Join        Login             Stock Quote

Ingersoll-Rand (IR) 4Q Earnings Decline 6 Pct; Guidance Misses

 February 01, 2013 09:04 AM

(By Balaseshan) Ingersoll-Rand Plc (NYSE: IR) reported a 5.9% decline in earnings for the fourth quarter due to higher expenses and lower revenue as well as declining activity in Europe. The manufacturer of industrial and commercial products guided first quarter profit below consensus.

Earnings per share (EPS) from continuing operations on an adjusted basis were $0.76 per share, unchanged from last year. Reported EPS were $0.77 versus $0.79 in the year-ago period, which included a penny from tax benefits related to the sale of Hussmann refrigeration business.

Revenue declined 1% to $3.470 billion. Total revenues, excluding the results of Hussmann, were flat from last year. U.S. revenues excluding Hussmann were flat, while international revenue were also flat (up 1% excluding currency).

[Related -Dividend Roundup: CAG, IR, MUR, REXI, ROK, STEI]

Analysts, on average, polled by Thomson Reuters had expected earnings of $0.70 per share on revenue of $3.46 billion for the fourth quarter.

Operating margin improved to 10.6% from 9.7% (9.6% when adjusted for impairment and Hussmann) in the year-ago quarter, on higher prices and productivity.

Looking ahead into the first quarter, IR forecasts adjusted EPS from continuing operations in the range of $0.35 to $0.40 and revenue of $3.1 billion to $3.2 billion. Analysts expect EPS of $0.47 on revenue of $3.18 billion.

For the full year 2013, the company expects adjusted EPS from continuing operations of $3.45 to $3.65 and revenue of $14.2 billion to $14.6 billion, while Street analysts predict EPS of $3.59 on revenue of $14.59 billion.

[Related -Stocks End Modestly Higher Amid China Data; Groupon (GRPN) Tumbles]

"Our management team is focused on investing in multiple growth platforms identified in our planning process, as well as accelerating restructuring and cost reduction actions to generate sustained profitable growth in what we expect to be a slow growth economy in 2013," said Michael Lamach, chairman and chief executive officer.

On December 10, 2012, the company said its board unanimously approved a plan to spin off its commercial and residential security businesses. The company expects the spin-off, which is intended to be tax free to shareholders, to be completed prior to year-end 2013.

Upon completion of the spin-off, Ingersoll-Rand will cease to have any ownership interest in the new security company, and the new security company will become an independent publicly traded company. The new security company is projected to be an Irish plc.

IR shares, which have been trading in the 52-week range between $34.96 and $51.75, ended Thursday's regular session down 0.45% at $51.39.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.