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Nortek’s AVC Segment Shrinks Q1 Operating Loss

Providence, R.I. – Nortek’s audio, video and control solutions (AVC) segment shrank its first-quarter 2015 operating loss to $2.4 million from the year-ago $4.7 million loss, parent company Nortek reported.

The segment’s sales also shrank, this time by 9.5 percent to $32.5 million compared to the year-ago quarter. The decrease, however, “primarily reflected lower sales of professional video-signal management products” rather than electronics and home automation products sold to the residential market, the company noted.

“For our AV businesses,” the company said, “although sales were down in the quarter, our operating loss was reduced year-over-year, reflecting, in part, the restructuring and repositioning actions taken in the second half of 2014.”

The AVC segment mainly consists of residential audio/video equipment (including architectural speakers and power conditioners) and home-control equipment, but it also includes professional video signal-management solutions. Brands include Elan, Niles, SpeakerCraft, Panamax, Proficient, Xantech, TV One, and Gefen.

For AVC’s full fiscal 2014, sales were up 9.5 percent to $162.6 million, but full-year operating losses grew to $19.2 million from 2013’s operating loss of $12.9 million and a 2012 operating loss of $2.1 million.

For 2015’s first quarter, consolidated Nortek sales were up 4.5 percent to $572.7 million, although acquisitions contributed $53.1 million to net sales. Excluding acquisitions and foreign-exchange fluctuations, net sales dropped 3.4 percent.

The company’s consolidated net loss grew to $13.9 million in the first quarter from the year-ago loss of $8.6 million.

Nortek’s other business include commercial and industrial ventilation, residential and commercial HVAC, and security and control systems.