HVAC equipment maker York International reported net income of U.S. $15.4 million, or $0.37 per diluted share, for the fourth quarter of 2004.
Commenting on the results, C. David Myers, president and CEO, said, "In 2004, our business was challenged by dramatic material cost increases and the impact of our implementation of YorkConnect; nevertheless, we executed well and are pleased with the progress we have made on our strategic priorities."
Net sales increased 6.8 percent from the fourth quarter of 2003 to $1.2 billion. Asia and UPG delivered strong double-digit increases over the fourth quarter of 2003. Income from operations was $25.2 million in the fourth quarter of 2004, and reflects the impact of increased material costs, inefficiencies in service in the Americas, and increased investments in IT infrastructure, the company said.
Net sales for the full year increased 10.6 percent to a record $4.5 billion, led by double-digit increases in Global Applied and UPG. Income from operations for the full year was $128.2 million and includes a charge of $20 million to record the estimated liability associated with the UPG furnace remediation program.
According to York, the targeted benefits from the 2003 restructuring actions were overachieved. These benefits, the success of new products, volume leverage, and productivity gains were offset by significant material cost increases, inefficiencies from the deployment of YORKConnect, and increased investments in VISTA and IT infrastructure. For the full year, the company reported net income of $81.6 million, or $1.96 per diluted share. Solid balance sheet management led to a reduction in debt and the receivables securitization program of $62.8 million, the company said.
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