York International Corporation, an HVAC&R company, announced third quarter 2002 net income of U.S. $26.0 million, or $0.65 per share. Balance sheet performance was outstanding in the quarter and overall debt was down $228 million or 26 percent compared to September of 2001. The company exceeded its cash expectations and reduced debt by $126 million since December 2001.
York reported sales for the third quarter of $946.8 million, up 0.2 percent from prior year third quarter sales of $944.5 million. Growth in service and residential unitary products was offset by a reduction in chiller shipments in North America and lower equipment sales in Latin America. Earnings before interest and taxes (EBIT) in the third quarter of 2002 was $45.3 million. For the third quarter of 2001, EBIT of $38.5 million included charges and operating expenses of $14.7 million related to cost reduction initiatives and a discontinued product line. Excluding these items, EBIT for the third quarter of 2001 was $53.2 million.
Interest expense improved from $16.2 million in 2001 to $11.7 million in 2002 due to lower average debt levels and lower interest rates. YORK also improved its tax rate from the prior year to 22.5 percent due to successful tax planning strategies, and the impact of the adoption of FAS 142. Third quarter net income was $26.0 million, or $0.65 per share. In the third quarter of 2001, net income, excluding the special items mentioned above, was $25.9 million or $0.66 per share. Inventory turns and days sales outstanding improved, reflecting working capital improvements and the significant emphasis placed on return on invested capital.
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