Lennox International Inc. announced its fourth quarter and full-year 2002 earnings, in line with previous guidance.
LII’s net sales for the fourth quarter of 2002 decreased 3 percent to U.S. $704 million. Excluding the effects of the heat transfer joint venture and the activities of other non-core operations, company-wide sales, in constant currencies, were up 2 percent. Operating income was $13 million, contrasted with an operating loss of $43 million last year, reflecting improvements in all of LII’s business segments. Operating margins expanded to 1.8 percent.
Net income was $5 million, or $0.08 per diluted share, compared with a loss in the prior year of $40 million, or $0.72 per diluted share. Changes in foreign exchange rates benefited earnings per share in the fourth quarter by $0.01. The prior year fourth quarter net loss included restructuring charges of $28 million, net of tax, or $0.50 per share.
Sales for full-year 2002 were $3 billion, down 3 percent from 2001, with changes in foreign exchange rates benefiting revenues by less than 1 percent. Sales in the company’s core businesses, in constant currencies, were down less than 1 percent. Favorable weather supported LII’s domestic residential businesses in 2002, while demand from commercial customers for heating, cooling, and refrigeration equipment and services remained soft. Sales outside the U.S. and Canada accounted for 13% of total LII revenues.
"Despite a challenging global economic environment, LII made dramatic progress improving financial performance in 2002," said Bob Schjerven, chief executive officer. "We performed in line with our recent guidance, while forging the structure of a strong, focused company poised to deliver enhanced shareholder value going forward."
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