Lennox selling Kysor Warren

Date: 06 February 2019
Lennox selling Kysor Warren
Lennox International Inc. reported fourth-quarter and full-year 2018 results. All comparisons are to the prior-year period. The company's tornado references relate to the July 2018 tornado damage at a Residential manufacturing facility in Iowa. Adjusted revenue and profit exclude the non-core Refrigeration businesses divested in 2018 -- Australia, Asia and South America. In 2019, the company plans to divest its Kysor Warren business within its Refrigeration segment and is currently targeting to close the sale in the first quarter.

"Lennox International posted a record year for revenue, profitability, and cash generation in 2018 while working through the challenges from tornado damage at a large manufacturing facility and further focusing our business portfolio with refrigeration divestitures in Australia, Asia and South America," said Chairman and CEO Todd Bluedorn. "We plan another divestiture in 2019 with the sale of the Kysor Warren business within our Refrigeration segment to focus on our businesses that have strong market positions and fit our growth profile.

"In Refrigeration for the fourth quarter, revenue at constant currency was up 1%, adjusted for the divestitures. Kysor Warren revenue was down significantly from the prior-year quarter, while the remainder of our North America revenue was up high-single digits. Europe revenue was up mid-teens at constant currency. Refrigeration segment margin declined 310 basis points to 9.2%, and profit was down 25% in the fourth quarter on mix and the timing of certain expenses and other products costs. As in Commercial, we expect organic margin expansion in 2019 for Refrigeration.
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