Magnetek, Inc. (“Magnetek” or “the Company”, NYSE: MAG) today reported the results of its 2010 fiscal year and fourth quarter ended June 27, 2010.
Fourth Quarter Results
In its fourth quarter of fiscal 2010 Magnetek recorded revenue of $24.3 million, a 22% increase from the fourth quarter of fiscal 2009 and a 27% sequential increase from the third quarter of fiscal 2010. The increase in sales from the prior year quarter reflects accelerating sales growth in the Company’s renewable energy product line, partially offset by lower sales of material handling and mining products. Based on the increased sales volume, the Company’s continuing operations were profitable in the fourth quarter of fiscal 2010.
“We’re very encouraged by both our incoming order rate and our sales growth in the fourth quarter, and are pleased to report that our continuing operations returned to profitability. Each of our primary served markets experienced a sequential increase in sales over third quarter levels. Sales of wind inverters for renewable energy applications grew to nearly $6 million in the fourth quarter and comprised nearly 25% of total company revenue. We continue to believe renewable energy markets present our greatest near-term growth opportunities, as evidenced by our growth rate in the fourth quarter,” said Peter McCormick, Magnetek’s president and chief executive officer.
Gross profit amounted to $7.2 million (29% of sales) in the fourth quarter of fiscal 2010 versus $6.7 million (34% of sales) in the same period a year ago. The increase in gross profit was mainly due to higher sales volume of wind power inverters. The decrease in gross margin as a percentage of sales from the prior year was due to a less favorable sales mix, with lower sales of products for material handling and mining applications. Gross profit in the third quarter of fiscal 2010 was $5.5 million, or 28% of sales.