The Middleby Corp., owners of Viking Range, this week reported increases in net sales and earnings for the third quarter, which ended Sept. 28.
Net earnings for the quarter were $82.0 million or $1.47 diluted earnings per share on net sales of $724.0 million as compared to the prior year’s third-quarter net earnings of $72.9 million or $1.31 diluted earnings per share on net sales of $713.3 million.
Net earnings in the current and prior year third quarter were negatively impacted by restructuring expenses, acquisition-related inventory step-up charges and facility-consolidation-related expenses. Excluding these items, as well as other non-cash items, adjusted net earnings per share were $1.72 and $1.65 in the 2019 and 2018 third-quarter periods.
Net sales increased 1.5% in the third quarter of 2019 over the comparative prior year period. Sales related to recent acquisitions added 5.8% in the third quarter.
The impact of foreign exchange rates on foreign sales translated into U.S. dollars decreased net sales by approximately 1.1% during the third quarter. Excluding the impacts of acquisitions, closure of a non-core business and foreign exchange rates, sales decreased 2.9% in the third quarter.
Net sales at the company’s Residential Kitchen Equipment Group, which includes Viking, decreased 12.8% in the third quarter of 2019 over the comparative period in the prior year. Excluding the impact of foreign exchange rates and closure of a non-core business, sales decreased 9.6% during the third quarter.
“Within the Residential Kitchen Equipment Group, declines in consumer spending in the appliance market led to reduced demand across many of our brands,” said said Timothy FitzGerald, chief executive officer. “Although Viking did realize a decline in the quarter, the brand is continuing to outperform the broader market. We are seeing consistent market share gains with our dealer partners. We have added new dealers to support our portfolio of premium brands and also continued to increase the number of displays on showroom floors. We are making ongoing investments for growth by further strengthening our sales organization and enhancing our award-winning new product offerings. During the third quarter, we further extended our lineup of built-in refrigeration under the Viking brand, which presents a significant market opportunity. We also continue to invest in our residential showrooms, which feature all of the Middleby premium brands.”