Nortek reports first-quarter loss

NORTEK PRESIDENT AND CEO MICHAEL J. Clarke said Nortek's first-quarter results were in line with expectations. The company reported a larger loss, but an increase in revenue. / COURTESY NORTEK
NORTEK PRESIDENT AND CEO MICHAEL J. Clarke said Nortek's first-quarter results were in line with expectations. The company reported a larger loss, but an increase in revenue. / COURTESY NORTEK

PROVIDENCE – Nortek Inc. widened its first-quarter loss to $13.9 million, which is $5.3 million more than it reported during the year-ago first quarter.
The manufacturer of home and office security solutions, ventilation and air management products, and heating and cooling systems reported a loss of 87 cents per diluted share compared with 55 cents per diluted share a year ago.
Nortek also reported a 4.5 percent increase in sales to $572.7 million in the three months that ended March 28, compared with $547.8 million during the prior-year quarter.
“Nortek’s results were in line with our expectations for the first quarter,” President and CEO Michael J. Clarke said in a statement.
Clarke said that the first quarter is “typically our seasonal low point,” but the acquisition of Reznor for $260 million last year, along with growth in the air quality, security and ergonomics business, helped boost the increase in net sales.
“This was partially offset by anticipated declines in our custom air and HVAC segments, reflecting lower sales to a major customer in custom air, and demand shifts that caused a tough year-over-year comparison in HVAC,” Clarke said.
The company said sales in the air quality and home solutions segment dipped 1.8 percent year over year, while the security and control solutions segment saw sales increase 13.1 percent during the same time period. The 13.1 percent gain was driven by higher sales of security products.
Sales in the ergonomic and productivity solutions segment jumped 14.9 percent (or 5 percent excluding Anthro, a maker of charging carts and mobile work stations acquired for approximately $50 million earlier this year).
In the residential and commercial HVAC segment, sales increased 22.9 percent year over year, and sales in custom and commercial air solutions decreased 10.3 percent. Audio, visual and control solutions saw sales decrease 9.5 percent, reflecting lower sales of professional video signal management products.
Clarke said he expects 2015 to be a year of “continued improvement in residential and nonresidential construction.” As a result, he said the air quality and custom air segments should benefit.
“With favorable conditions in our end markets, and product development and operational improvement programs underway, Nortek is well-positioned to deliver profitable growth and maximize long-term value for our shareholders as 2015 unfolds,” Clarke said.

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