AFG Industries Net Jumps in 1st Quarter : Irvine-Based Glassmaker Announces 4-Cent Quarterly Dividend

AFG Industries, the Irvine-based glassmaker, posted record net income of $5.9 million for the first quarter a 41% increase from $4.2 million last year and the company’s seventh consecutive year of increased earnings. AFG officials also announced Monday that the company will begin a regular quarterly cash dividend of four cents per share of common stock.

First-quarter revenues were $85 million, up 20% from $71 million last year. Interest on investments accounted for $2 million of the company’s revenue in the quarter, contrasted with $190,000 in the year-ago period.

AFG, which has maintained its corporate headquarters in Irvine since October, 1984, was forged out of two nearly bankrupt glass companies seven years ago by R.D. Hubbard, then a Tennessee-based glass company executive.

Since then, the company has become the nation’s fourth-largest manufacturer of flat glass, which is used mainly in residential and commercial construction.

The company also carved out a healthy piece of the specialty glass market, which accounts for more than 50% of AFG’s sales.

‘Enhanced’ Revenue Expected

Additionally, AFG is the leading supplier of solar glass and glass used for aquariums, appliances, and non-glare picture frames. The bulk of the company’s manufacturing is done at plants in Tennessee and New Jersey.

In a prepared statement released in conjunction with the company’s annual meeting Monday, Hubbard said the acquisition of distribution company servicing the Midwest and Southwest would “enhance” revenues throughout the fiscal year.

Both Hubbard and Gary Miller, AFG’s chief financial officer, cited reduced natural gas costs as contributing factors to the company’s increased profits. Natural gas is a large part of glass production costs.

Miller, in an interview Monday, said “all phases of our business are up at this time.” In explaining the decision to award the cash dividend, Miller said the company’s cash flow was “strong enough to support the continued growth of the company as well as the dividend.”

Expanded Capacity

Miller said that before offering the dividend, payable July 14 to stockholders of record on June 30, the company used its profits to “expand capacity and improve the company’s financial strength.”

With slightly more than 14.5 million shares outstanding, the quarterly cash dividend will cost AFG $580,029.

In a board of directors meeting following the shareholder’s meeting , AFG officers elected John McKay, former Tampa Bay Buccaneers head coach and president, to the company’s board. Hubbard said McKay, 62, would contribute “strong leadership and motivational skills” to the company.