Apogee Reports First-Quarter Earnings Per Share Increase
Minneapolis-based Apogee Enterprises Inc. has announced its fiscal 2007 first-quarter earnings.
The company reported revenues of $195.1 million were up 19 percent in the 14-week period versus the prior-year 13-week period and earnings were 17 cents per share versus 14 cents per share a year earlier.
In the architectural products and services segment specifically the company reported the following highlights:
Revenues of $165.3 million were up 23 percent over the prior-year period due to higher architectural glass volume and pricing, and job flow in the installation business;
Operating income was $5.6 million, up 54 percent from a year ago as pricing and manufacturing operations continued to improve;
The current period includes a pre-tax net gain of $0.5 million from architectural segment asset dispositions;
First quarter operating margin was 3.4 percent, compared to 2.7 percent in the prior-year period. The margin increase from improved pricing and operational performance was somewhat offset by the higher than expected health care costs;
Segment backlog was $360.4 million, compared to a backlog of $235.0 million in the prior-year period and $321.0 million at the end of fiscal 2006.
We had a solid start to fiscal 2007, with strong revenue and earnings growth in the first quarter, said Russell Huffer, chairperson and chief executive officer. Our operating margins showed improvement from the prior year due to improved market conditions and better operations. And, margins would have been approximately one-half percentage point higher had we not experienced greater than expected health care utilization.
We had good operational performance in our architectural segment manufacturing businesses, he said.
Solutia Receives Underwritten Commitment to Refinance Euro
Solutia Inc. of St. Louis announced that its subsidiary, Solutia Europe SA/NV (SESA) has received a fully-underwritten commitment from Citigroup Global Markets Limited for a loan of approximately $256 million (USD), maturing in 2011. The loan is to refinance its approximately $256 million (USD) of 10 percent Euro notes due in 2008. The new loan is priced at EURIBOR plus 2.75 percent, which is currently about 6 percent.
Under the terms of the new loan, SESA will also be able to complete the previously announced sale of its pharmaceutical services business.
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