Sales outside the United States accounted for 13% of Lennox's total revenue. Before the cumulative effect of an accounting change in 2002, net income increased 31% in 2003 to $77 million, and diluted earnings per share rose from $1 to $1.28.
Fourth quarter Heating & Cooling segment earnings showed an increase in revenue of 14% to $455 million. The Residential Heating & Cooling segment also reported 14% revenue growth, which the company attributed to growth in the Lennox Industries and Armstrong units, as well as the company's hearth products business.
Revenue in the Commercial Heating & Cooling segment was up 15%, or 10% adjusted for foreign exchange, to $132 million in the fourth quarter.
In other news, the Environmental Protection Agency (EPA) and the Department of Energy (DOE) selected Lennox Industries Inc., a subsidiary of Lennox International Inc., as an ENERGY STAR® Manufacturer of the Year. The company was recognized for its outstanding contribution to developing, manufacturing, and promoting energy-efficient products. Lennox introduced several ENERGY STAR®-qualified products in 2003 including nearly 90% of the new products in the Dave Lennox Signature™ Collection. Lennox was given the award for other reasons including its alliances with utility companies and involvement in consumer education campaigns promoting energy efficiency.