Nortek narrows loss in 2015

PROVIDENCE – Nortek Inc. reported a 0.8 percent decline in revenue and narrowed its loss by 41.4 percent for 2015.
Revenue decreased to $2.53 billion from $2.55 billion a year ago. A loss of $26.7 million, or $1.67 per diluted share, was recorded, compared with a loss of $45.6 million, or $2.92 per diluted share, the previous year.
President and CEO Michael J. Clarke said in a statement that 2015 was an “important year of transition for Nortek and marks the conclusion of a multi-year restructuring and transformation period.”
“With the right people and processes in place and restructuring costs largely behind us, we believe the business is positioned for growth and improved profitability in 2016,” he said.
On the year, the company generated $49.1 million in cash from operating activities, an improvement on the 2014 total of $37.6 million but short of 2013’s $135.2 million.
For the fourth quarter, the company reported profit of $3.9 million, or 24 cents per diluted share, compared with $4.6 million, or 29 cents per diluted share, in the fourth quarter of 2014. Revenue decreased 0.9 percent, to $631 million from $636.8 million a year ago.
Clarke said sales growth was strong in the air quality, security and Ergotron businesses, thanks to new product sales and end market demand.
“In HVAC, underlying order trends are encouraging, though difficult year-over-year comparisons weighed on overall sales growth and operating margin. In custom air, the elimination of unprofitable product lines helped improve adjusted operating earnings, and we expect continued momentum in the data center cooling market to help drive underlying sales growth for the segment,” he said.
Looking ahead to 2016, Clarke said the company has a “strong slate of new product introductions and favorable tailwinds in our end markets, which contribute to our positive outlook.”

No posts to display