Sales up, earnings down at Lennox International
HVAC company Lennox International, which yesterday announced it would build a new $45 million manufacturing facility in Mexico, said earnings dropped in the second quarter while sales rose slightly.
Earnings were down 11.7 percent to $60.3 million from $68.3 million last year. Sales were up 3 percent to $1.04 billion from $1.01 billion last year.
In the company’s residential heating and cooling segment, sales decreased 8 percent to $489 million from $543 million last year. Profit margins also fell slightly in the residential sector.
“These results reflect the softness in the residential new construction market and unseasonable weather,” the company said in a statement. “In particular, the hearth products business is more exposed to residential new construction and was disproportionately impacted.”
The company announced yesterday it will build a new manufacturing facility for its ‘Merit’ series air conditioners and heat pumps, moving production from Marshalltown, Iowa, and Grenada, Mo., to Saltillo, Mexico. The products are manufactured under the name LII United Products.
The company will continue to manufacture furnaces, “Elite” series air conditioners and “Dave Lennox Signature Collection” products in Marshalltown, Iowa.