On a year-over-year basis, total commercial HVAC revenues decreased by 2 percent (flat excluding currency) primarily due to declining markets in Western Europe and currency translation. Total Thermo King refrigerated transport revenues declined in the third quarter compared with last year as moderate growth in the Americas was more than offset by declines in European and Asian markets and unfavorable currency translation.
Third-quarter 2012 segment operating margin was 12.7 percent, compared with 11.5 percent (11.7 percent excluding Hussmann’s results) last year. The year-over-year margin improvement was due to pricing and productivity actions, partially offset by inflation, negative currency, unfavorable revenue volume/mix and higher investment spending.
Industrial Technologies provides products, services and solutions to enhance customers’ productivity, energy efficiency and operations. Products include compressed air systems, tools, fluid power products, and golf and utility vehicles. Total revenues in the third quarter of $702 million increased by 1 percent (up 4 percent excluding currency) compared with the third quarter of 2011. Air and productivity revenues declined slightly, as volume gains in the United States were more than offset by revenue declines in international markets, primarily related to currency translation.
Club Car revenues increased mid-single digits compared with the third quarter of 2011 from gains in the golf market.Third-quarter segment operating margin for Industrial Technologies was 15.2 percent, and increased by 1.4 percentage points compared with last year. Margin benefits from improved productivity and pricing were partially offset by inflation and increased investment spending. Residential Solutions includes the Trane and Schlage brands, which deliver safety, comfort and efficiency to homeowners throughout the Americas. Products, services and solutions include mechanical and electronic locks, HVAC systems, indoor air quality solutions and controls, and remote home management systems. Third-quarter revenues were $559 million, an increase of approximately 11 percent (up 11 percent excluding currency) compared with 2011. Total reported residential security revenues were up low teens compared with 2011 due to sales gains from the new residential builder markets and “big box” customers in the United States and from strong growth in South America.