Business
Apogee Enterprises Announces Restructuring and Cost Reduction Actions
Actions are beginning steps in executing the company’s new enterprise strategy These moves will strengthen customer focus, simplify operations, improve
About this update from Apogee Enterprises, Inc.
[{"type":"text","content":"\n\nActions are beginning steps in executing the company’s new enterprise strategy\n\n\nThese moves will strengthen customer focus, simplify operations, improve execution, and enable a more competitive cost structure\n\n\n MINNEAPOLIS--(BUSINESS WIRE)--\nApogee Enterprises, Inc. (Nasdaq: APOG) today announced plans to realign and simplify its business structure, bring a stronger focus to serving customers, enable a more competitive cost model, and better position the company for future growth and improved profitability. These actions are the initial steps in executing the company’s new enterprise strategy, which include:\n\n\nFocusing the Architectural Glass segment to emphasize premium, high-performance products. As a result, the company will close the Viracon facility in Statesboro, Georgia. Work currently performed in Statesboro will be transitioned to the company’s facility in Owatonna, Minnesota, which has adequate capacity to support the additional activity. The company will also exit the Velocity business and close its facility in Dallas, Texas.\n\n\nAlign Architectural Framing Systems (AFS) into two business units, to increase focus on target markets, better serve customers, improve operational execution, and reduce overall costs:\n\n\nStorefront and Finishing Solutions, will offer storefront, entrance, and stick curtainwall solutions, along with coating and related services for architectural products. Primary brands will include Alumicor, Linetec, and Tubelite.\n\n\nWindow and Wall Systems, will provide window and wall solutions targeting mid-size to large architectural projects. This business will sell under the EFCO and Wausau Window & Wall brands.\n\n\n\n\nMoving the Sotawall business, which is currently a part of AFS, into the Architectural Services segment. This will unify Apogee’s market offerings for larger, custom façade projects. The combined business will primarily focus on the integrated design, manufacture, and installation of curtainwall projects. This transition is expected to be completed in the first quarter of fiscal year 2023. Until that time, Sotawall will continue to report its financial results as a part of AFS.\n\n\n“Through our enterprise strategy work, we are developing a roadmap for Apogee to become the economic leader in our target markets, bringing the best value to our customers,” said Ty R. ...