Watsco Inc., Miami, Fla., a distributor of heating, air conditioning and refrigeration products, reported sales for its fiscal 2023 second quarter were $2 billion, down 6% from the prior-year period.
Net income for the quarter was $205.4 million, down 8.9% from the prior-year period.
Watsco reported an 8% decrease in HVAC equipment sales (69% of total sales), a 7% decrease in other HVAC products (27% of total sales) and a 1% increase in commercial refrigeration products (4% of total sales).
Watsco’s OEM community was required to revamp product lines to meet heightened regulatory standards for efficiency. The transition resulted in temporary production and availability delays, which dampened results for the quarter.
Watsco reported sales for its first six months of 2023 were $3.6 billion, down 3% from the prior-year period. Net income for the first six months was $335.8 million, down 6.8% from the prior-year period.
“We consider this quarter’s performance, which is the second-best quarter in our history, to be a good achievement, especially considering the strength of last year’s comparable performance and the myriad of challenges facing our teams,” said Albert H. Nahmad, Watsco’s CEO. “We delivered robust profitability and margins, and our commercial and ductless businesses continue to experience healthy growth rates.”