Wednesday, Lennox International Inc. (LII), a manufacturer of products for heating and air conditioning, reported a decrease in second quarter earnings on lower revenues. The company backed its adjusted earnings estimate for the full year, while reducing the revenue outlook.
Net income for the Richardson, Texas-based company slipped to $51.2 million or $0.88 per share, from $60.3 million, or $0.85 per share, a year ago.
Adjusted net income was $59.2 million, or $1.02 per share, down from $62.2 million, or $0.87 per share, in the same period last year. On average, four analysts polled by First Call/Thomson Financial expected the company to earn $0.91 per share. Revenue declined 4% to $1.00 billion in the quarter from $1.04 billion in the same period last year, and was also below the Street estimate of $1.02 billion. "Excluding the positive impact of foreign exchange, revenue would have been down 7%," Lennox said.
The company attributed the decline in quarterly revenue to lower volumes in the Residential Heating & Cooling and Commercial Heating & Cooling businesses.
During the second quarter, the company repurchased 3,573,881 shares and completed its $500 million share repurchase program. The company also announced approval of a new $300 million share repurchase program.
Year-to-date, the company reported net income of $57.5 million, or $0.95 per share, down from $68.9 million, or $0.97 per share, in the corresponding period last year. Net sales declined to $1.77 billion from $1.83 billion in the comparable period last year.
Lennox also reaffirmed its full-year 2008 adjusted earnings estimates in the range of $2.85 to $3.00 per share. Currently, analysts expect the company to earn $2.79 per share.
Further, the company lowered the full-year GAAP earnings outlook to a range of $2.61 to $2.76 per share from the previous target of $2.73 to $2.88 per share.
Lennox currently expects 2008 revenue to be flat to down 2%, compared to the previous estimate of flat to up 2%.
LII is trading up $4.31 or 13.06% at $37.31 on a volume of nearly 184 thousand shares.
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