Lennox International Updates 2016 Outlook - Quick Facts

(RTTNews) - While reporting its second-quarter results today, Lennox International Inc. (LII), a provider of heating, air conditioning, and refrigeration products, updated its financial outlook for fiscal 2016 and said it expects to complete a one-time, lump sum pension buyout in the fourth quarter for certain vested participants.

Chairman and CEO Todd Bluedorn said, "This action is expected to reduce the company's pension obligations by approximately $50 million. We expect to take a non-cash charge of approximately $20 million after-tax, and our updated 2016 guidance for GAAP EPS from continuing operations incorporates this."

For fiscal 2016, Lennox raised its outlook for adjusted earnings per share from continuing operations to a range of $6.75 to $6.95 from the prior range of $6.50 to $6.90 per share.

However, the company lowered its outlook for full-year reported earnings from continuing operations to a range of $6.25 to $6.45 per share from the prior range of $6.45 to $6.85 per share.

The outlook includes special items to-date and the approximate $20 million after-tax pension charge expected in the fourth quarter as a result of the one-time, lump-sum pension buyout program to certain vested participants.

In addition, Lennox narrowed its revenue growth guidance for fiscal 2016 to a range of 4 percent to 6 percent from the prior range of 3 percent to 7 percent. The company still expects foreign exchange to be neutral to revenue on a full-year basis.

On average, analysts polled by Thomson Reuters expects the company to report earnings of $6.78 per share for the year on revenues of $3.62 billion. Analysts' estimates typically exclude special items.