Volume 48, Issue 11- November 2013

Financial Flash

Apogee Architectural Segment Sees Second-Quarter Revenue Growth

Apogee Enterprises reported a slight increase in second-quarter revenues in its quarterly financial report, and has its architectural glass segment to largely thank for it.

“Apogee recorded another good quarter, with growth in revenues, operating income and backlog,” says Joseph F. Puishys, the company’s chief executive officer. “We also grew cash and short-term investments in a quarter when we made an acquisition.”

The company reported overall revenues of $178.3 million, a one percent increase from this same time a year ago, while operating income rose 24 percent. Apogee’s architectural glass segment enjoyed a revenue growth of 11 percent with its overall revenues of $70 million. The segment’s operating income of $800,000 was a vast improvement from its previous operating loss of $2 million.

Apogee’s strong performance in the architectural glass segment helped offset losses in both architectural services (down 10 percent with revenues of $42.2 million) and architectural framing systems (down five percent with revenues of $49.5 million). The company’s large-scale optical technologies segment saw revenues increase slightly by one percent to $19.7 million.

“The biggest contributor to our strong operating income growth was our architectural glass segment, which benefited from improved mix, pricing and productivity,” Puishys says.

Glaston Revises Strategy, Financial Targets

Glaston has updated its strategic guidelines and financial targets for the 2013 – 2016 period. The company says its goal is to deliver profitable growth through innovation and technology leadership in selected product groups, while at the same time ensuring the best customer benefit and experience in the industry, according to the announcement.

The safety glass market, the company’s main field of business, is expected to grow by nearly 7 percent per year up to 2017, according to the statement. In addition, the company says it is seeking to grow particularly in tools (consumables relating to pre-processing machines) and in services covering the entire lifecycle of products.

Glaston recently implemented a series of measures that it says improved its financial position. As a result of these measures, the company says its financial base has been stabilized. The financial targets underlying Glaston’s strategy will run until 2016.

According to the company, its financial targets for the period are:
• Growth in net sales of more than 8 percent
• Operating profit margin (EBIT) over 6 percent
• Return on capital employed (ROCE) over 10 percent.

Previously, Glaston had reported net half-year sales totaling EUR 60.1 million (more than $80 million USD). The numbers were slightly higher than the previous year, thanks in part to a strong second quarter services segment fueled by sales in heat treatment machines that saw operating profits rise by 20 percent from a year ago, according to the company. Overall second-quarter net sales totaled 33.7 million EUR (more than 45 million USD).

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