HVACR distributor Watsco Inc. (NYSE:WSO), Miami, FL, reported second quarter sales of $1.4 billion, down 1.2% year-over-year. Profit decreased 4% to $86.6 million, and diluted EPS of $2.26 was down from $2.40 a year ago but beat analysts’ estimates by 34 cents.
Excluding acquisitions, Watsco’s HVAC equipment sales decreased 4% in the quarter, other HVAC products decreased 9% and commercial refrigeration equipment decrease 15%.
“Watsco’s entrepreneurial culture and decentralized operating philosophy, which empowers leaders to think and act locally, are critically important given the diverse business conditions in our various markets,” said Albert H. Nahmad, chairman and CEO. “In a short period of time, our leaders deployed more technology and implemented new ideas to enhance the customer experience in a challenging environment. During the quarter, our residential HVAC equipment business recovered steadily and drove record, double-digit sales and profit growth rates in June 2020 versus 2019 with on-going momentum into July. We will continue to innovate, drive performance and look for opportunities to grow our business.”
For the first six months, sales were $2.4 billion, up 2.6% over the same period a year ago. Profit declined 6.5% to $117.1 million.
Excluding acquisitions, HVAC equipment sales decreased 2% in the quarter, other HVAC products decreased 4% and commercial refrigeration equipment decrease 8%.