Nortek Reports 3.9% Decrease in Net Sales Year-Over-Year in Third Quarter Excluding Acquisitions
Net sales were $618.5 million in the third quarter, down from $642.9 million in the third quarter of 2014. Acquisitions contributed to $18.9 million to net sales.
PROVIDENCE, R.I. — Nortek, Inc. (Nasdaq: NTK) announced its financial results for the three-month period ending on Sept. 26, 2015.
Net sales decreased 3.8% to $618.5 million, from $642.9 million in the third quarter of 2014. Acquisitions contributed to $18.9 million to net sales. Excluding acquisitions, divestitures and the impact of foreign exchange translation, net sales decreased 3.9%.
GAAP operating earnings were $14.9 million for Nortek, compared with $33.4 million in the third quarter of 2014. Excluding the impact of acquisitions and divestitures, operating earnings were $19.2 million, compared with $34.8 million in the third quarter of 2014.
Adjusted operating earnings were $39.2 million, compared with $44.4 million in the third quarter of 2014. Adjusted operating margin was 6.3%, compared with 6.9% in the prior-year period. Excluding acquisitions, divestitures and the impact of foreign exchange translation, adjusted operating earnings were $41.3 million, compared with $45.6 million in the third quarter of 2014.
“Solid performance in our Custom Air, Ergonomics and Air Quality businesses was offset by lower sales and profitability in our HVAC and Security segments,” said Michael J. Clarke, president and chief executive officer of Nortek. “During the quarter, we believe that the receipt of an unsolicited proposal to acquire the company, related market rumors and activity related to the company’s review of strategic alternatives had a negative impact on our business, employees and customers, primarily in our HVAC segment and to a lesser extent in our Security and Custom Air segments. We have ended all such activity, and we are working to put the uncertainties and distractions related to this issue behind us. Rebuilding our momentum in the company, particularly in HVAC, will take some time. As a result, we have revised our full-year 2015 financial guidance.”
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