PROVIDENCE, RI, July 27, 1998--Nortek, Inc.(NYSE:NTK) today reported stronger-than-expected net sales, EBITDA and earnings from continuing operations for the second quarter ended July 4, 1998.

Net sales for the quarter were $449.6 million compared to $223.8 million for the same quarter a year earlier. Of the increase, $207.0 million was attributable to the Ply Gem businesses acquired in August, 1997.

EBITDA from continuing operations for the quarter was $43.1 million, up 76 percent from $24.4 million for the comparable 1997 quarter. Pre-tax earnings from continuing operations were $15.5 million, up 32 percent from last year's $11.7 million. Earnings from continuing operations per diluted share were $0.78 for the 1998 second quarter versus $0.78 for the comparable 1997 quarter and the "consensus street estimate" of $0.63.

Second-quarter revenues reflect an increase of 8 percent for Nortek's core business groups owned in both periods, the Residential Building Products Group and the Air Conditioning and Heating Products Group. "Operating results for these two groups were ahead of plan for the quarter," said Richard L. Bready, Chairman and Chief Executive Officer of Nortek. "The Ply Gem Windows, Doors and Siding Group sales exceeded the prior year in this transition year as we integrate the business into the Nortek model, implementing new systems and cost-control measures."

For the first six months of 1998, Nortek's net sales doubled to $842.1 million from $418.0 million a year earlier reflecting both an increase of almost 11 percent from Nortek's core businesses owned in both periods and $379.7 million from the Ply Gem acquisition. EBITDA from continuing operations for the first six months was $72.7 million, up 70 percent from last year's $42.7 million. Pre-tax earnings from continuing operations were $18.0 million, compared to last year's $19.3 million. Diluted earnings per share from continuing operations were $0.95 for the first six months of 1998 versus $1.25 for the first half of last year. Per-share results reflect the Company's recent 2.2-million share equity offering completed in May. Mr. Bready noted "that diluted earnings per share for the first six months of 1998 and 1997 is after amortization of acquired goodwill of $0.50 per share and $0.14 per share, respectively."

The Company has also recently completed the sale of four businesses, including its Universal-Rundle Corporation subsidiary, and has received cash proceeds in excess of $59.0 million.

Bready stated that Nortek's "solid first-half performance and related developments have set the stage for further profitable growth in a continuing strong economy." He said the just-announced 5.6-percent seasonally adjusted increase in housing starts for June, an increase significantly ahead of analysts' forecasts, was "particularly encouraging as we move toward completing our acquisition of NuTone."

Nortek is a leading international manufacturer and distributor of high-quality, competitively priced building, remodeling and indoor environmental control products for the residential, commercial and industrial markets. The Company offers a broad array of products for improving the environments where people live and work. Its products include range hoods and spot ventilation products, heating and air conditioning systems, wood and vinyl windows and doors, vinyl siding products, air quality systems, and specialty electronic, wood and decorating products.


This release contains forward-looking statements relating to future financial results. Actual financial performance may differ as a result of factors over which the Company has no control. Additional information which could affect the company's financial results is included in the Company's Securities and Exchange Commission filings, copies of which are available from Nortek at no charge.

# # #

  

[ Back To News ] [ Back To News Archive ]