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PROVIDENCE, RI, May 4, 2000—Speaking at the annual
meeting of stockholders of Nortek, Inc. (NYSE:NTK),
Richard L. Bready, Chairman and Chief Executive Officer, said today the Company
“is moving aggressively forward into the new Century after having completed the
most successful year in its history.”
While emphasizing a strong performance in all three Nortek
product groups,
Bready said, “1999 was clearly a year in which the
Company met and exceeded its objectives.
We made excellent progress on a number of fronts. Our financial performance represents five
consecutive years of sales increases and a compound annual growth rate of over
26 percent since 1994. Nortek
posted
In 1999, all three of Nortek’s operating groups
showed double-digit net sales and operating earnings increases. The Residential Building Products Group led
the way with increases in net sales and operating earnings of 34 percent and 76
percent, respectively. Air Conditioning
and Heating Products increased operating earnings 20 percent on a 16-percent
increase in net sales, while Windows, Doors and Siding had operating earnings
18 percent higher on a 38-percent increase in net sales. Nortek made five acquisitions in 1999
that contributed approximately $355 million to the overall increase in net
sales.
Stock Repurchase Program
Mr. Bready announced that the Board of Directors of Nortek
has authorized a new common stock repurchase program of up to 1 million shares
of the Company’s common stock. The
timing of purchases will be dictated by overall market conditions, cash
availability and the terms of the Company’s outstanding debt instruments.
Mr. Bready said, “We are initiating the new stock repurchase
program because we believe the current price of Nortek stock does not
reflect the progress we have made or Nortek’s full potential as an
industry leader. The Board and I feel
strongly that the stock is very undervalued and an excellent investment at these
levels.”
Re-election of Director
In other annual meeting news, Richard J. Harris, Nortek
Vice President and Director, was re-elected to a three-year term on the Nortek
Board of Directors. His term will
expire at the 2003 annual meeting of stockholders. Mr. Harris has been a Nortek director since 1984. Stockholders also approved Nortek’s
2000 Equity and Cash Incentive Plan, and the Company’s 2000 Stock Option Plan
for Directors. Mr. Bready said these
plans “provide stock and cash incentives that align executive management with
the interest of all shareholders.”
Nortek is a leading
international manufacturer and distributor of high-quality, competitively
priced building, remodeling and indoor environmental control products for the
residential and commercial markets. The
Company offers a broad array of products for improving the environments where
people live and work. Its products
include range hoods and other spot ventilation products, heating and air
conditioning systems, wood and vinyl windows and doors, vinyl siding products,
indoor air quality systems, and specialty electronic products.
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are based on
the Company’s current plans and expectations and involve risks and
uncertainties that could cause actual future activities and results of
operations to be materially different from those set forth in the
forward-looking statements. Important
factors impacting such forward looking statements include the availability and
cost of raw materials and purchased components, the level of construction and
remodeling activity, changes in general economic conditions, the rate of sales
growth, product liability claims and other risks detailed in the Company’s
reports filed with the Securities and Exchange Commission.
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