This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Magnetek Announces Fourth Quarter And Fiscal 2011 Results

Magnetek, Inc. (“Magnetek” or “the Company”) (NYSE: MAG) today reported the results of its 2011 fiscal year and fourth quarter ended July 3, 2011.

Fourth Quarter Results

In its fourth quarter of fiscal 2011 Magnetek recorded revenue of $31.1 million, a 28% increase from the fourth quarter of fiscal 2010 and a 12% sequential increase from the third quarter of fiscal 2011. The increase in sales from the prior year quarter reflects year-over-year sales growth in the Company’s served material handling, elevator and mining markets. As a result, fiscal 2011 fourth quarter earnings per share from continuing operations more than doubled to $.05 per share over prior year fourth quarter earnings per share from continuing operations.

“Our fourth quarter sales result exceeded our expectations, highlighted by record sales of more than $31 million. While some believe the economic recovery in the U.S. is stalling, most of our end markets continue to show signs of steady growth and recovery, particularly on the industrial side of our business,” said Peter McCormick, Magnetek’s president and chief executive officer. “We’re forecasting continued moderate economic expansion and, as a result, we’ve accelerated the level of investments we’re making in product development and sales channel expansion aimed at driving future sales growth. We continue to believe we are well positioned to outpace overall economic growth rates with our continuing focus on both new product introductions as well as new market initiatives,” said McCormick.

Gross profit amounted to $10.4 million (33% of sales) in the fourth quarter of fiscal 2011 versus $7.2 million (29% of sales) in the same period a year ago. The increase in gross profit and gross margin was mainly due to higher sales volume of products with material handling and mining applications.

Total operating expenses, consisting of research and development (“R&D”), pension expense and selling, general and administrative (“SG&A”) costs, were $8.8 million in the fourth quarter of fiscal 2011, compared to operating expenses of approximately $6.3 million in the prior year period. Compared to the prior year fourth quarter, current year operating expenses were impacted by higher R&D expenses, higher sales and marketing expenses, from both volume-related selling expenses and increased payroll-related costs, and increased incentive compensation provisions, partially offset by lower pension expense. The Company also reinstated wage and salary increases and its employer 401(k) matching contributions given the improvement in performance experienced during fiscal 2011.

1 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 0.00%
FB $118.06 0.00%
GOOG $695.70 0.00%
TSLA $222.56 0.00%
YHOO $36.00 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs