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Nortek: Residential A/V Performance Improved In Q3

Third-quarter sales in Nortek’s AVC (audio/video and control solutions) segment fell 36.8 percent to $30.1 million, primarily driven by lower sales of commercial A/V products, Nortek said.

However, AVC’s “residential A/V performance continued to improve year over year,” Nortek said without elaboration.

Commercial sales were off because Nortek sold off the TV One professional and broadcast video business and because Gefen is exiting select product lines, which target the commercial and prosumer markets.

Nortek didn’t disclose the residential-A/V sales.

AVC’s adjusted operating loss shrank 26.8 percent to $3 million from the year-ago $4.1 million,” reflecting the progress made in restructuring the residential business,” Nortek said.

The segment’s first-half operating loss fell to $6.5 million from $12.8 million.

The segment’s residential brands include BlueBold, Elan, Emphasys, Furman, Gefen, Niles, Panamax, Proficient, SpeakerCraft, Sunfire and Xantech.

In Nortek’s SCS (security and control solutions) segment, sales fell 9.7 percent to $94.1 million, and operating earnings fell 42.5 percent to $7.7 million. Sales fell because of lower volumes with certain OEM customers, Nortek said.

SCS offers the Linear brand of security, access control, video surveillance equipment, and intercoms as well as professionally monitored 2GIG home-security systems. SCS recently expanded its selection of GoControl-brand wireless home-automation products from a handful to almost 20 models.

Nortek’s other business include commercial and industrial ventilation and residential and commercial HVAC.

On a consolidated basis, Nortel’s net sales fell 3.7 percent to $618.5 million, and operating earnings shrank to $14.9 million from $33.4 million. The consolidated net loss of $14.4 million contrasts with a year-ago net profit of $4.6 million.

The company posted a consolidated first-half net loss of $16.2 million, down from the year-ago $54.8 million.