Middleby Reports Big 3Q Sales Gains
Nov 6, 2013
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The Middleby Corp., worldwide manufacturer of commercial foodservice appliances, food processing equipment, and residential kitchen appliances, reported third quarter net sales of $360,013,000, up 39.7% from $257,699,000 in the third quarter of 2012.

Net earnings for 3Q 2013 were $40,942,000, up from $29,769,000 in 3Q 2012.

Sales from acquisitions amounted to $71.8 million or 27.9% during 3Q 2013; excluding acquisitions, sales were up 11.8% in the quarter.

Gross profit was $141.4 million in 3Q 2013, from $100.4 million in 3Q 2012, reflecting higher sales volumes. The gross margin rate was 39.3% in 3Q 2013, up from 39.0% in 3Q 2012. Middleby said higher margins in its Commercial Foodservice business segment offset lower margins in Food Processing and Residential Kitchen Equipment.

Operating income increased 42.4% to $67.5 million in 3Q 2013, from $47.4 million in 3Q 2012.

Middleby's Commercial Foodservice Equipment Group saw net sales increase 16.2% in 3Q 2013 compared to 3Q 2012. Excluding acquisitions, net sales were still up 11.7%.

Middleby's Food Processing Equipment Group sales were up 20.5% in the quarter--excluding acquisitions the increase was 12.2%.

Middleby's Residential Kitchen Equipment Group sales were $58.0 million. Residential Kitchen Equipment was established on Dec. 31, 2012 when Middleby acquired Viking Range, maker of professional-style home appliances.

"In the third quarter, at our Commercial Foodservice Equipment Group, we realized continued growth with chain restaurant customers adopting our new innovative technologies resulting in improvements in the efficiency of restaurant operations," said Selim A. Bassoul, chairman and CEO. "We also continued to realize growth in international markets as our customers expand restaurant operations in emerging markets."

Bassoul said the company continued to make progress on its integration of Viking--including changes in distribution and new product development. "We continued to integrate several former U.S. distributors into the Viking organization," Bassoul said. "Now over 50% of the domestic revenues are managed through Viking owned distribution. These distribution changes will allow us to control and enhance critical aspects of the sales, marketing and customer support processes."

The reorganization of domestic distribution channels will continue, and Bassoul said the company has a "significant pipeline" of new Viking products and product enhancements that will be introduced before the end of 2013. "This includes a complete new lineup of ranges, cooktops, built-in refrigeration and ventilation," Bassoul said.

Middleby results for the first nine months of 2013:

* net sales were $1.051 billion, up from $747 million in the first nine months of 2012
* gross profit was $399 million, from $290 in the first nine of 2012
* net earnings were $104 million, from $83 million in the first nine of 2012

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