AFG Reports Record Earnings from Operations

An increase in the new housing and remodeling markets for glass products helped Irvine-based AFG Industries Inc. report Thursday a fifth consecutive year of record sales and earnings from operations.

The company also revealed plans to build its first plant west of the Mississippi River in Victorville to penetrate the West Coast market.

For the year ended Dec. 31, the glass maker posted net income of $21.1 million, a 16.5% increase over the previous year’s income from operations of $18.1 million. Extraordinary income from prepayment of debt brought last year’s net to $23.5 million. Revenues for the year hit $324.4 million, a 14.4% increase over the previous year’s sales of $283.6 million.

In the fourth quarter, ended Dec. 31, AFG posted net income of $6.4 million, a 22.9% increase over operating income of $5.2 million. Extraordinary income brought the previous period’s net to $7.7 million. Sales for the quarter were $89 million, a 16.8% increase over the previous year’s quarterly revenues of $76.2 million.

“The steady growth of the remodeling market, housing formations and domestic vehicle production, as well as declining interest rates, contributed to a 5% increase in total flat glass shipments . . . and current indications point to another record year in 1986,” said R.D. Hubbard, AFG chairman.

Gary G. Miller, company treasurer, said the company’s primary market, new housing and remodeling, is expected to remain strong through 1990. The company also sells value-added, fabricated glass products, such as solar, insulated, safety-tempered, ornamental and lighting glass.

AFG, which moved its corporate headquarters in October, 1984, to Irvine from Kingsport, Tenn., has sold most of its glass products in the eastern half of the country and overseas, Miller said.

But it has acquired an option to buy 82 acres in Victorville to build a float process glass manufacturing plant that will help it penetrate the West Coast market for clear glass products. Hubbard said he expects the plant to be completed and production to begin during the second quarter of 1987.

AFG also has plants in Greenland, Tenn., Bridgeport, W. Va., and Cinnaminson, N.J.