Magnetek’s revenues soar

Menomonee Falls-based Magnetek Inc. reported fiscal first quarter net income of $1.7 million, or 5 cents per share, up from $271,000, or 1 cent per share, in the same period a year ago.
The company recorded quarterly revenues of $29.2 million, up 17 percent from $24.9 million a year earlier.
The increase in sales from the prior year quarter reflects year-over-year sales growth in the company’s served material handling, elevator and mining markets.
"Most of our end markets continued to show signs of moderate expansion during the first quarter, particularly on the industrial side of our business. The only exception was in the renewable energy market where, as we expected, sales of wind inverters declined sequentially from prior quarter levels. While there is increasing uncertainty over future economic activity in the U.S. and a growing fear of recession, manufacturing activity remains one of the few bright spots of the U.S. economy," said Peter McCormick, Magnetek’s president and chief executive officer. "Our incoming order rate in the first quarter does not indicate any sign of a slowdown in our business. In fact our first quarter bookings were up 14 percent sequentially over our fourth quarter, so that should translate into another solid performance in the current quarter. Longer-term, we remain confident in our strategic initiatives for growing our business, and as a result, we believe we are well positioned to outpace overall economic growth rates going forward. At the same time, we’re well aware that economic conditions remain dynamic and very volatile. We’re mindful that our business conditions could deteriorate in the future, and we’re well prepared to respond accordingly if that happens.”