IRELAND: Trane Technologies saw sales drop 13% to $3,139m in the second quarter of 2020 due to the coronavirus.
The company, which formally separated its commercial and residential heating and cooling business, building controls and transport refrigeration sectors from Ingersoll-Rand at the beginning of March, reported the continuing effects of the Covid-19 pandemic impacting global bookings and revenue growth.
“The COVID-19 pandemic continues to present the world with complex challenges and great uncertainty as we move through 2020,” said Mike Lamach, chairman and chief executive officer.
“Despite continued challenging end markets, strong execution by our global teams in the second quarter enabled us to continue our stranded cost reduction and transformation-related margin improvement programs while maintaining high levels of business reinvestment for the future. At the same time, we outperformed our end market conditions and effectively managed deleverage within our gross margin target levels.”
The company’s operations in North America and Latin America saw reported and organic bookings and revenues down 5% and 13%, respectively. Transport revenues were down more than 40%.
Despite Covid-19 pandemic-related building closures and reduced building occupancy, service revenues declined at a slower pace than equipment.
Trane Technologies’ Europe, Middle East and Africa operations were heavily impacted by Covid-19. Reported bookings were down 22% and organic bookings were down 20%.
Reported revenue was down 17% and organic revenue was down 15%.
Commercial HVAC organic revenues were down high-single digits and transport revenues were down more than 20%.
Reported revenue from Asia Pacific was down 8% and organic revenue was down 5% as revenue growth in China was more than offset by revenue declines in the rest of Asia.