Menomonee Falls-based Magenetek, Inc. today reported first quarter net income of $1 million, or 31 cents per share, up from $472,000, or 14 cents per share, in the first quarter of 2013.
Revenue was $24.1 million, down 4 percent from $25 million in the same period a year ago.
The company, which manufactures digital power and motion control systems used for material handling, people moving and energy delivery, attributed the decline in revenue to lower sales of elevator and mining products. The net income increase was mainly due to better gross margins resulting from increased efficiency and lower overhead expenses, as well as fewer pension expenses.
“Challenging conditions persisted in most of our served markets during the first quarter, particularly in mining markets,” said Peter McCormick, president and chief executive officer. “We also experienced moderating demand in our served elevator markets due to customer inventory adjustments as well as seasonal factors in material handling markets, all of which resulted in a year-over-year decline in sales. However, our profitability improved significantly over last year, as we executed efficiently, drove our gross margins higher, and benefitted from reduced pension expense.”
