PROVIDENCE – Nortek, manufacturer of residential and commercial ventilation, HVAC and technology products, reported net losses in both the fourth quarter and the full year on Wednesday afternoon.
The company, which left bankruptcy on Dec. 17, 2009, said its 2010 full year net earnings was a loss of $13.4 million and its fourth quarter loss was $10.1 million. Comparatively, the company reported gains in 2009 for the full year, of 608.7 million, and in the fourth quarter of 2009 of $899.2 million.
Nortek said its loss “before the gain on reorganization items” was: $25.0 million for the full year, as compared to a loss of $343.6 million in 2009. For the fourth quarter, its loss was $13.2 million, compared to a loss of $56.7 million.
Net sales for the full year increased to $1.9 billion, as compared to $1.8 billion in 2009. For the fourth quarter, sales jumped to $463 million last year from $429 million in 2009.
“We have concerns that the effects of continued low consumer confidence, high unemployment levels and a continued high level of foreclosures will continue to depress the housing markets,” said Richard L. Bready, chairman and CEO of Nortek.
“In addition, the non-residential markets, which declined further in 2010, are expected to remain weak throughout 2011. These continued depressed market conditions, together with commodity cost pressures, will challenge 2011 performance.”
Nortek noted a non-cash goodwill impairment charge of $284 million, and reorganization expenses of $22.5 million on its financial statement from Jan. 1 to Dec. 31, 2009, it said.
Nortek acquired Ergotron Inc. in December 2010, for about $298.0 million, noting the acquisition will help the company expand in the offices, education and healthcare markets.
