Magnetek reports strong quarter ahead of acquisition

Menomonee Falls-based Magnetek Inc. today reported second quarter net income of $3 million, or 83 cents per share, up from $2.3 million, or 68 cents per share, in the second quarter of 2014.
Magnetek, which has about 340 employees, manufactures digital power and motion control systems used in applications including material handling, elevator, mobile hydraulic and mining.

The company’s second quarter operating income was $3.2 million, up from $2.8 million in the same period a year ago.

Revenue totaled $28.3 million, up from $27 million in the second quarter of 2014.

The company attributed the revenue increase to higher sales to the material handling markets, which were up $1.3 million year-over year. Operating income and earnings per share both increased due to higher sales volume, lower pension expense and lower tax provisions.

“Most of our end markets remained healthy throughout our second quarter, and we achieved organic sales growth of 5 percent over last year’s second quarter,” said Peter McCormick, president and chief executive officer. “We expanded our profit margins on a year-over-year basis, with increased gross profit, operating profit, and net income.”

Magnetek last week announced it has entered an agreement to be acquired by Amherst, NY-based Columbus McKinnon Corp. for about $189 million. The transaction is expected to close within 90 days.

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