PROVIDENCE – For the quarter ended March 31, NTK Holdings Inc., the parent of Nortek Holdings Inc. and Nortek Inc., today posted a profit of $1.2 million, compared with $17.8 million in the same quarter of 2006.
The company cited weak demand in the residential HVAC and the slow housing market, which hurt demand for residential products. Higher costs for materials were partially offset by increased prices, it said.
Operating earnings declined by 30.5 percent to $44.8 million; that included $10.2 million from acquisitions, NTK said..
First-quarter sales increased 3.4 percent to $553 million from $535 million in the first quarter of 2006. Acquisitions contributed about $53.7 million in net sales in the quarter just ended, NTK said.
Highlights of the quarter included the company’s acquisition of LiteTouch Inc. of Salt Lake City, a designer, manufacturer and distributor of automated lighting controls for residential and commercial retrofit and new construction, which closed March 2.
As of March 31, NTK had $43 million in cash and $34 million in debt.
Since then, the company also has acquired Allstar Corp. of Downington, Pa., a manufacturer and distributor of gate and door openers and accessories for the garage door and fence industry. The transaction closed on April 10.
NTK Holdings Inc., a Delaware corporation that has its headquarters in Providence, is the parent of Nortek Holdings Inc. and Nortek Inc. NTK is a maker of branded residential and commercial merchandise including HVAC, ventilation and home security products. Additional information can be found at www.norteck-inc.com.
