Lennox International Inc. (NYSE:LII) reported financial results for the third quarter of 2019. The company's tornado references relate to the July 2018 tornado damage at a Residential manufacturing facility in Iowa. Adjusted revenue and profit exclude non-core Refrigeration businesses divested in 2018 and 2019.
The Dallas-based Lennox International reported third-quarter GAAP and adjusted revenue of $1,033 million. GAAP revenue was up slightly, including 7% of negative impact from the tornado and divestitures.
Adjusted revenue, excluding the impact from divestitures, was up 6% to a new third-quarter high. GAAP and adjusted revenue included 2% of negative tornado impact.
GAAP operating income was $157 million, up 8%. GAAP earnings per share from continuing operations proved to be 11% to a third-quarter record $2.94. Total adjusted segment profit rose 15% to a third-quarter record $175 million, and total adjusted segment margin expanded 140 basis points to a third-quarter record 17.0%.
Adjusted earnings per share from continuing operations rose 26% to a third-quarter record $3.34.
On a reported basis, Residential segment revenue was a third-quarter record $638 million, up 7% compared to the third quarter a year ago in which a tornado damaged a major manufacturing facility and disrupted LII’s highest-end business.
"Adverse weather conditions continued in the third quarter with cooler weather than last year in key swing regions and for the U.S. overall," said CEO Todd Bluedorn.
"This was a major headwind to our Residential business following the significantly cooler and wetter weather of the second quarter.
Shares dropped $4.92, or 1.9%, to $248.42
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