Sales decreased 1 percent to $819 million from $828 million in last year’s second quarter. In constant currencies and adjusting for the loss of $49 million in heat transfer revenues — most of which are now part of the company’s joint venture with Outokumpu and no longer reported by LII — total sales were up 2 percent.

Quarterly operating income was $56 million, up 10 percent from last year’s $51 million. Adjusting for pre-tax charges, operating income increased 7 percent year-over-year, the company’s sixth consecutive quarter of year-over-year improvement in operating profitability.

Net income was $30 million, up 19 percent from $26 million in the same period last year. Diluted earnings per share were $0.51 compared with $0.43 in second quarter 2002.

"I’m very pleased to report our sixth straight quarter of year-over-year improvement in operating performance, despite difficult market conditions,” said Bob Schjerven, chief executive officer. “And our progress was not limited to the profitability reported on our income statement and the strengthening of our balance sheet. We continue to execute the initiatives necessary to position Lennox International for profitable growth.”

Publication date: 07/21/2003