Sales down at Lennox International
HVAC manufacturer Lennox International said earnings fell 26.7 percent in the first quarter, to $6.3 million from $8.6 million in the same period last year. Sales also fell, down 3 percent to $767.1 million from $791.5 million in the first quarter of 2007.
Like many other manufacturers of building materials and other large purchase items, Lennox’s earnings suffered from softness in the housing sector.
"As expected, difficult residential new construction and replacement markets challenged our first-quarter results," said Todd Bluedorn, CEO of Lennox International. "Disciplined cost reductions, combined with strong performance in our North America Commercial and Refrigeration businesses, helped offset the headwinds.
Bluedorn also said the company is revising its projected full-year revenue expectations because of the downturn in the housing market. The company expects revenue to stay flat compared with last year or rise by up to 2 percent. Initial projections pegged year-end revenue growth of 2 percent to 5 percent.
Of its four business segments, the company saw revenue growth in commercial heating and cooling -- up 2 percent -- and refrigeration. Revenue from installed services and residential heating and cooling fell in the quarter.