A company restructuring last year, plus some price increases, allowed glass manufacturer Apogee Enterprises to offset the effects of inflation and report better than expected results for its fiscal fourth quarter.
Restructuring efforts help Minnesota's Apogee glass manufacturer fight inflation challenges
After adjusting for $28 million in restructuring costs, Apogee's adjusted EPS for the year was $2.48 a share.
April 7, 2022 at 8:45PM
The Bloomington-based architectural-glass manufacturer still recorded a net loss of $16.7 million, or 67 cents a share, for the quarter ended Feb 28. It reported a loss of $42.4 million, or $1.65 a share, during the same period last year.
"I am proud of what our team accomplished in fiscal 2022, achieving full-year revenue and adjusted earnings per share growth, while driving significant progress on our new strategy to position the company for long-term profitable growth," said Ty Silberhorn, Apogee's chief executive, in a news release.
Fourth-quarter revenue increased 6% to $328 million. Adjusted earnings per share was 91 cents, beating analysts' expectations of 72 cents.
Company officials told analysts on the earnings conference call they expect to continue battling inflationary effects. Markets for some raw materials, for example, will continue to be restrained.
However, they said they are confident they can enact more price increases in fiscal 2023 to offset higher costs.
Apogee said in August it would take about $30 million to $35 million in pre-tax charges as it shut down a Georgia plant and shifted its work to the company's Owatonna, Minn., facility. It also closed a Texas plant and exited the Velocity business, which made glass for commercial construction projects in the Dallas market.
Apogee said it has incurred $30.5 million of the charges to date and plans to complete the restructuring by February.
For the year, Apogee made $3.5 million, or 14 cents a share, down 76% from the previous fiscal year. Revenue was up 7% to $1.31 billion.
Apogee said it expects adjusted earnings per share to be between $2.90 and $3.30 for the full fiscal year ending in February.
Shares of Apogee closed at $45.11 a share on Thursday, down 2.9%. Over the last 52 weeks Apogee shares have traded between $33.88 and $50.45 a share.
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