The impact of Covid-19 is blamed for a 14% drop in Q2 sales for heating, ventilating, air conditioning and refrigeration product manufacturer Lennox International.
The reported revenue of $941m in the second quarter follows an 8.4% sales drop in Q1 compared to 2019.
Operating income was $136m in Q2 2020 compared to $214m in the previous year quarter.
“The Covid-19 pandemic significantly impacted all our businesses in the second quarter, but our residential business improved each month through the quarter and was up 7% year-over-year in June as the economy continued to re-open and weather heated up,” said Lennox chairman and CEO Todd Bluedorn.
“As expected, our commercial-facing businesses were more heavily impacted from the pandemic. In our commercial business segment, revenue was down 28%, driven primarily by national account customers pushing out orders.”
Regional and local business was also down significantly in the quarter. Commercial segment profit was down 34%.
“In the refrigeration segment, adjusted revenue was down broadly across our businesses in North America and Europe, declining 26% at constant currency. Segment profit was down 53%, and segment margin contracted 460 basis points to 8.2%,” Todd Bluedorn added.