Providence, R.I. – Nortek began to break out the financial performance of its residential A/V segment in the second quarter, when segment sales fell 16.1 percent from the previous year and the segment’s operating loss widened.
Companywide sales, which include everything from commercial and residential HVAC to security, rose 14 percent, but the company posted a net loss compared to a year-ago net profit.
Nortek began breaking out the segment’s sales from the other entities in the technology solutions segment because of a decision to operate and manage each entity separately, the company said.
The A/V segments include whole-house audio/video products, home automation systems and select accessories used with these systems, including power conditioners and surge protectors. Whole-house audio/video products include multi-room/multi-source controllers and amplifiers, architectural speakers, and control devices such as keypads, remote controls and volume controls, the company said. Home automation systems include software and hardware to facilitate the control of third-party residential subsystems such as home theater, whole-house audio, climate control, lighting, security and irrigation, the company noted.
In the quarter, A/V segment sales fell 16.1 percent to $37 million, and first-half segment sales also fell 16.1 percent to $72.9 million, respectively. The segment’s operating loss grew to $8.1 million in the quarter from the year-ago $4.1 million loss, and the segment’s first-half operating loss grew to $12.8 million from a year-ago $6.1 million.
Companywide sales grew 14 percent to $718.6 million in the quarter and grew 10.1 percent in the half to $1.27 billion. The companywide net loss hit $46.2 million compared to a year-ago net profit of $11.5 million. The first-half net loss grew to $54.8 million from a year-ago $3.6 million.
For fiscal 2013, companywide net sales increased 3.9 percent to $2.29 billion, operating earnings fell 31 percent to $87.9 million, and the company posted a net loss of $8.3 million compared with 2012 net earnings of $9.5 million.