Middleby reported strong results for first-quarter 2014, with
earnings of $1.78 per share versus $1.65 earned in the year-ago
quarter. Quarterly revenues rose 14% year over year to $372.5
million, primarily driven by inorganic growth. The acquisition of
Viking along with Celfrost, Wunder-Bar and Market Forge are proving
beneficial to the company. Moreover, Middleby is also increasing
its market share through organic growth, with a hike in all the
segments. The company's latest move of announcing stock split will
be advantageous to shareholders. However, Middleby's overseas
operations expose it to various risks including social, political
and those related to foreign exchange transactions. Additionally,
Middleby's over dependence on food processing units is a reason for
caution. The volatility of raw material prices also impacts the
company strategies. Based on these factors, we prefer to have a
balanced view on the stock and lower our recommendation to Neutral
Elgin, IL-based The Middleby Corporation (MIDD) provides
cooking, warming, food preparation and packaging equipment to
commercial, industrial processing and residential markets. Formerly
known as Oven Company, it was acquired by TMC Industries Ltd. in
1983. Post the acquisition, the company's name was changed to
Middleby Corporation in 1985. The company operates in three main
Commercial Foodservice Equipment Group: This segment
manufactures cooking equipment for restaurants and institutional
kitchens. The products include conveyor ovens, proofing ovens,
speed cooking ovens and induction cooking equipment. The equipment
in this segment are sold under brands like Combi , Lang , MPC ,
PrefectFry , CookTek , Southbend and Wells .
Food Processing Equipment Group: This segment manufactures
equipment for the food processing industry. It offers a variety of
products including batch ovens, processing ovens, defrosting and
packaging equipment among others. The products are sold under
various brands such as Auto-Bake , Alkar , Cozzini and RapidPak
Residential Kitchen Equipment Group: This segment manufactures
equipment for the residential market, recording the revenues for
Viking and Brigade. It offers ovens, dishwashers, cooktops,
microwaves and other outdoor equipment.
This segment was formed after the company acquired Viking range
in December last year.
The Middleby Corporation (MIDD): Read the Full
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