Lennox International Inc. reported financial results first quarter 2013 revenue of $668 million, up 9% from the first quarter of 2012.
Lennox International adjusted its financial results for discontinued operations related to previously announced plans to sell its Service Experts business. The transaction was completed March 22, 2013.
Gross profit in 1Q 2013 was $162 million, up 15% from 1Q 2012. Gross margin was 24.2%, up 130 basis points from 22.9% in 1Q 2012. Higher volumes, a good price mix, and lower materials costs helped boost profit, but were partially offset by investments in distribution.
Income from continuing operations in 1Q 2013 was $17.0 million, up from $9.8 million, in 1Q 2012.
On a GAAP basis, income from continuing operations for the first quarter was $15.8 million, up from $9.3 million in 1Q 2012.
The loss from discontinued operations--the divested Service Experts business--in 1Q 2013 was $7.8 million, compared to a loss of $15.4 million in 1Q 2012.
"Growth continued across all three of our businesses in the first quarter with strong operational execution driving revenue up 9% and EPS up more than 70%," said Todd Bluedorn, chairman and CEO of Lennox International. "Our Residential business continued to lead our growth on the strength of new construction and our growth initiatives in the replacement market. Residential revenue was up 15% in the first quarter and margin expanded 250 basis points to drive segment profit up 86%. In our Commercial business, revenue was up 4%, led by strong growth in national account services. Commercial profit was up 34% as margin expanded 150 basis points. Refrigeration revenue was up 4% at constant currency on double-digit growth in Asia Pacific and South America. Refrigeration margin expanded 100 basis points, and profit grew 18%.
Lennox International revised its revenue growth guidance, from the previously announced 2-6% to a range of 3-6%.
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