Providence, R.I. –
Nortek, parent of multiple residential and commercial system suppliers,
returned to profitability in its second quarter but still posted a net loss in
its first half.
For the
second quarter, ended July 3, sales rose 4.3 percent from the year-ago period
to $509 million, with first-half sales rising 1.4 percent to $940 million.
Net earnings for the quarter hit $300,000
compared with a year-ago net loss of $245.4 million. For the half, the company
posted a net loss of $13.1 million compared with a year-ago net loss of $278.1
million.
Operating
earnings, on the other hand, hit $27.1 million in the quarter compared with a
year-ago loss of $215.7 million. Operating earnings for the half hit $31.3
million compared with a year-ago operating loss of $201.1 million.
The company
didn’t break out sales and profits by residential or commercial use.
“Sales of
products geared toward the residential new construction, remodeling and
replacement markets drove increased revenue for the quarter,” said chairman/CEO
Richard Bready. “Nortek’s solid financial performance for the period also
reflects the Company’s dedicated focus on working capital and cost-reduction
initiatives.”
For the second half, Bready said, “Although
there are some recent positive signs in new home sales, we expect the
residential housing markets will be somewhat weaker in the second half of 2010
due to expirations of tax initiatives, the impact of continued high
unemployment levels, low consumer confidence and continued high levels of
foreclosures.” He also said conditions in the commercial construction market “are
beginning to show signs of life, and banks appear to be more willing to make
financing available.” Nonetheless, he said, “there will be no significant
impact on Nortek’s [commercial] business until 2011.”
Late last
year, a U.S. Bankruptcy Court approved Nortek’s
, eliminating about $1.3
billion out of a total $2.05 billion in debt.
Nortek’s
brands market residential and commercial ventilation and HVAC systems as well
as residential technology, convenience and security products. The company’s
residential brands include Niles Audio, Xantech Elan Home Systems, Gefen, Omnimount, Panamax, SpeakerCraft and
others.
