Apogee Wausau Group, Inc., a unit of leading glass products
Apogee Enterprises Inc.
), has purchased the assets of Benchmark Sales Agency, Inc.,
operating as Custom Window Company, Inc. Terms of the deal were
Englewood, Colo.-based Custom Window makes historically
accurate, aluminum window products that represent annual sales of
roughly $10 million. Its products include projected windows for
the competitive K-12 school market and low-rise office
applications, self-balancing double-hung windows and historically
accurate window systems.
The acquisition is expected to broaden Apogee Wausau's
(operating as Wausau Window and Wall Systems) product range and
geographic footprint in the U.S. The acquisition is in sync with
Apogee's strategy to expand its architectural framing systems
segment through geographic expansion, new products and domestic
acquisition. The Custom Window takeover will enable the company
to better serve its customers in the Western U.S. and the
historical renovation market nationwide.
Apogee is a leader in technologies for the design and
development of value-added glass products, services and systems.
The company reported its first-quarter fiscal 2014 (ended Jun 1,
2013) results on Jun 25.
Earnings of 14 cents per share for the quarter more than
doubled from 6 cents per share earned a year ago. However, it
trailed the Zacks Consensus Estimate of 17 cents. Revenues rose
16% year over year to $179.3 million in the quarter, beating the
Zacks Consensus Estimate of $174 million. The improvement was
driven by growth across the board, especially Architectural Glass
and Architectural Services segments.
Geographic growth in the domestic markets and introduction of
new products are expected to contribute to revenue growth in
fiscal 2014. Moreover, improvements in volume, mix, project
margins and operating leverage will drive earnings.
Apogee's backlog remains strong, which bodes well for its
future performance. Focus on operational improvements, expansion
in new geographies and markets, and new product launches will
fuel Apogee's revenue growth going forward. The U.S. construction
is finally stabilizing and is on the road to the much-awaited
recovery, which looks promising for the company.
However, macroeconomic conditions may continue to be a
headwind for Apogee. Moderating global economic growth and
economic uncertainty can limit its near-term revenue
Apogee currently has a Zacks Rank #4 (Sell).
Other companies in the industrial products space with
favorable Zacks Rank are
Northwest Pipe Co.
). All of them hold a Zacks Rank #1 (Strong Buy).
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