Nortek posts sales, profit increase in 3Q

NORTEK INC. posted increases in sales and profit in the third quarter, the company said.
NORTEK INC. posted increases in sales and profit in the third quarter, the company said.

PROVIDENCE – Nortek Inc., a maker of home and office security solutions, ventilation and air management products, and heating and cooling systems, posted increases in sales and profit in the third quarter, thanks in part to the acquisition of an HVAC business.
The earnings report for the three months that ended Sept. 27 showed net sales increasing to $642.9 million, a 9.1 percent increase from the $589.2 million net sales in third quarter 2013. Nortek said the acquisition of Thomas & Betts’ HVAC business, also known as Reznor, contributed $38 million to net sales during the quarter.
The acquisition closed April 30; Reznor contributed $1.8 million to operating earnings and $2.9 million to adjusted operating earnings.
Profit rose 9.5 percent to $4.6 million, or 29 cents per diluted share, in the third quarter compared with $4.2 million, or 27 cents per diluted share, in third quarter 2013.
Nortek President and CEO Michael J. Clarke said in a statement that sales continued to grow in the third quarter, fueled by increased demand for products in ergonomic and productivity solutions, residential and commercial HVAC, and security and control solutions.
In the residential and commercial HVAC segment, he said net sales increased 39.5 percent to $153.9 million, from $110.3 million in the third quarter of 2013. Excluding Reznor’s contribution, net sales grew 5.1 percent, he said.
Net sales in the custom and commercial air solutions segment decreased 7 percent to $106.8 million, from $114.9 million in the year-earlier period, he said.
“As mentioned last quarter, we are seeing softness in certain end markets that we sell into such as healthcare,” Clarke said.
“We expect Nortek to conclude 2014 with a solid fourth quarter and deliver increased profitability for the year compared to 2013,” Clarke said. “While conditions are improving in the overall residential and non-residential construction markets, there still appears to be softness in certain sub-markets that are important to Nortek, such as remodeling and replacement and the non-residential healthcare segment.”
“At the same time, we expect to continue realizing the benefits of our operational initiatives in the fourth quarter with the balance of these benefits being achieved over the next couple of years. With our operational initiatives in place, we are focusing more of our attention on growing the top line through new product introductions and sales strategies,” Clarke added.

No posts to display