Commercial foodservice equipment maker The Middleby Corporation had net earnings for the third quarter of 2011 were $23,461,000 on net sales of $218,720,000, compared to 3Q 2010 net earnings of $20,602,000 on net sales of $177,793,000.
3Q 2011 financial statements include the results of recent acquisitions of food processing equipment companies Danfotech Inc., Maurer-Atmos, and Auto-Bake Proprietary Ltd. Results from these acquisitions reduced net earnings by $0.8 million in the quarter.
Net sales increased 23.0% in the third quarter; they increased 5.9% when excluding the impact of acquisitions. This increase included:
• 10.1% sales increase by the Commercial Foodservice Equipment Group
• 25.6% sales decrease by the Food Processing Equipment Group
Gross profit increased to $87.3 million from $70.7 million. The gross margin rate improved to 39.9% from 39.8%. The improvement in the gross margin rate reflects efficiency gains from the consolidation of production facilities and other integration initiatives, offset by lower margins at newly acquired companies and the impact of sales mix.
Operating income increased 16.2% to $37.2 million, up from $32.0 million, on higher revenues.
Selim A. Bassoul Chairman and CEO said, “At our Commercial Foodservice Equipment Group, industry conditions remained positive during the quarter and we realized continuing revenue gains resulting from growth in international business and with our chain customers. We continue to develop new business with restaurant chain customers as they look to utilize our cooking technologies to lower their operating costs and improve the efficiency of their restaurant operations."
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