Magnetek, Inc. (NASDAQ: MAG):
- Net income from continuing operations increased 48% to nearly $2.3 million, or $.70 per diluted share, compared to prior year net income from continuing operations of $1.5 million, or $.48 per diluted share.
- Second quarter net sales totaled $29.0 million, down from $31.1 million in the prior year quarter, due to lower sales of wind power inverters.
- Cash balances increased by $1.3 million during the second quarter to $27.3 million after contributing $3.9 million to pension plan.
Magnetek, Inc. (“Magnetek” or “the Company”, NASDAQ: MAG) today reported the results of its second quarter of fiscal year 2012, ended July 1, 2012.
Second Quarter ResultsIn the second quarter of fiscal 2012, Magnetek recorded revenue of $29.0 million, a slight sequential increase from the first quarter of fiscal 2012, but a 7% decrease from the prior year quarter. The decrease in sales from the prior year quarter reflects lower sales of wind power inverters, partially offset by sales growth of products for material handling and mining markets. Despite the lower sales, second quarter pre-tax income from operations increased more than 50% to $2.5 million from $1.6 million in the comparable quarter last year, due mainly to lower operating expenses. “Sales into our traditional served markets continued to grow at a moderate pace during the second quarter. Conditions in those markets remained largely favorable during the period, particularly in material handling, where our sales increased to nearly $19 million during the quarter,” said Peter McCormick, Magnetek’s president and chief executive officer. “Similar to our first quarter, growth in our industrial markets was offset by declining sales of wind inverters, as renewable energy market conditions remain quite challenging. However the favorable shift in our sales mix toward our traditional markets helped us generate gross margins of 35% in the second quarter. In addition, we improved our liquidity by increasing our cash balances to more than $27 million,” said Mr. McCormick.