Nortek reverses 2011 results, posts 2012 profit

By PBN Staff
Twitter: @ProvBusNews

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.”