Gibraltar Industries (ROCK) 8-K Gibraltar Reports Second-quarter Sales and Earnings

Exhibit 99.1

For Immediate Release
July 25, 2007

GIBRALTAR REPORTS SECOND-QUARTER SALES AND EARNINGS

Sales and Earnings Show Strong Sequential Improvement

     BUFFALO, NEW YORK (July 25, 2007) — Gibraltar Industries, Inc. (NASDAQ: ROCK) today reported its sales, net income, and earnings per share for the three and six months ended June 30, 2007. Gibraltar’s second-quarter results showed strong sequential improvement compared to the first quarter as the Company moved into its seasonally strongest period.

     Sales from continuing operations in the second quarter of 2007 were $370 million, an increase of approximately five percent compared to $352 million in the second quarter of 2006. The increase was largely the result of acquisitions. Sales from existing businesses declined by approximately seven percent, a result of lower activity levels in the residential housing and automotive markets. For the first six months of 2007, sales from continuing operations were up by approximately two percent to $687 million, compared to $675 million in the first half of 2006.

     Income from continuing operations before one-time charges was $13.6 million, or $.45 per share, in the second quarter of 2007, consistent with previous guidance, compared to $19.8 million, or $.66 per share, in the second quarter of 2006. Operating income from existing businesses was down 32 percent on a year-over-year basis, driven by lower margins in Gibraltar’s processed metals businesses and those building products businesses most closely aligned with residential housing activity, with acquisitions partially offsetting the decline. In the second quarter, the Company incurred a special charge of $1.5 million for an M&A transaction that was not successfully consummated and a $1.2 million restructuring charge related to the consolidation of its strip-steel facilities, for a total charge of $2.7 million, or $.05 per share, resulting in net income of $11.9 million, or $.40 per share.

     In the first half of 2007, income from continuing operations before one-time charges was $20.2 million, or $.67 per share, compared to $31.5 million, or $1.05 per share, in the first six months of 2006. After special charges, income from continuing operations was $18.1 million, or $.60 per share.

     “On a sequential basis, our sales and earnings were much stronger than our first-quarter results, and within our expectations. The steps we have taken to diversify and broaden our business portfolio — most notably our move into the commercial building and industrial markets, our international expansion, along with solid contributions from our recent acquisitions — helped our second-quarter performance,” said Brian J. Lipke, Gibraltar’s Chairman and Chief Executive Officer.

     “We continued to make progress during the second quarter in our efforts to cut and control costs. This has resulted in reduced inventories, streamlined operations (including six facility consolidations completed thus far in 2007, with two more scheduled before year end), and numerous operational improvements, all of which will continue to reduce overhead,” said Henning N. Kornbrekke, Gibraltar’s President and Chief Operating Officer.

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Gibraltar Reports Second-Quarter Sales and Earnings
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     “We continue to pursue our strategy to be the low-cost producer of our products on a global basis. We are also targeting acquisitions — such as Dramex (acquired on March 12) and Noll/NorWesCo (acquired on April 11) — that will add to our product leadership positions in niche markets, while enhancing our ability to deliver the higher performance characteristics we have established for our business. We are also continuing to review all of our businesses to ensure that they meet our performance targets,” said Mr. Lipke.

     “Even though it remains a challenging business climate for many of our operations, the new-build housing market for example was down 27 percent compared to the first six months of 2006, our sales in these markets are down far less, which indicates that we are gaining share. We believe our financial strength, broad product range, ability to manufacture and distribute products efficiently, and excellent customer service position us to strengthen our product leadership positions,” said Mr. Kornbrekke.

     In light of the operating environment discussed above, Mr. Kornbrekke said that, barring a significant change in business conditions, Gibraltar expects its third-quarter earnings per share from continuing operations before any one-time charges will be in the range of $.40 to $.45, compared to $.61 in the third quarter of 2006.

     Gibraltar Industries is a leading manufacturer, processor, and distributor of products for the building, industrial, and vehicular markets. The company serves customers in a variety of industries in all 50 states and throughout the world. It has approximately 3,600 employees and operates 83 facilities in 26 states, Canada, China, England, Germany, and Poland. Gibraltar’s common stock is a component of the S&P SmallCap 600 and the Russell 2000^® Index.

     Information contained in this release, other than historical information, should be considered forward-looking, and may be subject to a number of risk factors, including: general economic conditions; the impact of the availability and the effects of changing raw material prices on the Company’s results of operations; energy prices and usage; the ability to pass through cost increases to customers; changing demand for the Company’s products and services; risks associated with the integration of acquisitions; and changes in interest or tax rates.

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Gibraltar will review its second-quarter results and discuss its outlook for the third quarter during its quarterly conference call, which will be held at 9 a.m. Eastern Time on July 26. Details of the call can be found on Gibraltar’s Web site, athttp://www.gibraltar1.com.

CONTACT: Kenneth P. Houseknecht, Vice President of Communications and Investor Relations, at 716/826-6500,khouseknecht@gibraltar1.com.

Gibraltar’s news releases, along with comprehensive information about the Company, are available on the Internet, athttp://www.gibraltar1.com.

Gibraltar Reports Second-Quarter Sales and Earnings
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GIBRALTAR INDUSTRIES, INC.
Financial Highlights
(in thousands, except per share data)

	Three Months Ended
	June 30, 2007		June 30, 2006
Net Sales	$	369,820	$	352,421
Income from Continuing Operations	$	11,926	$	19,761
Income Per Share from Continuing Operations — Basic	$	.40	$	.67
Weighted Average Shares Outstanding — Basic		29,863		29,689
Income Per Share from Continuing Operations — Diluted	$	.40	$	.66
Weighted Average Shares Outstanding — Diluted		30,144		30,012

	Six Months Ended
	June 30, 2007		June 30, 2006
Net Sales	$	687,404	$	675,058
Income from Continuing Operations	$	18,094	$	31,494
Income Per Share from Continuing Operations — Basic	$	.61	$	1.06
Weighted Average Shares Outstanding — Basic		29,850		29,659
Income Per Share from Continuing Operations — Diluted	$	.60	$	1.05
Weighted Average Shares Outstanding — Diluted		30,096		29,966

GIBRALTAR INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)

	June 30		December 31,
	2007		2006
Assets
Current assets:
Cash and cash equivalents	$	22,921	$	13,475
Accounts receivable, net		212,714		169,207
Inventories		254,019		254,991
Other current assets		20,151		18,107
Total current assets		509,805		455,780
Property, plant and equipment, net		261,724		243,138
Goodwill		406,462		374,821
Acquired intangibles		61,150		62,366
Investments in partnerships		2,522		2,440
Other assets		14,691		14,323
	$	1,256,354	$	1,152,868
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	100,749	$	71,308
Accrued expenses		48,606		50,771
Current maturities of long-term debt		2,555		2,336
Total current liabilities		151,910		124,415
Long-term debt		449,689		398,217
Deferred income taxes		71,790		70,981
Other non-current liabilities		13,039		9,027
Shareholders’ equity:
Preferred stock, $.01 par value; authorized: 10,000,000 shares; none outstanding		—		—
Common stock, $.01 par value; authorized 50,000,000 shares; issued 29,883,795 shares in 2007 and 2006		299		299
Additional paid-in capital		217,291		215,944
Retained earnings		345,787		332,920
Accumulated other comprehensive income		6,549		1,065
		569,926		550,228
Less: cost of 44,100 and 42,600 common shares held in treasury in 2007 and 2006		—		—
Total shareholders’ equity		569,926		550,228
	$	1,256,354	$	1,152,868

GIBRALTAR INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2007			2006		2007			2006
Net sales	$	369,820		$	352,421	$	687,404		$	675,058
Cost of sales		304,146			275,156		570,079			534,562
Gross profit		65,674			77,265		117,325			140,496
Selling, general and administrative expense		38,281			38,950		73,491			76,790
Income from operations		27,393			38,315		43,834			63,706
Other (income) expense:
Equity in partnerships’ loss (income) and other income		(305	)		138		(667	)		(548	)
Interest expense		8,248			7,101		15,485			13,880
Total other expense		7,943			7,239		14,818			13,332
Income before taxes		19,450			31,076		29,016			50,374
Provision for income taxes		7,524			11,315		10,922			18,880
Income from continuing operations		11,926			19,761		18,094			31,494
Discontinued operations:
Income from discontinued operations before taxes		—			5,710		—			10,013
Income tax expense		—			2,158		—			3,797
Income from discontinued operations		—			3,552		—			6,216
Net income	$	11,926		$	23,313	$	18,094		$	37,710
Net income per share — Basic:
Income from continuing operations		.40			.67		.61			1.06
Income from discontinued operations	$	—		$	.12	$	—		$	.21
Net income	$	.40		$	.79	$	.61		$	1.27
Weighted average shares outstanding — Basic		29,863			29,689		29,850			29,659
Net income per share — Diluted:
Income from continuing operations		.40			.66		.60			1.05
Income from discontinued operations		—			.12		—			.21
Net income	$	.40		$	.78	$	.60		$	1.26
Weighted average shares outstanding — Diluted		30,144			30,012		30,096			29,966

GIBRALTAR INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)

	Six Months Ended
	June 30,
	2007			2006
Cash flows from operating activities
Net income	$	18,094		$	37,710
Net income from discontinued operations		—			6,216
Net income from continuing operations		18,094			31,494
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		15,982			14,175
Provision for deferred income taxes		(229	)		—
Equity in partnerships’ loss (income) and other income		(576	)		174
Distributions from partnerships		493			589
Stock compensation expense		1,254			1,631
Other noncash adjustments		525			610
Increase (decrease) in cash resulting from changes in (net of acquisitions and dispositions):
Accounts receivable		(31,273	)		(49,345	)
Inventories		26,724			(37,793	)
Other current assets and other assets		1,775			1,353
Accounts payable		24,600			23,698
Accrued expenses and other non-current liabilities		(2,915	)		342
Net cash used in continuing operations		54,454			(13,072	)
Net cash provided by discontinued operations		—			7,220
Net cash (used in) provided by operating activities		54,454			(5,852	)
Cash flows from investing activities
Acquisitions, net of cash acquired		(84,022	)		(13,206	)
Purchases of property, plant and equipment		(9,292	)		(11,452	)
Net proceeds from sale of property and equipment		373			115
Net proceeds from sale of business		—			151,511
Net cash provided by investing activities from continuing operations		(92,941	)		126,968
Net cash used in investing activities for discontinued operations		—			(3,189	)
Net cash provided by investing activities		(92,941	)		123,779
Cash flows from financing activities
Long-term debt reduction		(1,654	)		(112,960	)
Proceeds from long-term debt		52,485			10,000
Payment of deferred financing costs		(8	)		(256	)
Payment of dividends		(2,984	)		(2,974	)
Net proceeds from issuance of common stock		94			764
Tax benefit from stock options		—			115
Net cash used in financing activities		47,933			(105,311	)
Net increase (decrease) in cash and cash equivalents		9,446			12,616
Cash and cash equivalents at beginning of year		13,475			28,529
Cash and cash equivalents at end of period	$	22,921		$	41,145

GIBRALTAR INDUSTRIES, INC.
Segment Information
(in thousands)

	Three Months Ended June 30,
							Increase (Decrease)
	2007			2006			$			%
	(unaudited)			(unaudited)
Net Sales
Building products	$	260,224		$	239,056		$	21,168			8.9	%
Processed metal products		109,596			113,365			(3,769	)		(3.3	%)
Total Sales		369,820			352,421			17,399			4.9	%
Income from Continuing Operations
Building products	$	31,219		$	40,519		$	(9,300	)		(23.0	%)
Processed metal products		3,609			7,945			(4,336	)		(54.6	%)
Corporate		(7,435	)		(10,149	)		2,714			(26.7	%)
Total Operating Income		27,393			38,315			(10,922	)		(28.5	%)
Operating Margin
Building products		12.0	%		16.9	%
Processed metal products		3.3	%		7.0	%

	Six Months Ended June 30,
							Increase (Decrease)
	2007			2006			$			%
	(unaudited)			(unaudited)
Net Sales
Building products	$	467,450		$	453,800		$	13,650			3.0	%
Processed metal products		219,954			221,258			(1,304	)		(0.6	%)
Total Sales		687,404			675,058			12,346			1.8	%
Income from Continuing Operations
Building products	$	49,949		$	71,792		$	(21,843	)		(30.4	%)
Processed metal products		8,037			13,763			(5,726	)		(41.6	%)
Corporate		(14,152	)		(21,849	)		7,697			(35.2	%)
Total Operating Income		43,834			63,706			(19,872	)		(31.2	%)
Operating Margin
Building products		10.7	%		15.8	%
Processed metal products		3.7	%		6.2	%