Nortek Reports Q1 2011 Results Amid Challenging Market Conditions

Nortek reported a 13% increase in first-quarter net sales to $489 million, driven partly by prior acquisitions, while operating earnings declined due to challenging residential and commercial construction markets. The company noted declines in U.S. housing starts, new home sales, and non-residential construction activity.

“In the first three months of 2011, U.S. housing starts decreased by 10% compared to the prior year and new home sales decreased by 18% over the same period. Existing home sales fell by 2% while spending on residential improvements fell nearly 10%. On the commercial construction side, the non-residential market declined by 12.5% in the first quarter compared to the same period last year.”

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