Commercial appliance maker The Middleby Corporation reported net earnings for the second quarter of 2012 were $31,045,000 on net sales of $260,040,000, compared to 2Q 2011 net earnings of $19,628,000 on net sales of $210,855,000.
Middleby is a worldwide manufacturer of commercial foodservice and food processing equipment.
Net sales in 2Q 2012 were up 23.3% from 2Q 2011. Sales from acquisitions amounted to $38.8 million or 18.4% in the quarter. Excluding the impact of acquisitions, 2Q sales increased 4.9%.
Net sales at the company's Commercial Foodservice Equipment Group were up 10.2% in 2Q 2012 from 2Q 2011. Excluding the impact of the acquisitions completed in the second quarter of 2011, net sales of Commercial Foodservice Equipment increased by 5.4%.
Second quarter net sales in the company's Food Processing Equipment Group increased 94.8%. Excluding acquisitions, sales increased 2.1%.
Gross profit in 2Q 2012 increased to $101.8 million from $85.3 million and the gross margin rate decreased from 40.5% to 39.2%. The decline in the gross margin rate reflects a higher mix of sales from the Food Processing Equipment Group with lower gross margins, due in part to recent acquisitions.
Operating income was up 28.7% in the second quarter to $45.3 million from $35.2 million in the prior year quarter.
"In the second quarter, at our Commercial Foodservice Equipment Group, we realized continued growth reflecting increased sales in emerging markets and with chain restaurant customers as they upgrade equipment and adopt new technologies to improve the efficiency of store operations," commented Chairman and CEO Selim A. Bassoul. "This growth was offset in part by lower sales in Europe due to difficult market conditions which we anticipate will continue in the near term."
Mr. Bassoul also said, "We were very pleased to have entered into a new and expanded credit facility. This facility provides for increased financing availability to fund growth initiatives and greater flexibility to meet the business needs for our broadened scope of operations as we continue to expand globally."
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