By PBN Staff
PROVIDENCE – Nortek Inc., the maker of residential and commercial building products, posted net loss of $15.1 million, or 98 cents per diluted share, during the first quarter of 2013.
The result compared with a loss of $1.2 million, or 8 cents per diluted share, during the same quarter in 2012.
The loss could be at least partially attributed to a $15.5 million increase in selling, general and administrative expenses. In the first quarter of 2013, the company’s SG&A expenses rose to $125.6 million from $110.1 million during the same quarter of 2012. The increase was driven largely by $11.6 million in restructuring and transformation expenses in the period.
During the quarter, Nortek’s sales were relatively unchanged, dropping 0.7 percent to $519.1 million from $522.8 million.
“The first quarter of 2013 was in line with our expectations,” Nortek President and CEO Michael J. Clarke said in prepared remarks.
Clarke added that net sales and gross margin were close to the first quarter last year. “At the same time, we made large investments in people and processes to drive our transformation, which resulted in higher [selling, general and administrative] expense in the quarter,” said Clarke. “We expect these investments will provide Nortek with significant long-term benefits.”
According to a company release, 2013 will be the “start of a transformative chapter in Nortek’s history.”
Clarke said in the statement that his company expects to make “significant investments” in product development and marketing during the year.
“Our growth-focused agenda has the potential to be just as transformative for Nortek as our operational improvement initiatives,” said Clarke. “We are looking forward to reporting further advances in both areas as 2013 progresses.”