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Lennox International Q4 revenue increased 3% to $834 million

Staff writer |
Lennox International reported fourth quarter and full year 2015 results. Q4 revenue was $834 million, up 3% from the prior-year quarter.

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At constant currency revenue was up 7%. Total segment profit margin was a fourth-quarter record 9.7%, up 30 basi

s points from the prior-year quarter. Diluted earnings per share from continuing operations on an adjusted basis was a fourth-quarter record $1.11, up 9% from $1.02 in the prior-year quarter.

On a GAAP basis, diluted earnings per share from continuing operations was $0.25, compared to $1 in the prior-year quarter, including previously announced non-cash impairment charges in the company's Kysor/Warren refrigerated display case business.

For the full year, revenue was $3.5 billion, up 3%. At constant currency, revenue was up 7%. Total segment profit margin was a record 10.9%, up 80 basis points from the prior year.

Diluted earnings per share from continuing operations on an adjusted basis was a record $5.14 compared to $4.38 in the prior year. On a GAAP basis, diluted earnings per share from continuing operations was $4.11 compared to $4.28 in the prior year.

"2015 was a year of strong growth for Lennox International, led by our Residential business with revenue up 9% at constant currency and segment profit up 18%," said chairman and CEO Todd Bluedorn.

"Our Residential and Commercial businesses set new records for revenue, margin and profit for the year. In Refrigeration, we saw strong growth and margin expansion in the second half of the year, and momentum continues.

"In the fourth quarter, Residential volume and mix were negatively impacted by record warm weather in the U.S. Residential revenue was up 8% over the prior-year quarter at constant currency.

"Residential profit was flat, and margin was down due to negative Canadian foreign exchange, lower factory absorption than a year ago, and unfavorable mix – driven by a lower mix of furnace products and replacement business, and a higher mix of residential national accounts and new construction.

"In our Commercial business, we set new fourth-quarter records for revenue and profit. Commercial revenue was up 7% at constant currency, and margin expanded 70 basis points to 15.3%. In Refrigeration, revenue was up 3% at constant currency, and margin expanded 180 basis points to 8.8%.

"Looking ahead at 2016 overall, Lennox International is well positioned for another year of strong growth and profitability. The company reiterates its guidance for revenue growth of 4-8% at constant currency and EPS from continuing operations of $6.10-$6.60.

"With a strong balance sheet and cash generation, the company will continue to invest in the business to drive organic growth, raise the dividend with earnings growth, and repurchase stock."


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