Question-and-Answer Session
Operator
(Operator Instructions) And first on the line is Jeff Hammond with KeyBanc Capital Markets. Please go ahead.
Jeffrey Hammond - Keybanc Capital Markets
Hi. Good morning.
Todd Bluedorn
Hi Jeff. How are you?
Jeffrey Hammond - Keybanc Capital Markets
Doing great. Just wanted to dig in on the guidance, great news on change from the December meeting. Obviously there are lot of challenges out in the market place. Can you give us a sense of any bias within the range based on what you are seeing near term either all in or within any of the specific businesses where you might see some upside or down side within some of the specifics?
Todd Bluedorn
I'll give a little bit a color. The markets are tough right now. When our daily sales in December and January at constant currency were down mid-teens, and as you suggested there's lots of moving pieces right now in the economy and in the end markets. Looking at full year we -- as I said during the script, we expect North America residential and commercial markets be down the high single digits to low double-digits. We expect both HVAC and refrigeration Europe, to be down in the low double digits.
Now at the same time we continue to realize on a year-over-year basis price and mix and we continue to win in the market place and our commercial business and our refrigeration businesses, with share gains with new products. On the cost side you can see with the Blackville closure, as another example that we're continuing to aggressively take out factory costs, overhead and SG&A in response to the softening markets.
Jeffrey Hammond - Keybanc Capital Markets
Okay and then I know 1Q is -- and I think you pointed to a tougher first half but I know 1Q is particularly light from a seasonality standpoint, do you expect to be profitable in the first quarter?
Todd Bluedorn
We don't give quarterly guidance, but I think you've got the gist to what I said during the script, which is both the combination of the markets being extremely difficult, the year-over-year comp on the markets will get easier as the year goes along. Given that the 20 million of material cost reduction and the 20 million of commodities as I suggested are backend loaded, and given the thinness on a normal year of what our profitability is in the first quarter; first quarters is going to be challenging.
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