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Apogee Enterprises sees FY14 CapEx $40M-$45M

The company said, "Revenue expansion should largely come from geographic growth and new products, and our earnings should benefit from improvements in volume, mix, project margins and operating leverage. We are experiencing strong bidding activity for future architectural work, and margins on new orders are improving. The outlook for U.S. commercial construction markets in fiscal 2014, based on Apogee's lag to McGraw-Hill forecasts for the segments we serve, is for low single-digit market growth. We again anticipate outperforming market growth by several percentage points. We continue to expect that capital spending for fiscal 2014 will be in the range of $40 to $45 million as we invest for growth, productivity and product development capabilities, including for the new Architectural Glass coater. We expect to be free cash flow positive after this level of investments. They added that the fiscal 2014 gross margin is anticipated to be at least 22 percent. We believe that our strategies to grow through new geographies, new products and new markets will allow Apogee to reach $1 billion in revenues by the end of fiscal 2016. At the same time, we believe we can achieve 10 percent operating margin in this timeframe, in part through our focus on productivity and operational improvements."