Magnetek reports increase in 2Q net income

Special to The Freeman

August 5, 2014

MENOMONEE FALLS — Magnetek Inc. said Tuesday its second-quarter net income rose to $2.30 million, or 70 cents a share, from $1.17 million, or 36 cents, a year ago.

Excluding losses from discontinued operations, Magnetek's earning rose to $2.51 million, or 77 cents a share, from $1.19 million, or 37 cents, a year earlier, according to the Menomonee Falls-based manufacturer of power and motion-control systems.

Revenue remained about the same at $27 million.

“Compared to the first quarter, sales for material handling applications, our largest served market, were up nearly 10 percent, while sales into elevator markets were up 15 percent. In addition, our second quarter gross margin increased to 36 percent of sales, and our operating profit margin exceeded our stated target of 10 percent,” said Peter McCormick, Magnetek’s president and chief executive officer.

“In summary, we challenged the organization to improve our operating performance, and our people responded very well, as we not only saw healthy growth in our business, but also controlled our costs and managed our assets quite well,” he added.