Investors sent shares of Apogee Enterprises Inc. down more than 12 percent Thursday as they reacted to the company's disclosure late Wednesday that its third-quarter operating income was down 24 percent. Company officials, noting what they called "significant" third-quarter items, also lowered their 2008 guidance by 3 cents, to $1.40 to $1.50 a share.
News of write-down puts Apogee stock in a dive
Shares sank 12 percent after the company reported that third-quarter income was down 24 percent.
December 21, 2007 at 3:35AM
Apogee's stock sank $2.47 to close at $17.35, well off its 52-week high of $30.30.
Excluding a tax benefit and discontinued items, operating earnings were $11.7 million for the quarter, or 26 cents a share. Including the one-time items, net income grew 11 percent, to $10.99 million, or 38 cents a share.
The third quarter's problems included a $6.5 million write-down for three troublesome glass installation projects in Florida that saw poor execution, material cost increases and problems meeting deadlines. Another key issue affecting the quarter was the 11-cent-per-share charge associated with the sale of Apogee's 34 percent stake in the PPG Auto Glass joint venture, which lost $4 million during the quarter. The sale, to PPG Industries, will bring Apogee $25.5 million when it closes.
Apogee previously sold its Harmon Glass auto-glass retail operation in 2003 because of lackluster profit. Now it is turning its back on the entire auto segment to focus on the more profitable building- and picture-framing glass sectors.
During the quarter, Apogee also sold its windshield business for buses and recreational vehicles.
CEO Russell Huffer told analysts that fourth-quarter results are expected to make up for the third-quarter problems in building installations.
Dee DePass • 612-673-7725
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