Providence,
R.I. –
, the parent of multiple
residential- and commercial-system suppliers, posted its second consecutive
quarterly net profit in its fiscal third quarter and cited strength in its
residential markets for a quarterly sales gain of almost 10 percent.
Companywide
sales grew by 9.9 percent to $496.6 million in the quarter ending Oct. 2,
compared with the year-ago period, and by 4.2 percent for the nine-month period
to $1.44 billion.
Third-quarter net earnings hit
$9.8 million compared with a year-ago loss of $12.4 million, although for the
nine-month period, the company posted a net loss of $3.3 million because of a first-quarter
$13.4 million loss. The $3.3 million net loss, however, paled in comparison to
the year-ago loss of $290.5 million.
Operating
profits hit $26.7 million in the third quarter, down slightly from a year-ago
$27.7 million, but operating earnings rose to $58 million for the nine-month
period compared with a year-ago loss of $173.4 million. The company posted
operating profits in its first and second quarters as well.
Despite “the economic challenges
that continue to impact the majority of the markets we serve,” said
chairman/CEO Richard Bready, “we are encouraged by sales of products geared
toward the residential new construction, remodeling and replacement markets,
which drove increased revenue for the quarter.” Nortek’s “solid financial performance” in 2010 “also reflects the
company’s ongoing, dedicated focus on working capital and cost-reduction
initiatives,” he added.
“Although there are some recent positive signs
in new and existing home sales, we expect the residential housing markets will
remain weak into 2011 due to expirations of tax initiatives, the impact of
continued high unemployment levels, low consumer confidence and continued high
levels of foreclosures,” bready continued in a prepared statement. “Conditions
in the non-residential construction market remain challenged but are beginning
to show signs of life, and banks appear to be more willing to make financing
available. However, we expect that there will be no significant impact on Nortek’s business until 2011.”
Nortek’s residential brands include Niles
Audio, Xantech, Elan, Gefen, Omnimount, Panamax, SpeakerCraft and others.
