Trane says had ‘very soft August’ like competitor in residential business

Speaking at Morgan Stanley’s Laguna Conference, Trane (TT) executives said about the company’s residential business: “First of all, we’re well aware of what happened in July, right? Very public data. The market was down. Approximately 30%. We’re well aware of that. We’re also aware one of our competitors yesterday talked about having a very soft August. We did as well. Okay. So let me let me remind everyone a couple things. One is first of all, our residential business is about 15% of the enterprise, 15%, one five. I’ll also remind you what we said in the second quarter, right. So the second quarter, we said that we anticipated the third quarter, at least on a dollar basis. I’m only going to talk dollars, not units, because it becomes too confusing on a dollar basis. We thought that the third quarter could be down high single digits. We now believe that number could be down, could be down up to 20% for the full year. We said that we thought residential would be flattish. We now are saying that that could be down, could be down, you know, it could be down high single digits. So that’s where we are with our residential business. This obviously will put some pressure on EPS. We don’t believe that pressure is material and we believe that the pressure will be more fourth quarter than third quarter. I’ll ask Chris to give a few comments here in a minute, but one thing I want everyone to be aware of is yes, the residential business is running into some tough times. And yes, we are managing the business appropriately from a cost standpoint. So we are taking cost out. We have we have, taken some time out of our factory so that we can balance the inventory load within the channel. We’re doing all the all the right things to make sure that we can maximize the opportunities that we have within residential, but one thing I want to make sure everyone’s very clear on what we’re not going to do is cut our long term investments in the business. Trane Technologies is a company that consistently invest for the long term.”