(By Balachander) Ingersoll-Rand Plc (NYSE:IR) reported a rise in earnings for the second quarter and the Dublin-based maker of industrial and commercial products raised its profit forecast for 2012. Yet, the company's revenue fell and it reduced high end of its top-line forecast below consensus.
Earnings per share (EPS) from continuing operations on an adjusted basis jumped 25 percent to $1.15 from $0.92. Reported EPS were $1.16 versus $0.26 in the year-ago period, which included 57 cents of impairment costs related to the sale of Hussmann refrigeration business.
Revenue declined 6.6 percent to $3.82 billion.
Wall Street analysts, on average, expected earnings of $0.91 per share on revenue of $3.88 billion.
Operating margin improved to 12.5 percent from 7.3 percent in the year-ago quarter.
Commenting on the results, Ingersoll Rand said its "major end markets showed an uneven demand pattern in the second quarter with moderate organic growth rates in the United States; slowing, but positive growth in Asia and Latin America; and declining activity in Western Europe."
There remains sustained, but slowing, activity in the North American and Asian industrial markets, the company said, adding it expects Refrigerated transport markets and commercial HVAC equipment replacement activity in North America to show moderate year-over-year growth and to decline in Western Europe.
The North American new commercial construction market is continuing its weak and uneven demand pattern, and activity in North American consumer-related markets, especially residential HVAC, is expected to improve moderately in the second half of 2012, Ingersoll-Rand said.
Looking ahead for the third quarter, IR forecasts EPS from continuing operations in the range of $0.95 to $1.00, on revenue between $3.6 billion and $3.7 billion. Analysts expect EPS of $0.95 on revenue of $3.76 billion.
For the full year, the company now expects EPS from continuing operations in the range of $3.15 to $3.25 from prior expectations of $2.90 to $3.10. Revenue is now projected to be between $14.0 billion and $14.2 billion from $14.0 billion to $14.4 billion projected earlier. Analysts expect EPS of $3.02 on revenue of $14.38 billion.
IR shares, which have been trading in the 52-week range between $25.86 and $45.62, ended Thursday's regular trading at $41.47.