Global foodservice appliance producer Middleby Corp. reported first quarter net earnings of $13,762,000 or $0.74 per share on net sales of $160,683,000, down from the prior years 1Q net earnings of $14,067,000 or $0.77 per share on net sales of $181,546,000.
Much of the 2010 decrease was a reflection of an unusually large order filled in 2009.
Net sales decreased 11.5% in the first quarter. Excluding the impact of acquisitions, sales declined 15.4% in the quarter. Sales by the Commercial Foodservice Group declined 16.7% for the quarter, while sales of the Food Processing Group increased 56.6% for the quarter.
Middleby said Commercial Foodservice sales in the prior year reflected a large order with a major restaurant chain customer to support the rollout of a new menu program. Excluding this unusually large order, sales for the Commercial Foodservice Group were up 4.1% and total net sales increased 8.6%.
Sales in the Food Processing Group reflect general improvement in economic conditions and the release of orders that had been deferred due to uncertain economic environment in 2009.
Gross profits decreased to $63,473,000 from $68,770,000 in the previous year.
"First quarter results reflected a difficult comparison to the prior year due to a large order to a major chain customer," said Selim A. Bassoul, Middleby chairman and CEO. "While industry conditions still remain challenging, our restaurant customers are generally beginning to report improving results which may result in improved industry conditions later in the year.”
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