Glass products maker Apogee Enterprises Inc. (APOG), Wednesday said its second-quarter profit increased from the same quarter a year ago, primarily helped by an improvement in operating margin, as well as favorable resolution of an outstanding claim. Quarterly revenues dropped from year ago, however, came in ahead of Street estimates.
The Minneapolis, Minnesota-based company's quarterly net income improved to $13.02 million or $0.47 per share from $12.22 million or $0.43 per share in the same quarter a year ago.
On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.24 per share for the second quarter. Analysts' estimate typically exclude special items.
Operating income for the second quarter dropped 5% to $17.866 million from $18.797 million in the same quarter a year ago, while operating margin increased to 9.5% from 7.7% in the same quarter last year.
Earnings from continuing operations for the second quarter increased 3% to $12.689 million and 7% to $0.46 per share from $12.291 million or $0.44 per share in the same quarter a year ago. Quarterly results also included earnings of $0.01 per share from discontinued operation that resulted from favorable resolution of an outstanding claim.
Net sales for the second quarter dropped 23% to $187.44 million from $244.97 million in the same quarter last year, however, was above Street estimate of $186.29 million. The decline in quarterly net sales was primarily due to a 25% decline in architectural sales as well as a 3% drop in sales of large scale optical.
For the six-months period, net earnings dropped 8% to $20.544 million or 6% to $0.75 per share from $22.419 million or $0.80 per share in the same quarter a year ago.
Revenues for the period dropped 24% to $368.292 million from $483.439 million in the same quarter last year, due primarily to a decline in commercial construction market ,continually impacted by tight commercial real estate credit as well as a drop in employment levels.
Looking forward to the fiscal year 2010, Russell Huffer, chairman and chief executive officer, Apogee Enterprises said, "For fiscal 2010, we continue to expect a mid-single digit operating margin on revenues that we anticipate will be down 20 to 25 percent as project timing for new orders has shifted into fiscal 2011. We had previously anticipated fiscal 2010 revenues would decline at least 15 percent." He added that the large-scale optical segment is expected to continue converting customers to higher value-added products.
The Street currently expects earnings of $0.89 per share for the fiscal year 2010.
APOG closed Wednesday's trading at $14.80, up $0.52 or 3.64%, on a volume of 0.256 million shares on the Nasdaq.
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