fabricator Viracon of Owatonna, Minn., and window system and curtain-wall manufacturer Wausau Window and Wall Systems of Wausau, Wis. The company’s 2007 fiscal year began Feb. 26.