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 financial position bode well for longer-term opportunities. First, the proportionate size of the replacement market for HVAC/R products now stands at over 80% of Watsco’s sales and has proven to be a vital and consistent source of long-term growth and earnings,” says Albert Nahmad, Watsco’s president and CEO.
 
“The stability and importance of the replacement market should grow over time given the Sunbelt’s necessity for HVAC/R products as the installed base of over 100 million central air conditioning and heating systems will eventually be replaced with product solutions that offer substantially higher energy efficiency and lower costs to the homeowner.”
 
Watsco is an independent distributor of air conditioning, heating and refrigeration equipment and related parts and supplies in the HVAC industry, operating 422 locations serving over 40,000 customers in 34 states.