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By PBN Staff
By PBN Staff
PROVIDENCE – Nortek Inc. posted a loss of $8.3 million for 2013, compared with profit of $9.5 million a year earlier. The maker of home and office security solutions, ventilation and air management products, and heating and cooling systems embarked on a dual-focused investment strategy to improve its supply chain operations while growing its top line.
One result of the strategy was the acquisition of 2Gig Technologies Inc. for roughly $135 million, which helped Nortek grow net sales 3.9 percent to $2.3 billion for the year.
“The goal for these initiatives is to position the company as a world-class manufacturer with some of the strongest brands in its markets,” said President and CEO Michael J. Clarke in a statement. “The new structure we are putting in place enabled us to hit major operational milestones” in sourcing, manufacturing footprint and logistics during the year, he added.
In addition to reporting full-year 2013 results, Nortek posted fourth-quarter sales growth of 8.6 percent to $548.9 million, although the company still recorded a net loss for the period of $8.9 million, an improvement on the 2012 fourth-quarter loss of $12.5 million.
Clarke said sales gains were recorded in all five operational segments of the company – residential ventilation, technology solutions, display mount solutions, residential heating and cooling, and custom & engineered solutions – “with U.S. residential construction activity and HVAC demand leading the way.”
Looking ahead, “we remain cautiously optimistic about end-market conditions for full-year 2014. Although the recent industry statistics on housing starts, existing home sales and residential improvements have been somewhat soft, we believe the underlying conditions in the U.S. housing market remain sound,” Clarke said. “We expect our product and market initiatives to continue gaining traction.”