Updated March 27 at 4:27pm

Sign up to receive Providence Business News' newsletters
and breaking news alerts.  

manufacturing

Nortek reverses 2011 results, posts 2012 profit

Posted:

PROVIDENCE – Despite taking a $6.4 million pre-tax loss from the retirement of debt, Nortek Inc., the maker of residential and commercial building products, posted net income of $9.5 million, or 61 cents per share, in 2012, reversing its loss of $55.9 million, or $3.70 per share, in the previous year. At the same time, the company saw revenue increase 2.8 percent on the year to $2.2 billion.

“This was a profitable and strategically important year for Nortek,” said President and CEO Michael J. Clarke. “After successfully refinancing approximately $251 million of our secured term loan facility in the fourth quarter, we closed 2012 well-positioned to continue investing in Nortek’s future.”

For instance, Clarke said, the company plans to begin building a Nortek manufacturing campus in Mexico in the second quarter to consolidate certain North American operations, “optimizing our manufacturing footprint, distribution network and supply chain.”

The company’s fourth-quarter results delivered mixed news. Nortek posted a net loss of $12.5 million, or 82 cents per share, for the period, versus a $800,000, or 5 cents per share loss in the 2011 fourth quarter, as revenue fell 5.6 percent to $505.4 million. However, the company took a $6.4 million pre-tax loss from debt retirement as well as a $9.3 million pre-tax expense related to restructuring and “operational improvement” costs.

Clarke added that sales for residential ventilation products increased 6 percent year over year in the period, “reflecting improved conditions in the North American residential construction markets.”

nortek, michael j. clarke, improved conditions in the north american residential construction market

Comments

No comments on this story | Please log in to comment by clicking here
Please log in or register to add your comment
Latest News