(By Balachander) Lennox International Inc. (NYSE:LII) said it intends to sell its Service Experts business and the provider of climate control services maintained its earnings outlook for 2012.
Service Experts consists of 108 dealer-contractor branches, and strategically, it is not necessary for these to be owned by the company, Lennox said in a statement. The business segment recorded revenue of $529 million in 2011, $80 million of which was from the National Account Services business that Lennox will retain.
The company, which boosted its quarterly dividend on Thursday, said it was planning to divest this business with the recovery in the North American residential market this year and the interest from potential acquirers.
In addition, Lennox said it plans to establish a supply agreement for its equipment with the future owner of Service Experts.
For 2012, the company continues to expect adjusted earnings per share of $2.35 to $2.65, while Wall Street analysts project $2.54 a share. It forecasts earnings per share of between $2.30 and $2.60 on a GAAP basis.
Lennox declared a quarterly dividend of 20 cents per share, payable on October 15, 2012 to stockholders of record as of October 4, 2012.
The stock, which has been trading in the 52-week range of $24.37 to $51.30, rose 3.53 percent to trade at $50.70 on Friday.