Volume 49, Issue 2 - February 2014

FinancialFlash

PPG Reports Record Results in Fourth Quarter
Glass segment net sales reached $264 million for PPG Industries in the fourth quarter of 2013, up $23 million from the same period of the previous year. Additionally, the glass segment saw earnings of $22 million for the quarter, an increase of $14 million versus the prior-year quarter. The company also reported that flat glass pricing increased for the quarter along with commercial construction-related demand.

Overall, the company reported fourth-quarter net sales of $3.7 billion, up 14 percent from 2012. Full-year 2013 net sales totaled $15.1 billion, up 12 percent.

“Our record fourth-quarter financial performance caps off one of the most successful years in the company’s history, both financially and strategically,” says Charles E. Bunch, chairman and CEO. “With the 45 percent increase in earnings per share versus last year, we have now delivered 14 consecutive quarters of record adjusted earnings, illustrating the benefits of our strong coatings portfolio, broad global footprint, prudent cash deployment and measurable results from our strategic actions.”

Quanex Building Products Sees Net Loss in Fourth Quarter
Quanex Building Products’ fourth-quarter financial results included a $1.2 million net loss, compared with a net income of $1.0 million for the same period in 2012. Yet the company saw a 17-percent increase in its net sales from $235 million to $275 million, when compared with the fourth quarter of 2012.

The Engineered Products Group (EPG), which includes Edgetech IG, reported fourth-quarter 2013 net sales of $167 million, an increase of 22 percent (10 percent excluding Aluminite’s sales), compared to $136 million in the fourth quarter of 2012. Fourth-quarter 2013 operating income was $18 million compared to $14 million in the fourth quarter of 2012. The EPG’s fourth-quarter 2013 EBITDA was $26 million compared to $21 million in the fourth quarter of 2012.

Apogee Reports Operating Income Increase; Revenues Up 5 Percent
Minneapolis-based Apogee Enterprises reported an 11-percent increase in its operating income for the fiscal-2014 third quarter, totaling $12.7 million. The company’s revenues were up 5 percent to $199.4 million for the quarter. Apogee CEO Joseph Puishys attributes the increase in operating income to “improved mix and productivity in the architectural glass segment, and increasing margins and good project execution in the architectural services segment.”

The architectural glass segment’s revenues were down 2 percent to $73.4 million, “due to project timing,” according to the report. Operating income for the architectural glass segment was $1.6 million, up from $0.5 million. Operating margin was 2.2 percent, compared to 0.6 percent.

The company’s architectural framing segment reported revenues of $59.0 million, up 14 percent, with approximately half of the growth from the inclusion of the Alumicor acquisition and the balance driven by the U.S. storefront business. Operating income was $5.8 million, up from $5.6 million due to good volume in the U.S. storefront business, somewhat offset by volume declines in the window business and integration costs in the segment, according to the report.

The architectural services segment, reported revenues of $51.2 million, up 4 percent, and operating income of $0.4 million, improved from an operating loss of $0.2 million.


USG
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