UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

__________

FORM 10-Q
__________


     
[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
     
For the quarterly period ended March 31, 2001
     
OR
     
[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
     
For the transition period from ___________ to __________
     
1-6112
(Commission File Number)
__________
     
NORTEK, INC.
(Exact name of registrant as specified in its charter)
__________


            Delaware   05-0314991
(State or other jurisdiction of   (I.R.S. Employer
incorporation or organization)   Identification No.)
     
50 Kennedy Plaza, Providence, RI   02903-2360
    (Address of principal executive offices)       (Zip Code)
 
(401) 751-1600
(Registrant’s telephone number, including area code)
__________


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
Yes [X]   No [_]



The total number of shares of the registrant’s Common Stock:


Class   Shares Outstanding
April 27, 2001
Common stock, $1.00 par value   10,394,504
Special common stock, $1.00 par value   530,181


NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
March 31, Dec. 31,
2001
 2000
(Amounts in thousands)
(Unaudited)
 
Assets            
 
Current Assets:  
Unrestricted  
  Cash and cash equivalents   $ 82,061   $ 132,508  
  Marketable securities available for sale    14,013    8,042  
Restricted    
  Cash, investments and marketable securities at cost,      
    which approximates market    8,125    10,869  
Accounts receivable, less allowances  
  of $9,586,000 and $9,799,000    269,045    250,568  
Inventories  
  Raw materials    102,729    89,859  
  Work in process    26,770    24,762  
  Finished goods    114,160    109,580  
     243,659    224,201  
  
Prepaid expenses       16,569     11,999  
Other current assets    13,665    13,432  
Prepaid income taxes    44,900    44,834  
      Total current assets    692,037    696,453  
 
Property and Equipment, at Cost:  
Land    18,410    18,345  
Buildings and improvements    137,647    133,547  
Machinery and equipment    382,404    378,078  
     538,461    529,970  
Less accumulated depreciation    202,562    195,193  
      Total property and equipment, net    335,899    334,777  
 
Other Assets:  
Goodwill, less accumulated amortization      
  of $77,090,000 and $73,235,000    576,621    582,436  
Intangible assets, less accumulated amortization  
  of $23,842,000 and $22,278,000    123,529    125,532  
Deferred debt expense    18,100    18,916  
Restricted investments and marketable securities held  
  by pension trusts    32,918    32,436  
Other    46,683    46,262  
     797,851    805,582  
    $ 1,825,787   $ 1,836,812  
 
Liabilities and Stockholders’ Investment            
 
Current Liabilities:  
Notes payable and other short-term obligations   $ 12,419   $ 11,581  
Current maturities of long-term debt    10,015    9,916  
Accounts payable    185,279    155,381  
Accrued expenses and taxes, net    118,279    157,078  
      Total current liabilities    325,992    333,956  
 
Other Liabilities  
Deferred income taxes    61,254    60,950  
Other    139,353    139,202  
     200,607    200,152  
 
Notes, Mortgage Notes and Obligations      
  Payable, Less Current Maturities    1,023,574    1,020,493  
 
Stockholders’ Investment:  
Preference stock, $1 par value; authorized      
  7,000,000 shares, none issued    --    --  
Common stock, $1 par value; authorized  
  40,000,000 shares; 18,772,031 and  
  18,752,974 shares issued    18,772    18,753  
Special common stock, $1 par value;      
  authorized 5,000,000 shares; 820,614      
  and 827,504 shares issued    821    828  
Additional paid-in capital    209,113    208,813  
Retained earnings    182,466    184,866  
Accumulated other comprehensive loss    (23,876 )  (19,367 )
Less -- treasury common stock at cost,      
       8,377,844 and 8,377,834 shares    (109,613 )  (109,613 )
     --treasury special common stock  
       at cost, 290,110 and 290,107 shares    (2,069 )  (2,069 )
 
      Total stockholders’ investment    275,614    282,211  
    $ 1,825,787   $ 1,836,812  

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

For The
Three Months Ended
March 31, April 1,
2001
 2000
(In thousands except per share amounts)
(Unaudited)
 
Net Sales     $ 467,269   $ 491,557  
 
Costs and Expenses:  
  Cost of products sold    360,736    374,168  
  Selling, general and administrative expense    82,119    81,837  
  Amortization of goodwill and intangible assets    5,784    5,752  
     448,639    461,757  
 
Operating earnings    18,630    29,800  
Interest expense    (25,338 )  (24,310 )
Investment income    2,208    1,910  
Earnings (loss) before income taxes    (4,500 )  7,400  
Income tax provision (benefit)    (2,100 )  3,400  
Net Earnings (Loss)   $ (2,400 ) $ 4,000  
 
Net Earnings (Loss) per share of common stock:  
  Basic   $ (.22 ) $ .35  
  Diluted   $ (.22 ) $ .35  
Weighted Average Number of Shares:  
  Basic    10,916    11,484  
  Diluted    10,916    11,549  

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the
Three Months Ended
March 31, April 1,
2001
 2000
(Amounts in thousands)
(Unaudited)
 
Cash Flows from operating activities:      
 
Net earnings (loss)  $(2,400 ) $   4,000  
 
Adjustments to reconcile net earnings (loss) to cash: 
Depreciation and amortization expense  15,679   15,555  
Non-cash interest expense  1,542   985  
Changes in certain assets and liabilities, net of effects from 
  acquisitions and dispositions: 
Accounts receivable, net  (21,336 ) (28,675 )
Inventories  (21,158 ) (39,456 )
Prepaids and other current assets  (5,988 ) (3,926 )
Accounts payable  31,999   44,622  
Accrued expenses and taxes  (35,787 ) (30,392 )
 Long-term assets, liabilities and other, net  (1,284 ) (1,171 )
    Total adjustments to net earnings (loss)  (36,333 ) (42,458 )
    Net cash used in operating activities  $(38,733 ) $(38,458 )
 
Cash Flows from investing activities:      
Capital expenditures  $(14,354 ) $(7,667 )
Purchase of investments and marketable securities  (13,998 ) (4,004 )
Proceeds from the sale of investments and marketable securities  8,119   34,439  
Change in restricted cash and investments  2,469   (21 )
Other, net  243   2,630  
  Net cash (used in) provided by investing activities  (17,521 ) 25,377  
Cash Flows from financing activities: 
Change in borrowings, net  5,562   --  
Purchase of Nortek Common and Special 
  Common Stock  --   (1,029 )
Other, net  245   60  
  Net cash provided by (used in) financing activities  5,807   (969 )
Net decrease in unrestricted cash and cash equivalents  (50,447 ) (14,050 )
Unrestricted cash and cash equivalents at the beginning of the period  132,508   80,893  
Unrestricted cash and cash equivalents at the end of the period  $   82,061   $ 66,843  
 
Supplemental disclosure of cash flow information: 
 
Interest paid  $   44,496   $ 44,171  
 
Income taxes paid, net  $     1,683   $   1,762  

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ INVESTMENT
FOR THE THREE MONTHS ENDED APRIL 1, 2000




Addi- Accumulated
Special tional Other
Common Common Paid in Retained Treasury Comprehensive Comprehensive
Stock
 Stock
 Capital
 Earnings
 Stock
 Loss
 Income (Loss)
(Dollar amounts in thousands)
(Unaudited)
 
Balance, December 31, 1999   $18,738   $ 841   $208,755   $ 143,266   $(99,961 ) $(11,822 ) $      --  
Net earnings  --   --   --   4,000   --   --   4,000  
Other comprehensive income (loss): 
  Currency translation adjustment  --   --   --   --   --   (1,160 ) (1,160 )
  Unrealized decline in the value of    
    marketable securities  --   --   --   --   --   (45 ) (45 )
Comprehensive income     $  2,795  
 
725 shares of special common stock 
  converted into 725 shares of 
  common stock  1   (1 ) --   --   --   --  
1,500 shares of common stock    
  issued upon exercise of stock options  1   --   53   --   --   --  
51,013 shares of treasury stock acquired  --   --   --   (1,037 ) --  
Balance, April 1, 2000  $18,740   $ 840   $208,808   $ 147,266   $(100,998 ) $(13,027 )

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.



NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ INVESTMENT
FOR THE THREE MONTHS ENDED MARCH 31, 2001




Addi- Accumulated
Special tional Other
Common Common Paid in Retained Treasury Comprehensive Comprehensive
Stock
 Stock
 Capital
 Earnings
 Stock
 Loss
 Loss
(Dollar amounts in thousands)
(Unaudited)
 
Balance, December 31, 2000     $ 18,753   $ 828