NORTEK INC.'S second-quarter net loss of $46.2 million reversed the net gain of $11.5 million reported for the same quarter last year. The company attributed the loss to costs related to its audio-video businesses and the April acquisition of Reznor LLC.
PROVIDENCE – Nortek Inc., maker of home and office security solutions, ventilation and air management products, and heating and cooling systems, reported a second-quarter net loss of $46.2 million, or $2.97 per diluted share, expanding the $8.6 million net loss, or 55 cents per diluted share, posted for the first quarter.
A year earlier, during the second quarter of 2013, Nortek Inc. saw net income of $11.5 million, or 73 cents per diluted share.
Despite the year-over-year earnings reversal, Nortek’s revenue improved during the second quarter, rising 13.9 percent to $718.6 million from $630.7 million for the same three-month period last year.
Nortek’s second-quarter net loss was largely the result of an $80.4 million non-cash impairment charge related to the company’s audio-video businesses, Nortek said, as well as costs related to the acquisition of Reznor LLC in April.
Adjusted to exclude these factors, Nortek’s second-quarter operating earnings totaled $59.2 million, an increase of 17.2 percent over the $50.5 million in operating earnings reported for the three months through June 2013.
“Nortek’s sales growth accelerated in the second quarter, driven by strong demand for our home security and automation products, as well as our air management solutions for non-residential applications,” said Michael J. Clarke, president and CEO of Nortek, in a release. “Net sales were up from the second quarter last year in all five of our major business segments, reflecting organic and acquisition-related growth.”
Clarke added that the company is focused on the structure of its business segments and improving operational efficiencies. Looking ahead, Clarke said Nortek is “on track to achieve solid growth and improved profitability in 2014,” with sales expected to increase in residential markets in the second half of the year.