HVAC maker Lennox International Inc. reported second quarter 2012 revenue of $934 million, up 2% from second-quarter 2011.
"Continued strong execution drove 11% revenue growth and 19% profit growth in our Residential business in the second quarter," said Todd Bluedorn, chairman and CEO of Lennox International. "Residential again realized strong growth in both new construction and replacement business, with warm weather comparable overall to the second quarter a year ago."
Bluedorn said Commercial business revenue was up 5% at constant currency, growing in North America and Europe, and margin expanded 130 basis points to 15.0%. Refrigeration revenue was flat due to softness in Australia and Europe. Service Experts revenue was down 8%.
"Looking ahead for the company overall, we remain cautious on the global macroeconomic environment for the second half of the year but continue to be encouraged by the strength in our Residential and Commercial businesses, and Refrigeration backlog remains solid," Bluedorn said.
Financial results are adjusted for the company's sale of its Hearth business in April 2012.
Residential Heating & Cooling business segment revenue in 2Q 2012 was $412 million, up 11% from 2Q 2011. Segment profit was $42 million, up 19%. Results were primarily impacted by higher volume, favorable price, and sourcing and productivity initiatives, with offsets from lower mix and a less favorable warranty reserve adjustment.
Commercial Heating & Cooling business segment revenue was $201 million, up 1% (up 5% at constant currency). Segment profit was $30 million, up 11% from 2Q 2011. Results were primarily impacted by higher volume, favorable price/mix, and sourcing and productivity initiatives, with offsets from higher freight expenses and negative foreign exchange.
Refrigeration business segment revenue was $207 million in 2Q 2012, down 5% from 2Q 2011. Segment profit was flat at $21 million.
Lennox now expects revenue growth of 2-5% at actual currency.
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