By PBN Staff
PROVIDENCE – Nortek Inc. reported net income of $18.5 million, or $1.19 per diluted share, during the second quarter of 2012, compared with a net loss of $31.9 million, or $2.11 per diluted share a year earlier, the company announced late Thursday.
The residential and commercial ventilation maker saw a 9 percent increase in sales from $564.9 million during the second quarter of 2011 to $615.7 million in the second quarter of 2012.
Sales in Nortek’s commercial air solutions segment grew 44 percent year-over-year, partly due to some orders being moved forward at the customer’s request.
“Reflecting the modest pace of recovery in the residential housing sector, sales in our residential ventilation and technology solutions segments were down slightly year-over-year, while our residential heating and cooling business delivered 5 percent growth,” said Nortek President and CEO Michael J. Clarke in a statement.
Clarke added that sales in the company’s display mount solutions segment grew 4 percent over the quarter, mostly driven by new product innovations.
“Higher sales volumes and operational improvements enabled us to expand our margins during the quarter,” said Clarke.
During the three months ended June 30, Nortek’s gross margin increased to 29.8 percent from 27 percent during the quarter ended July 2, 2011.
The company’s selling general and administrative expense decreased by $2 million to $119.1 million over the quarter.
Nortek’s operating earnings more than doubled to $53.7 million from $20.8 million in the second quarter of 2011.
“While we expect residential and nonresidential construction activity to be slightly greater than the levels experienced in 2011, we are cautious about the outlook for the remainder of the year,” said Clarke. “Nonetheless, we believe that we can continue to make operational and financial progress in this environment.”