DALLAS -- Lennox International Inc. reported financial results for the third quarter of 2009.

Revenue for the third quarter was $750 million, 22 percent below the prior-year quarter. Excluding the negative impact of foreign exchange, revenue would have been down 20 percent. Diluted earnings per share from continuing operations on an adjusted basis, a non-GAAP measure, were 72 cents, compared to $1.10 in the record third quarter a year ago. Diluted earnings per share from continuing operations on a GAAP basis were 59 cents, compared to 96 cents in the year-ago quarter.

“The company’s strong operational execution led to record free cash flow generation of $118 million in the third quarter, up 18 percent from a year ago, and gross margin improved 170 basis points,” said Todd Bluedorn, chief executive officer. “The cost-reduction actions we have taken over the last year are providing significant benefit, and additional restructuring activities are under way. As expected, end market conditions continued to be difficult in the third quarter, and commercial markets were down significantly. While residential and refrigeration markets were also down from a year ago, we saw the rate of decline slow in the third quarter. Looking ahead, we remain focused on further lowering our cost structure and executing on our strategic initiatives to drive increased earnings leverage as markets recover.”

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