Magnetek reports robust quarter

Menomonee Falls-based Magnetek Inc. reported fiscal second quarter gross profit of $10.5 million or 74 cents per share, up from $8.5 million, or 44 cents per share, in the same period a year ago.
The increase in gross profit was mainly due to higher sales volume of products with material handling and mining applications, and improved margins in the company’s elevator products due to new product introductions and cost reduction actions.
Magnetek’s quarterly net sales of $29.5 million increased 13 percent over last year.
"We’re very pleased with the performance of our business during the second quarter, highlighted by strong year-over-year growth in sales, gross profit, operating profit, and cash flow. Most of our end markets showed signs of continuing steady expansion during the second quarter, particularly on the industrial side of our business. Second quarter sales into material handling markets increased 35 percent year-over-year to nearly $20 million, while sales into mining markets increased more than 50 percent over last year’s second quarter to more than $2.5 million," said Peter McCormick, Magnetek’s president and chief executive officer. "Manufacturing continues to be an area of strength in the U.S. economy and we expect that trend to continue during 2012. We continue to believe we are well positioned to outpace overall economic growth rates with our continuing focus on market share gains, new product introductions, and new market penetration."