Lennox International, Inc. (LII)
Bank of America Merrill Lynch Global Industrials & Materials Conference Call
September 6, 2012 9:30 AM ET
Todd Bluedorn – Chairman and CEO
Let’s start, and welcome back, everyone. With us today from Lennox International is its CEO and Chairman, Todd Bluedorn. Lennox is a global leader in heating, air conditioning and refrigeration markets. Todd has been CEO since 2007. You were elected Chairman this year, I believe. And Todd has served numerous senior roles at UTX since 1995 prior to his role at Lennox.
So without further ado, I’ll hand over.
Great. Thanks. Why don’t we go ahead and get started. I’m going to make a few opening comments and then we’ll turn it over to Q&A. This is a chart I always like to lead with. For those of you who are new to the story; this talks about the investment thesis in the stock, really four points.
One is, we have and continue to reduce our cost structure. The last four or five years we’ve gone from 25 to 15 factories, have done significant material cost reduction as we’ve moved our component supply base from North America to Asia, significant reduction in SG&A. And as revenue flows back across our business, we’ll be able to leverage those cost reductions is SG&A. We’ve committed we’ll going to grow half the rate of revenue as our end markets and our revenue grow.