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Apogee Enterprises falls after guidance trimmed

Apogee Enterprises Inc. shares fell Thursday after the glass product maker cut its fiscal full-year earnings outlook for 2009 because of weakening commercial construction markets.
/ Source: The Associated Press

Apogee Enterprises Inc. shares fell Thursday after the glass product maker cut its fiscal full-year earnings outlook for 2009 because of weakening commercial construction markets.

Shares fell $1.83, or 9.7 percent, to $17.12 in morning trading.

The Minneapolis-based company said it expects earnings from continuing operations for the 12 months ending in February 2009 of $1.65 to $1.82 per share, compared to prior guidance of $1.82 to $1.94 per share.

Analysts polled by Thomson Reuters expect, on average, $1.81 per share.

"In recent weeks, we've seen rapid changes in commercial construction markets, and are expecting our full-year earnings to be impacted by reduced volume due to project delays and a small number of cancellations, as well as the internal operational challenges in our architectural glass fabrication business that affected us in the second quarter," Chief Executive Russell Huffer said in a statement.

Besides reducing its guidance, Apogee reported fiscal second-quarter profit rising 6.5 percent, beating analysts estimates, as higher revenue from its architectural segment offset a weaker picture framing business.

For the three months ended Aug. 30, profit rose to $12.2 million, or 43 cents per share, compared with $11.5 million, or 40 cents per share, in the year-earlier period. Analysts expected 41 cents per share.

Revenue climbed 13 percent to $245 million from $217.7 million. Analysts expected revenue of $242 million.

"Architectural segment revenue growth continued in the second quarter, and operating performance was strong in all segment businesses except architectural glass, where internal operational challenges impacted us throughout the quarter," Huffer said.

"Our large-scale optical segment turned in a strong operating margin performance, while revenues were negatively impacted primarily by the elimination of less-profitable product lines and somewhat by soft picture framing market conditions."