Apogee Hardens Under Pressure

Apogee Enterprises (APOG - Analyst Report), through its subsidiaries, is a leader in technologies for the design and development of value-added glass products, services, and systems.

For the 4th quarter of FY09, Apogee forecasts a decline in revenues and EPS compared to the prior year, as it experiences the first full quarterly impact of the commercial construction slowdown. Also, the company's backlog came under pressure partially due to project delays and cancellations.

To manage through the downturn in the commercial construction, Apogee has implemented a number of cost-cutting initiatives and is evaluating further actions such as a reduction in headcount and discretionary spending, as well as productivity improvements.

Management is confident that the company will get through the downturn successfully with its focus on market share gains and value-added products. We rate shares of APOG a Hold.

Read the full analyst report on APOG