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Almon Hall

Wall Street Reacts to Negative Nortek Q3 Numbers; AVC Sales Drop 36.8%

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Company Blames Declines on ‘Negative Impact’ of United Technologies Unsuccessful Acquisition Bid

Nortek's HeadquartersNortek, Inc. stock dropped more than 9.3% in early afternoon trading Wednesday in the wake of a report released by the company after the close of business Tuesday showing results for their fiscal third quarter. With sales and profit declines in key business segments – as well as for the company overall – it appears that Wall Street analysts are growing tired of waiting for the promised benefits of the company’s multi-year restructuring program, begun four years ago.

The company reported overall sales for the quarter of $618.5 million or 3.8% below the $642 million booked in the third quarter last year. The profit picture was even bleaker with a net loss of $14.4 million in the quarter this year as compared with a net profit in the quarter last year of $4.6 million.

Surprisingly, the AVC division saw sales drop an astonishing 36.8% to $30.1 million – well off the $47.6 million in the quarter last year – in the wake of the spin-off of TV One and the company’s exit from commercial AV businesses.

See more on this report and its troubling revelations… [Read more…] about Wall Street Reacts to Negative Nortek Q3 Numbers; AVC Sales Drop 36.8%

Nortek’s Struggling AV Division Forces Company to Book a $46.2 Million Q2 Net Loss; Burke is Out

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Sean Burke, Head of Technology Solutions Group is Leaving Company

Nortek LogoNortek Inc. released yesterday the financial results for their fiscal second quarter and first half showing a solid overall sales gain of 13.9% to $718.6 million, up from $630.7 million in the same quarter last year. Sales increased at a more moderate pace for the first half, coming in at $1.266 billion or 10.1% higher than the $1.149 booked last year.

But in a bit of a surprise, the company chose to break out the results of their AV division separately – clearly exposing what many had suspected for  a couple of years now – this division is in serious trouble. Even more surprising, in a filing with the SEC, the company revealed that Sean Burke, Group President of the Technology Solutions Group is leaving the company “to pursue other interests.”

See more on just what Nortek’s latest financial results show… [Read more…] about Nortek’s Struggling AV Division Forces Company to Book a $46.2 Million Q2 Net Loss; Burke is Out

Nortek Reports Uneven Q1 Results, But TECH Actually Contributes This Time

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Nortek LogoNortek, Inc. reported their financial results from the first quarter of fiscal 2013 late last week. The results were mixed as the company deals with a struggling economy and a difficult internal restructuring that is impacting costs now, with any resulting benefits to be realized still down the road. But for the first time in several quarters, the company’s Technology Solutions Segment (TECH) actually offered a positive contribution with growth in both sales and profits offsetting losses in other divisions. But TECH’s success was largely due to a recent acquisition in the security business.

See more on Nortek’s results… [Read more…] about Nortek Reports Uneven Q1 Results, But TECH Actually Contributes This Time

Nortek’s TECH Segment’s Troubled Transformation

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Nortek LogoIn a recent fiscal year 2012 fourth quarter and full-year report, Nortek, Inc. showed a mixture of hit-and-miss results with fourth quarter sales dropping 5.6% to $505.4 million as compared to Q4 2011’s $535.2 million. Worse yet, the company’s Q4 net loss increased from last year’s $800,000 to a substantial $12.5 million. These results were in spite of the fact that this year’s calendar for the quarter had two more days in it than the quarter last year.

However, Nortek’s overall annual results showed a brighter picture with 2012 sales increasing to $2.2 billion, up 2.8% from the previous year’s $2.14 billion. Net profits in 2012 came in at $9.5 million – a substantial improvement over 2011’s net loss of $55.9 million.

But one other thing came through loud and clear…Nortek’s TECH segment remains troubled… [Read more…] about Nortek’s TECH Segment’s Troubled Transformation