Middleby Corp. sees solid 1Q sales growth

ELGIN - Strong demand from its restaurant business helped boost The Middleby Corp.'s net sales and earnings for the first quarter of 2016.

Net earnings for the first quarter were $54.5 million, or 96 cents diluted earnings per share on net sales of $516.3 million, as compared to the prior year first quarter net earnings of $38.2 million, or 67 cents diluted earnings per share on net sales of $406.6 million.

"We realized solid sales growth at the Commercial Foodservice Equipment Group in the first quarter as business with our restaurant chain customers remained strong," said Middleby Chairman and Chief Executive Officer Selim A. Bassoul. "In the quarter we were pleased to see sales return to double digit growth in the international markets, which had been challenging in the prior year due to market conditions and substantial volatility in foreign exchange rates."

Bassoul noted sales growth for the manufacturer of commercial food service, food processing, and residential kitchen equipment industries was affected in part by a manufacturing consolidation initiative at some of its baking that resulted in a sales disruption.

"We continue to focus on our profit improvement initiatives at the recent acquisition of AGA Rangemaster Group plc and its related portfolio of premium residential brands, including AGA, Rangemaster, La Cornue, Marvel, Mercury, Falcon, Rayburn, Stanley, Grange and Fired Earth," Bassoul said. "We remain on track with our cost savings targets and anticipate this business will reach our target double digit EBITDA margins in the second half of this year as we realize the benefits from efforts to improve efficiencies at this acquired business."