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 September 29, 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
November 02, 2001
Common stock, $1.00 par value   10,438,626
Special common stock, $1.00 par value   526,318




NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET

September 29, Dec. 31,
2001
 2000
(Dollar amounts in thousands)
(Unaudited)
 
Assets            
 
Current Assets:  
Unrestricted  
  Cash and cash equivalents   $ 79,462   $ 130,929  
  Marketable securities available for sale    110,121    8,042  
Restricted  
  Investments and marketable securities at cost, which approximates market    7,365    10,774  
Accounts receivable, less allowances of $10,355,000 and $8,161,000    255,957    225,794  
Inventories:  
  Raw materials    77,163    69,627  
  Work in process    21,015    21,185  
  Finished goods    98,528    105,481  
     196,706    196,293  
 
Prepaid expenses    12,497    10,304  
Other current assets    16,303    12,940  
Prepaid income taxes    43,900    40,517  
Assets of discontinued operations    --    128,023  
      Total current assets    722,311    763,616  
 
Property and Equipment, at Cost:  
Land    16,122    16,744  
Buildings and improvements    126,186    120,948  
Machinery and equipment    357,820    328,301  
     500,128    465,993  
Less accumulated depreciation    211,122    183,539  
      Total property and equipment, net    289,006    282,454  
 
Other Assets:  
 
Goodwill, less accumulated amortization of $85,217,000 and $73,235,000    562,560    582,436  
Intangible assets, less accumulated amortization of $25,961,000 and  
  $21,378,000    116,050    113,117  
Deferred debt expense    19,571    18,916  
Restricted investments and marketable securities held by pension trusts    56,004    32,436  
Other    44,267    43,837  
     798,452    790,742  
    $ 1,809,769   $ 1,836,812  
 
Liabilities and Stockholders’ Investment            
 
Current Liabilities:  
Notes payable and other short-term obligations   $ 7,052   $ 11,581  
Current maturities of long-term debt    58,278    9,817  
Accounts payable    128,823    133,963  
Accrued expenses and taxes, net    149,524    140,814  
Liabilities of discontinued operations    --    55,291  
      Total current liabilities    343,677    351,466  
 
Other Liabilities:  
Deferred income taxes    53,436    52,434  
Other    154,715    130,375  
     208,151    182,809  
 
Notes, Mortgage Notes and Obligations  
  Payable, Less Current Maturities    991,419    1,020,326  
Stockholders’ Investment:  
Preference stock, $1 par value; authorized      
  7,000,000 shares, none issued    --    --  
Common stock, $1 par value; authorized 40,000,000 shares;  
  18,814,764 and 18,752,974 shares issued    18,815    18,753  
Special common stock, $1 par value; authorized 5,000,000      
  shares; 817,018 and 827,504 shares issued    817    828  
Additional paid-in capital    210,006    208,813  
Retained earnings    185,366    184,866  
Accumulated other comprehensive loss    (36,798 )  (19,367 )
Less --treasury common stock at cost, 8,377,910 and      
        8,377,834 shares    (109,615 )  (109,613 )
        --treasury special common stock  
        at cost, 290,128 and 290,107 shares    (2,069 )  (2,069 )
        Total stockholders’ investment    266,522    282,211  
    $ 1,809,769   $ 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
(In thousands except per share amounts)

For The
Three Months Ended
September 29, September 30,
2001
 2000
(Unaudited)
 
Net Sales     $ 487,510   $ 494,627  
 
Costs and Expenses:  
  Cost of products sold    359,218    367,480  
  Selling, general and administrative expense    82,800    72,933  
  Amortization of goodwill and intangible assets    5,745    5,666  
     447,763    446,079  
 
Operating earnings    39,747    48,548  
Interest expense    (26,405 )  (24,400 )
Investment income    4,058    1,752  
 
Earnings from continuing operations before provision  
  for income taxes    17,400    25,900  
Provision for income taxes    10,500    12,900  
Earnings from continuing operations    6,900    13,000  
Earnings (loss) from discontinued operations    (20,100 )  2,700  
Extraordinary loss from debt retirement    (3,600 )  --  
Net Earnings(loss)   $ (16,800 ) $ 15,700  
Earnings (loss) per share of common stock:  
Earnings from continuing operations:  
  Basic   $ .63   $ 1.18  
  Diluted   $ .61   $ 1.18  
 
Earnings (loss) from discontinued operations:  
  Basic   $ (1.84 ) $ .24  
  Diluted   $ (1.79 ) $ .24  
 
Extraordinary loss from debt retirement:  
  Basic   $ (.33 ) $ --  
  Diluted   $ (.32 ) $ --  
 
Net earnings (loss):  
  Basic   $ (1.54 ) $ 1.42  
  Diluted   $ (1.50 ) $ 1.42  
 
Weighted Average Number of Shares:  
  Basic    10,941    11,025  
  Diluted    11,220    11,057  

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


NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands except per share amounts)

For The
Nine Months Ended
September 29, September 30,
2001
 2000
(Unaudited)
 
Net Sales     $ 1,411,113   $ 1,420,264  
 
Costs and Expenses:  
  Cost of products sold    1,043,382    1,053,332  
  Selling, general and administrative expense    229,742    212,647  
  Amortization of goodwill and intangible assets    17,011    16,816  
     1,290,135    1,282,795  
 
Operating earnings    120,978    137,469  
Interest expense    (77,437 )  (72,994 )
Investment income    8,259    5,125  
 
Earnings from continuing operations before provision  
  for income taxes    51,800    69,600  
Provision for income taxes    24,800    32,300  
Earnings from continuing operations    27,000    37,300  
Earnings (loss) from discontinued operations    (22,900 )  1,500  
Extraordinary loss from debt retirement    (3,600 )  --  
Net Earnings   $ 500   $ 38,800  
Earnings (loss) per share of common stock:  
Earnings from continuing operations:  
  Basic   $ 2.47   $ 3.30  
  Diluted   $ 2.41   $ 3.29  
 
Earnings (loss) from discontinued operations:  
  Basic   $ (2.09 ) $ .13  
  Diluted   $ (2.05 ) $ .13  
 
Extraordinary loss from debt retirement:  
  Basic   $ (.33 ) $ --  
  Diluted   $ (.32 ) $ --  
 
Net earnings:  
  Basic   $ .05   $ 3.43  
  Diluted   $ .04   $ 3.42  
 
Weighted Average Number of Shares:  
  Basic    10,927    11,299  
  Diluted    11,195    11,344  

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


NORTEK, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Amounts in thousands)

For the
Nine Months Ended
September 29, September 30,
2001
 2000
(Unaudited)
 
Cash flows from operating activities:            
     Net earnings from continuing operations   $ 27,000   $ 37,300  
     Earnings (loss) from discontinued operations    (22,900 )  1,500  
     Extraordinary loss from debt retirement    (3,600 )  --  
     Net earnings   $ 500   $ 38,800  
 
Adjustments to reconcile net earnings to cash:  
     Depreciation and amortization expense    43,936    41,236  
     Non-cash interest expense    4,571    3,111