Nortek posts profit decrease in 3Q 2007

PROVIDENCE – Nortek Inc. posted a third-quarter profit of $1.4 million for the period ended Sept. 29, compared with a year-ago profit of $23.1 million.
The cost of products sold rose $28.8 million or 7.1 percent compared with the 2006 third quarter, to $433.0 million. Also contributing to the decline were $13.4 million in one-time expenses, including $2.9 million related to the closure of three U.S. plants.
Meanwhile, parent company NTK Holdings Inc. – whose balance sheet is similar to Nortek’s, except for certain of senior debt and deferred compensation costs not shared by the subsidiary – posted a net loss of $8.7 million for the quarter ended Sept. 29, compared with a year-ago profit of $15.2 million, as its interest expenses surged 11.0 percent to $46.4 million. The company’s third-quarter net sales increased 4.0 percent to $602.2 million, with acquisitions contributing $30.9 million in net sales during the period.