Lennox International reported third-quarter net income of $33.8 million, down 19% from $41.8 million in the same period last year. Revenue for the third quarter was $923 million, up 13% from $818.2 million in the third quarter of 2010.
"Revenue from our residential business was up slightly in the third quarter, led by a 4% increase in shipments as well as price realization, although product mix was down from a year ago when the federal government's $1,500 tax credit for high-efficiency cooling and heating products was still in place," said Todd Bluedorn, CEO of Lennox International. “Overall, the company had strong cash generation in the third quarter with free cash flow of $132 million and repurchased $55 million of stock and paid out $10 million in dividends.
“For 2011, we now expect company revenue growth of 7% to 9% and are narrowing our guidance range for adjusted EPS to $2.00 to $2.15 for the year."
Third-quarter revenue in the Residential Heating and Cooling business segment was $374 million, up 1% from $371 million in the prior-year quarter. Segment profit totaled $29 million, compared with segment profit of $39 million in the prior-year quarter.
Revenue in the Commercial Heating and Cooling business segment was $199 million, up 13% from $176 million in the prior-year quarter. Total segment profit was $29 million, compared with segment profit of $25 million in the prior-year quarter.