Apogee grows sales, profits in 2nd quarter, but stock slips

  • Article by: DEE DEPASS , Star Tribune
  • Updated: September 19, 2013 - 9:09 PM

The maker of building glass expects strong annual growth.

Building-glass maker Apogee Enterprises Inc. saw its sales and profits grow in the second quarter, but the results slightly missed analysts’ expectations for the quarter.

Apogee’s stock closed down a little more than 1 percent Thursday despite the fact that it also beefed up its forecast for the full year.

Bloomington-based Apogee, which manufactures exterior glass and has produced it for architectural icons such as the Xcel Energy Center, World Trade Center buildings and the Taipei 101 skyscraper in Taiwan, saw its revenue grow 1 percent to $178.3 million and earnings rise 21 percent to $6.1 million or 21 cents a share.

On average, Wall Street analysts had expected 23 cents a share and revenue of $187 million for the quarter.

Apogee shares fell 40 cents, or 1.35 percent, to close at $29.10.

Apogee’s architectural glass business saw sales rise 11 percent during the quarter, signaling that commercial construction doldrums may have ebbed at last.

Still, revenue from the company’s smaller divisions for architectural services and art-framing glass fell 10 percent and 5 percent during the quarter, respectively.

The optical glass division saw sales rise 1 percent.

Apogee CEO Joseph Puishys told analysts during a conference call Thursday morning that he was pleased with the quarter and that Apogee was experiencing “strong bidding activity for future architectural work.”

He added: “We continue to expect strong top-and-bottom line growth in fiscal 2014 through our growth strategies and productivity initiatives. We have raised the bottom end of our earnings per share range and now expect to earn 93 cents to $1 per share.”

The prior forecast had called for earnings of 90 cents to $1 per share.

Puishys said he expects 2014 revenue to grow “in the high single digits.”

The company is expanding its window manufacturing plant in Owatonna, Minn.

The $30 million expansion will include the addition of new processing machines that cut costs and boost efficiencies, officials said.

Dee DePass • 612-673-7725

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