The Middleby Corp. reports first quarter results
The Middleby Corp. reported first-quarter earnings of $65.4 million.
The Elgin-based company said it had net income of $1.18 per share. The results fell short of Wall Street expectations.
The food preparation equipment company posted revenue of $584.8 million in the period, which also did not meet Street forecasts. Five analysts surveyed expected $603.5 million.
Middleby shares have decreased 2.5 percent since the beginning of the year. The stock has declined nearly 5 percent in the last 12 months.
"At the Commercial Foodservice Equipment Group, sales were impacted by the strategic changes in our sales organization implemented in the second half of 2017 and completed in the first quarter of 2018," said Chairman and CEO Selim A. Bassoul.
"At our Residential Kitchen Equipment Group, we were very pleased to report 5 percent sales growth at the Viking brand in the first quarter. Incoming orders outpaced first quarter sales at a double digit growth rate and we anticipate consistent growth throughout the remainder of 2018. We believe the substantial investments made over the past several years in new products, quality, service and sales have repositioned Viking for long-term profitable growth," he added.
And at the Food Processing Equipment Group, he said they had several anticipated orders not materialize. "The decline in revenues reflects the significance of large projects on this business segment, which has historically resulted in quarterly sales volatility. We anticipate revenues will be impacted for the upcoming quarters due to the delay in a number of larger projects."