Apogee Announces Architectural Glass Restructuring
January 05 2018 - 9:20AM
Business Wire
- Investments, productivity
improvements enable Utah plant closure
- Restructuring charges reflected in
previous fiscal 2018 outlook
Apogee Enterprises, Inc. (Nasdaq:APOG), which provides
distinctive solutions for enclosing commercial buildings and
framing art, today announced details of the planned restructuring
referenced in its December 21, 2017, third-quarter earnings
release.
“As part of our initiatives to diversify and strengthen our
business for more stable performance in any economic cycle, Apogee
is making significant investments in our Viracon architectural
glass business for new capabilities, automation and improved
productivity that are yielding increased capacity. It is now
apparent that we no longer require the capacity from our smallest
domestic architectural glass plant in St. George, UT, and we will
be closing that facility in March,” said Joseph F. Puishys, Apogee
chief executive officer. “With the capacity gains we’ve made
through capability and productivity investments over the past five
years, we will continue to have adequate glass capacity to meet
peak commercial construction market demand in upcoming years.”
In the fiscal 2018 fourth quarter, Apogee is taking a
restructuring charge of approximately $4.5 million, or $0.11 per
share, primarily related to the plant closure. This charge was
reflected in Apogee’s current fiscal 2018 outlook provided in
December 2017. The payback is expected to be approximately one
year.
“Our architectural glass business will benefit from reduced
costs in fiscal 2019 and beyond, as it continues to deliver very
high levels of customer service with 6-8 week lead times,” said
Puishys.
“This decision is not a reflection on the performance of the
Viracon-St. George facility and its employees,” said Viracon
President Kelly Schuller. “Our human resources team will be working
closely with our employees to help them find new opportunities.”
Apogee’s Viracon architectural glass business employs about 200
people in St. George, with the remainder of its 2,300 employees at
its Owatonna, MN, Statesboro, GA and Nazaré Paulista, Brazil
facilities, which are continuing to operate.
ABOUT APOGEE ENTERPRISES
Apogee Enterprises, Inc., headquartered in Minneapolis, is a
leader in the design and development of value-added glass and metal
products and services for enclosing commercial buildings, and
value-added glass and acrylic for picture framing and displays. The
company is organized in four segments, with three of the segments
serving the commercial construction market:
- Architectural Framing Systems segment
businesses design, engineer, fabricate and finish the aluminum
frames for window, curtainwall and storefront systems that comprise
the outside skin of buildings. Businesses in this segment are:
Wausau, a manufacturer of custom aluminum window systems and
curtainwall; Sotawall, a manufacturer of unitized curtainwall
systems; EFCO, a manufacturer of aluminum window, curtainwall,
storefront and entrance systems; Tubelite, a manufacturer of
aluminum storefront, entrance and curtainwall products; Alumicor, a
manufacturer of aluminum storefront, entrance, curtainwall and
window products for Canadian markets; and Linetec, a paint and
anodizing finisher of window frames and PVC shutters.
- Architectural Glass segment consists of
Viracon, a leading fabricator of coated, high-performance
architectural glass for global markets.
- Architectural Services segment consists
of Harmon, one of the largest U.S. full-service building glass
installation companies.
- Large-Scale Optical segment consists of
Tru Vue, a value-added glass and acrylic manufacturer primarily for
framing and display applications.
FORWARD-LOOKING STATEMENTS
The discussion above contains “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements reflect Apogee management’s expectations
or beliefs as of the date of this release. The company undertakes
no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. All forward-looking statements are qualified by
factors that may affect the operating results of the company,
including the following: (A) global economic conditions and the
cyclical nature of the North American and Latin American commercial
construction industries, which impact our three architectural
segments, and consumer confidence and the conditions of the U.S.
economy, which impact our large-scale optical segment; (B)
fluctuations in foreign currency exchange rates; (C) actions of new
and existing competitors; (D) ability to effectively utilize and
increase production capacity; (E) product performance,
reliability and quality issues; (F) project management and
installation issues that could result in losses on individual
contracts; (G) changes in consumer and customer preference, or
architectural trends and building codes; (H) dependence on a
relatively small number of customers in certain business segments;
(I) revenue and operating results that could differ from market
expectations; (J) self-insurance risk related to a material product
liability or other event for which the company is liable; (K)
dependence on information technology systems and information
security threats; (L) cost of compliance with and changes in
environmental regulations; (M) interruptions in glass supply; (N)
loss of key personnel and inability to source sufficient labor; and
(O) integration of recent acquisitions. The company cautions
investors that actual future results could differ materially from
those described in the forward-looking statements, and that other
factors may in the future prove to be important in affecting the
company’s results of operations. New factors emerge from time to
time and it is not possible for management to predict all such
factors, nor can it assess the impact of each factor on the
business or the extent to which any factor, or a combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statements. For a more detailed
explanation of the foregoing and other risks and uncertainties, see
Item 1A of the company’s Annual Report on Form 10-K for the fiscal
year ended March 4, 2017.
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version on businesswire.com: http://www.businesswire.com/news/home/20180105005398/en/
Apogee Enterprises, Inc.Mary Ann Jackson, 952-487-7538Investor
Relationsmjackson@apog.com
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