Magnetek 4Q earnings drop

Special to The Freeman

March 12, 2014

MENOMONEE FALLS – Magnetek Inc. on Wednesday reported a drop in fourth-quarter net income.

The company said net income fell to $373,000, or 11 cents a share, from $1.02 million, or 31 cents, a year earlier. Recent results include a loss of $365,000, or 11 cents a share, due to severance, professional fees and finalization of the company's pension expense for 2013, the Menomonee Falls-based manufacturer of power and motion-control systems said.

“We experienced continuing softness in our end markets during the fourth quarter, particularly in material handling markets, which we believe peaked at least in the near-term in the second half of 2012. The year-over-year decrease in material handling sales is representative of continuing economic uncertainties, which resulted in a lack of larger project business for us throughout much of 2013,” said Peter McCormick, Magnetek’s president and CEO.

Before the gains and losses, Magnetek earned a profit from continuing operations of $738,000, or 23 cents a share, down 9.8 percent from $818,000, or 25 cents, a year ago. Additionally, revenue declined 15 percent to $25.2 million from $29.7 million.

Sales of products for material handling applications fell $4.2 million to $18.6 million, the company said.