Middleby sees 3Q growth despite slow domestic sales

Business Wire

ELGIN - The Middleby Corp. reported strong international sales during the third quarter of 2016 offset a softening of domestic sales, leading to an increase $125 million for the quarter.

The manufacturer of equipment for the commercial food service, food processing and residential kitchen industries reported third quarter net sales of $574.2 million, up from $449 million for the same period in 2015. Net earnings for the third quarter were $75,856 million, or $1.33 per share, compared to of $48.8 million, or 86 cents per share, last year.

Chairman and CEO Selim A. Bassoul noted while sales increased in international markets in its commercial food service division, slower general market conditions in the U.S. and delayed purchases from several restaurant chains led to the decrease domestically.

"Despite the third quarter sales results, we continue to see strong development activity with our restaurant chain customers adopting our innovative equipment solutions and anticipate improved sales growth in the fourth quarter at this segment," Bassoul said.

The company's Food Processing Equipment Group saw strong sales growth during the period, Bassoul said. Sales in the Residential Kitchen Equipment Group, however, declined primarily due to the company's recent acquisition of U.K. company Aga.

"We continue to focus on our profit improvement initiatives at the recent acquisition of AGA Rangemaster Group and its related portfolio of premium residential brands, including AGA, Rangemaster, La Cornue, Marvel, Mercury, Falcon, Rayburn, Stanley, Grange and Fired Earth," Bassoul said.