Lennox International Inc., Dallas, TX has announced the specifics of a turnaround plan designed to improve the performance of its Service Experts business segment. The plan realigns Service Experts' dealer service centers to focus on service and replacement opportunities in the residential and light commercial markets.
Lennox has identified 130 dealer service centers which will comprise the ongoing Service Experts business segment. Lennox intends to divest the remaining 47 centers.
"This is a decisive step forward in our previously stated intention to realign Service Experts with its original vision: profitable service and replacement opportunities in metropolitan residential and light commercial markets," says Lennox CEO Bob Schjerven. "These markets have higher margins and lower risk, and are less cyclical. Furthermore, we see excellent potential in continuing to build value in the Service Experts brand in these markets."
The 130 service centers that will make up the ongoing Service Experts business segment had revenue of $604 million in 2003 and, on a consolidated basis, were profitable at the center level.
The 47 centers that will no longer be part of Service Experts are being organized under a new entity and will be classified as a discontinued business. While Service Experts will provide essential transitional support to the entity, it will be managed separately.
"It is our intention to find new ownership quickly for the 47 centers that will be divested to provide better alignment with their business structures and increase the likelihood of their future viability and success." The company expects the divestitures to be completed by the end of 2004.
For more information, visit www.lennoxinternational.com or contacting Bill Moltner, vice president, investor relations, at 972/497-6670.