Viking Range and its corporate parent, the Middleby Corp., reported continued sales growth in the final quarter of 2014, but Middleby’s stock price tumbled in early trading today after its earnings fell short of investor expectations.
The fourth-quarter earnings report, released after markets closed Tuesday, showed net earnings up a modest 3.6 percent over the same quarter in 2013 to $51.7 million, or $0.91 per share.
That disappointed Wall Street expectations of the company, which has been delivering remarkable growth over the past decade. Analysts had expected Middleby to report earnings of around $0.99 per share.
Shares in the company were down about 7 percent in morning trading. A conference call with investors was scheduled for 9:30 a.m. today.
Sales at Viking were up 9.2 percent in the fourth quarter and 12.8 percent for the 2014, but the cost of rolling out new products and a new, more generous warranty program held down profit margins at the upscale kitchen appliance manufacturer.
The earnings release didn’t break out other financial information for Viking.
The Elgin, Illinois-based Middleby Corp. purchased the previously privately owned Viking Range Corp. at the end of 2012.
In a press release, Middleby CEO Selim Bassoul said that Viking had completed the acquisition and reorganization of its North American distribution and sales organization in the past year.
Previously, Viking had used a network of independent distributors. Middleby had moved to buy up those distributors during 2013 and 2014, Bassoul said, and had since reorganized the division “into one single business unit with integrated sales, customer service, technical service and distribution capabilities.”
Bassoul also touted a number of new home kitchen products launched by Viking in the past year, including a new premium 7-series range and a new lineup of cooktops. Bassoul said the company is currently gearing up to release a new line of built-in refrigeration and will also be rolling out a new TurboChef rapid cook oven for the residential market as well as a top-end Tuscany range.
• Contact Bryn Stole at 581-7235 or bstole@gwcommonwealth.com.
