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 June 30, 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
August 03, 2001
Common stock, $1.00 par value   10,408,332
Special common stock, $1.00 par value   527,512




NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET

June 30, Dec. 31,
2001
 2000
(Amounts in thousands)
(Unaudited)
 
Assets            
 
Current Assets:  
Unrestricted  
  Cash and cash equivalents   $ 92,936   $ 132,508  
  Marketable securities available for sale    54,664    8,042  
Restricted  
  Investments and marketable securities at cost, which approximates market    7,595    10,869  
  Short-term investments held for redemption of Senior  
     Subordinated Notes including redemption premium and accrued interest    215,060    --  
Accounts receivable, less allowances of $10,222,000 and $9,799,000    308,546    250,568  
Inventories:  
  Raw materials    104,694    89,859  
  Work in process    26,020    24,762  
  Finished goods    124,492    109,580  
     255,206    224,201  
 
Prepaid expenses    17,666    11,999  
Other current assets    16,957    13,432  
Prepaid income taxes    44,900    44,834  
      Total current assets    1,013,530    696,453  
 
Property and Equipment, at Cost:  
Land    17,775    18,345  
Buildings and improvements    137,547    133,547  
Machinery and equipment    397,578    378,078  
     552,900    529,970  
Less accumulated depreciation    212,159    195,193  
      Total property and equipment, net    340,741    334,777  
 
Other Assets:  
  Goodwill, less accumulated amortization of $81,348,000 and $73,235,000    566,689    582,436  
  Intangible assets, less accumulated amortization of $25,311,000 and  
    $22,278,000    129,594    125,532  
  Deferred debt expense    20,683    18,916  
  Restricted investments and marketable securities held by pension trusts    40,369    32,436  
  Other    47,929    46,262  
     805,264    805,582  
    $ 2,159,535   $ 1,836,812  
 
Liabilities and Stockholders' Investment  
 
Current Liabilities:  
9 7/8% Senior Subordinated Notes called for redemption    204,215    --  
Notes payable and other short-term obligations   $ 8,718   $ 11,581  
Current maturities of long-term debt    4,967    9,916  
Accounts payable    204,615    155,381  
Accrued expenses and taxes, net    172,646    157,078  
      Total current liabilities    595,161    333,956  
 
Other Liabilities:  
Deferred income taxes    62,169    60,950  
Other    139,057    139,202  
     201,226    200,152  
Notes, Mortgage Notes and Obligations  
  Payable, Less Current Maturities    1,066,489    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;  
  18,774,862 and 18,752,974 shares issued    18,775    18,753  
Special common stock, $1 par value; authorized 5,000,000      
  shares; 818,870 and 827,504 shares issued    819    828  
Additional paid-in capital    209,243    208,813  
Retained earnings    202,166    184,866  
Accumulated other comprehensive loss    (22,660 )  (19,367 )
Less -- treasury common stock at cost, 8,377,886 and      
  8,377,834 shares    (109,615 )  (109,613 )
--treasury special common stock at cost, 290,121 and  
  290,107 shares    (2,069 )  (2,069 )
      Total stockholders' investment    296,659    282,211  
 
    $ 2,159,535   $ 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
June 30, July 1,
2001
 2000
(In thousands except per share amounts)
(Unaudited)
 
Net Sales     $ 598,806   $ 600,743  
 
Costs and Expenses:  
  Cost of products sold    448,153    455,071  
  Selling, general and administrative expense, net    86,622    82,702  
  Amortization of goodwill and intangible assets    5,732    5,653  
     540,507    543,426  
Operating earnings    58,299    57,317  
Interest expense    (25,694 )  (24,284 )
Investment income    1,995    1,467  
Earnings before provision for income taxes    34,600    34,500  
Provision for income taxes    14,900    15,400  
Net Earnings   $ 19,700   $ 19,100  
 
Net Earnings per share of common stock:  
  Basic   $ 1.80   $ 1.68  
  Diluted   $ 1.76   $ 1.67  
Weighted Average Number of Shares:  
  Basic    10,925    11,388  
  Diluted    11,204    11,428  

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
Six Months Ended
June 30, July 1,
2001
 2000
(In thousands except per share amounts)
(Unaudited)
 
Net Sales     $ 1,066,075   $ 1,092,300  
 
Costs and Expenses:  
  Cost of products sold    808,889    829,239  
  Selling, general and administrative expense, net    168,741    164,539  
  Amortization of goodwill and intangible assets    11,516    11,405  
     989,146    1,005,183  
 
Operating earnings    76,929    87,117  
Interest expense    (51,032 )  (48,594 )
Investment income    4,203    3,377  
Earnings before provision for income taxes    30,100    41,900  
Provision for income taxes    12,800    18,800  
Net Earnings   $ 17,300   $ 23,100  
 
Net Earnings per share of common stock:  
  Basic   $ 1.58   $ 2.02  
  Diluted   $ 1.55   $ 2.01  
Weighted Average Number of Shares:  
  Basic    10,920    11,436  
  Diluted    11,182    11,488  

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
Six Months Ended
June 30, July 1,
2001
 2000
(Amounts in thousands)
(Unaudited)
 
Cash Flows from operating activities:            
 
Net earnings   $ 17,300   $ 23,100  
 
Adjustments to reconcile net earnings  
  to cash:  
Depreciation and amortization expense    31,547    30,953  
Non-cash interest expense, net    2,117    1,986  
Gain on sale of land    --    (1,712 )
 
Changes in certain assets and liabilities,  
  net of effects from acquisitions and  
  dispositions:  
Accounts receivable, net    (60,623 )  (69,101 )
Inventories    (32,692 )  (36,454 )
Prepaids and other current assets    (11,735 )  (1,781 )
Accounts payable    51,609    41,517  
Accrued expenses and taxes    16,891    16,545  
Long-term assets, liabilities and other, net    (1,772 )  (1,033 )
    Total adjustments to net earnings    (4,658 )  (19,080 )
    Net cash provided by operating activities   $ 12,642   $ 4,020  
 
Cash Flows from investing activities:  
Capital expenditures   $ (26,894 ) $ (14,300 )
Purchase of investments and marketable  
  securities    (54,201 )  (4,004 )
Proceeds from the sale of investments    
  and marketable securities    8,118    38,439  
Proceeds from the sale of fixed assets    486    5,361  
Acquisition deposit held in escrow    --    (10,628 )
Funds held in escrow for the redemption, in July 2001, of the  
    9 7/8% Senior Subordinated Notes due 2004 including  
    redemption premium and accrued interest    (215,060 )  --  
Change in restricted cash and investments    (4,457 )  (4,061 )
Other, net       2,165     (2,643 )
  Net cash (used in) provided by investing    
    activities    (289,843 )  8,164  
Cash Flows from financing activities:  
Sale of 9 7/8% Senior Subordinated Notes due 2011    241,800    --  
Change in borrowings, net    (4,490 )  (5,669 )
Purchase of Nortek Common and Special    
  Common Stock    --    (2,671 )
Other, net    319    6