Trane hit by COVID-19 in Asia Pacific
IRELAND: Trane Technologies reports revenue down 6% to $2,641m in the first quarter of 2020, with the greatest impact of COVID-19 in Asia Pacific witnessing revenues down 35%.
The onset of the COVID-19 pandemic impacted global bookings and revenue growth in the quarter with the greatest impact in the Asia Pacific segment. Prior to the pandemic, Americas HVAC demand was strong in the quarter.
Announcing adjusted EBITDA down 12% to $261m, Trane chairman and CEO Mike Lamach said: “The COVID-19 pandemic has presented the world with unprecedented challenges, affecting economies, businesses, communities, families and our way of life.”
Asia Pacific was the first segment to experience the COVID-19 pandemic, heavily impacting demand for equipment and services in the region. Trane’s reported bookings were down 18% and revenue down 35%.
EMEA was also heavily impacted by COVID-19 in the first quarter, primarily in March. Here, reported bookings were down 4% to to $443m and revenue down 5% to $364m. Solid revenue growth in commercial HVAC was said to have been offset by declines in its Thermo King transport refrigeration sector.
The Americas saw bookings up 11% to $2,368m, but revenues down 2% to $2,098m.
Strong, broad-based, mid-single digit revenue growth in commercial HVAC was, again, said to have been more than offset by transport revenue declines of approximately 30% and low-single digit residential HVAC revenue declines, both impacted by softness related to COVID-19 in the second half of March. COVID-19 related building lockdowns also weakened demand for HVAC services and parts.