Watsco Archives

Watsco, Carrier Corp. Go Forward with Joint Venture

HVAC distributor Watsco Inc. and air conditioning product manufacturer Carrier Corp., a unit of United Technologies Corp., are moving forward with their plans to form a joint venture that will distribute Carrier, Bryant and Payne products throughout the U.S. Sunbelt, Latin America and the Caribbean.

The U.S. Federal Trade Commission has granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 related to the joint venture.

When it closes, the deal will nearly double Watsco's sales. Watsco is a distributor of air conditioning, heating and refrigeration equipment, parts and supplies in the HVAC/R industry, operating 412 locations serving 40,000 customers in 34 states.

Watsco and Carrier's ...

June 9, 2009

Finance

Watsco, Carrier Corp. Joint Venture Moves Forward

HVAC distributor Watsco Inc. and manufacturer Carrier Corp., a unit of United Technologies Corp., are moving forward with their plans to form a joint venture that will distribute Carrier, Bryant and Payne products throughout the U.S. Sunbelt, Latin America and the Caribbean.

The U.S. Federal Trade Commission has granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 related to the joint venture.

Watsco and Carrier's joint venture will be named Carrier Enterprises LLC. The venture will operate 110 locations in 20 states and Puerto Rico, the Caribbean and Latin America and serve more than 19,000 air conditioning and heating contractors.

Carrier will contribute 95 locations in the U.S. Sunbelt and ...

June 7, 2009

Plumbing Products & PVF Distribution

Watsco Records $1.2 Million Loss In 1Q

Watsco, Inc., Miami, FL, reported first quarter sales of $291 million, a decline of 23% over 2008. The independent distributor of air conditioning, heating and refrigeration products recorded a loss of $1.2 million for the period, compared to profit of $7.6 million the prior year.

The economic environment continued to take its toll on the seasonally slower first quarter. We are pleased with the continued improvement in sales mix of more energy-efficient and environmentally friendly products in this current market environment, said Albert H. Nahmad, president and CEO. "We anticipate this trend will continue as we move into the replacement season during the summer months."

Sales results were impacted by the economic environment, especially ...

May 3, 2009

Plumbing Products & PVF Distribution

Watsco Sales Down in 2008

Watsco Inc., Coconut Grove, FL, distributor of air conditioning, heating and refrigeration products, reported sales for the year ended Dec. 31, 2008, were $1.7 billion, a 3% decrease from last year.

On a same-store basis, sales were down 10%, reflecting a 10% decline in sales of HVAC equipment (44% of sales), an 11% decline in sales in other HVAC products (43% of sales) and a 5% decline in sales of commercial refrigeration products (13% of sales).

Sales results also reflect an improving revenue mix of high-efficiency and environmentally-sensitive air conditioning and heating systems. From an end-market point of view, results include flat sales to the residential replacement market, a single-digit decline in the commercial market and a sharp decrease in sales to ...

February 16, 2009

Plumbing Products & PVF Distribution

Watsco Same-Store Sales Down 9% YTD

HVAC distributor Watsco Inc., Coconut Grove, FL, sales in the third quarter were $475 million, down 12% on a same-store basis. Sales results include higher pricing and an improved sales mix of higher-efficiency air conditioning equipment and lower unit volume from cooler summer temperatures in certain markets. Sales were also hit by low housing starts. Profit was $23.3 million.

Sales in the first nine months were $1.37 billion, down 9% on a same-store basis. The results reflect a 9% decline in sales of HVAC equipment, an 11% decline in sales in other HVAC products and a 3% decline in sales of commercial refrigeration products. Profit was $57 million.

Watsco's performance and ability to respond to overall market conditions matched with the strength of our ...

October 16, 2008

Plumbing Products & PVF Distribution

Watsco Sales Up 8% in 2Q

Watsco, Inc., Coconut Grove, FL, reported revenues for the second quarter increased 8% to $510 million over the same period in 2007. Profit improved 7% to $26.1 million.

The revenue increase includes $62 million from 58 locations opened or acquired in the past 12 months.

Same-store sales declined 5%, reflecting a 4% decrease in sales of HVAC equipment, an 8% decline in other HVAC products and a 1% increase in commercial refrigeration products.

For the six months ended June 30, 2008, revenues increased 6% to $890 million, including $111 million from locations opened or acquired during the last 12 months. Gross profit for the period increased 7% to $229 million. Same-store sales declined 7% in the first six months.

Watsco is an ...

July 17, 2008

Plumbing Products & PVF Distribution

Replacement Market a Boon for HVAC Distributor Watsco

As the housing market continues to slump and new installations of central air systems with it, Watsco Inc., Coconut Grove, FL, continues to increase profits by building upon the growing replacement market.

Senior Vice President Barry Logan told attendees at the Piper Jaffray Industrial Growth Conference on June 11 that environmental mandates and aging systems have driven the replacement market to 75 percent of the business Watsco is doing today.

The mandate signed into law in 2001 required that all new air conditioning and heat pump units improve efficiency by 30 percent by 2006. In addition, use of refrigerants that deplete the ozone was to be phased out entirely by 2010.

Though new products don't need to be in place before 2010, Watsco already ...

June 25, 2008

Technology

Watsco Launches ACDoctor.com

Watsco, Inc., Coconut Grove, FL, has launched ACDoctor.com, a consumer Web site that offers educational tools to help homeowners identify energy efficient cooling systems to help save money and reduce negative impacts of global warming.

According to Watsco, the heating and cooling of homes accounts for nearly 56% of residential energy use in the U.S., or $66.5 billion per year.

ACDoctor.com features energy saving calculators and tips on keeping energy bills low, energy efficiency high and improving the quality of indoor air. Users can compare HVAC systems, connect with contractors and locate financial incentives.

Watsco is an independent distributor of air conditioning, heating and refrigeration equipment and related parts and supplies in the HVAC ...

June 23, 2008

Plumbing Products & PVF Distribution

Watsco Same-Store Sales Fall 10% in 1Q

Watsco, Inc., Coconut Grove, FL, reported revenues for the first quarter 2008, were up 3% to $380 million compared with the same period a year ago.

The increase includes 63 locations opened or acquired over the past 12 months, adding $49 million to sales in the quarter.

On a same-store basis, sales fell 10%, including a 10% decrease in the sale of air conditioning equipment, a 13% decrease in other HVAC products, and a 2% increase in the sale of refrigeration products.

Watsco is an independent distributor of air conditioning, heating and refrigeration equipment and related parts and supplies in the HVAC industry, operating 426 locations serving over 40,000 customers in 34 ...

April 17, 2008

Plumbing Products & PVF Distribution

Watsco Same-Store Sales Fall 7.6% in 2007

Watsco, Inc., Coconut Grove, FL, reported sales in 2007 of $1.76 billion, including $121 million from locations acquired or opened in the past 12 months. Revenues on a same-store basis fell 7.6%, reflecting a 5% decline in sales of HVAC equipment (45% of sales).

Watsco had a 10% increase in commercial refrigeration product sales and an 11% decline in other HVAC products.

From an end-market point of view, results include growth in the residential replacement market, growth in the commercial market and a decrease in sales to new housing.

Revenues for the fourth quarter increased 4.8% to $398 million, including $52 million from locations opened or acquired during the last 12 months, versus $380 million during the quarter a year ago. Revenues on a ...

February 19, 2008

Finance

HD Supply: Watsco Deal Falls Through

HD Supply, Orlando, FL, will not move forward with its deal to sell its HVAC business to Watsco, Coconut Grove, FL, HD Supply spokeswoman Erica Crosling confirmed to MDM.

The potential sales of the HVAC business to Watsco was always dependent up on a transaction that was beneficial for our customers and associates, and maximized value for the company," Crosling said. "After carefully weighing the options and taking these concerns into consideration, we have decided to retain and grow our HVAC business."

Watsco had signed a letter of intent to buy the HD Supply branches that sell Rheem.

HD Supply's deal with Pro-Build Holdings to buy its lumber and building materials division will go forward. ...

February 3, 2008

Top Distributor Sectors

Watsco to Buy HD Supply’s HVAC Assets

HD Supply has signed a letter of intent to sell its Rheem/Ruud HVAC operations to Watsco Inc., Coconut Grove, FL, an HD Supply spokeswoman confirmed. She said&nbsp ; the companies are in the process of due diligence on the deal.
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If it moves forward, the transaction would close in the first quarter of 2008. The assets will become part of Watsco's Gemaire group in Ft. Lauderdale, FL.
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HD Supply will hold onto its plumbing assets.

The HD Supply Plumbing/HVAC business Web site lists Hughes Supply and Apex Supply Co. as the two companies that made up the division. Former revenue reports do not separate the plumbing from the HVAC sales.

Apex,

Atlanta, GA , was ...

December 14, 2007

Top Distributor Sectors

Watsco Sales Down 6% in First Half

HVAC distributor Watsco, Inc., Coconut Grove, FL, reported sales decreased 7% to $471 million for the second quarter ended June 30, 2007.
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Revenues in the first six months declined 6% to $842 million. Profit for the first six months was $35.4 million, down from the $41.8 million recorded in the same period a year ago. New branches added $21 million of revenue during the first half of 2007.
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The Watsco network has expanded by 23 locations over the past 12 months, with a working capital investment related to these network expansion activities of $18 million as of June 30, 2007.
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Watsco recently announced it would acquire ACR Group Inc. , which had $240 million in sales in 2006. It has 54 locations in 10 ...

July 24, 2007

Finance

Watsco to Acquire $240M ACR Group, Inc.

Watsco, Inc., Coconut Grove, FL, has agreed to buy ACR Group, Inc. for $6.75 a share in cash, a 42% premium to the 90-day average closing price. ACR is a $240 million distributor of air conditioning and heating products.

ACR, Houston, TX, operates from 54 locations serving over 12,000 air conditioning and heating contractors throughout Florida, Texas, California, Georgia, Tennessee, Arizona, Colorado, Louisiana, Nevada and New Mexico. ACR has 503 employees and distributes a full line of air conditioning and heating equipment and related parts and supplies of 20,000 SKUs.

ACR ranked #7 in Supply House Times magazine's 2007 list of the top 50 HVAC distributors in the U.S.

Watsco is an independent distributor of air conditioning, heating and refrigeration ...

July 5, 2007

Top Distributor Sectors

Watsco Sales Grow 7% in 2006

Watsco, Inc., distributor of air conditioning and heating products, reported sales of $1.8 billion in 2006, a 7% increase from 2005. Profit was $82.4 million.

Fourth-quarter sales were $388 million.

&nbsp ; “2006 was one of enormous change as virtually half the products we sell were transitioned to new families of higher-efficiency products. We expect these new products to provide a unique and sustainable sales opportunity for us given consumers' high degree of sensitivity and focus on energy costs, President and CEO Albert H. Nahmad said.

The Watsco network expanded by 28 locations in 2006, including locations opened to enhance local service and locations acquired adding new customers, products and market share. Revenues contributed by new ...

February 13, 2007

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