Diversified industrial conglomerate Ingersoll-Rand Co. Ltd. (IR) on Friday reported a decline in third-quarter profit, with revenue slipping year-over-year in all operating segments, as its major end markets continued to experience weaker demand. Looking ahead, the company tightened its full year earnings forecast.
The Dublin, Ireland-based company said third-quarter net earnings attributable to Ingersoll-Rand dropped to $216.6 million, or $0.65 per share, compared to net earnings of $227.7 million, or $0.70 per share in the year-ago quarter.
The latest results included $10 million of pre-tax restructuring costs and a discrete tax benefit of $13.7 million.
On a non-GAAP basis, net earnings attributable to the company was $223.2 million or $0.67 per share.
Earnings from continuing operations dropped to $224.9 million or $0.68 per share from $233.7 million or $0.72 per share in the previous year. On a non-GAAP basis, earnings from continuing operations attributable to the company was $231.5 million or $0.70 per share.
On average, 18 analysts polled by Thomson Reuters expected the company to earn $0.61 per share for the quarter. Analysts' estimates typically exclude special items.
The company had projected third-quarter earnings from continuing operations to range between $0.55 and $0.70 per share, excluding $0.04 of restructuring expenses.
Net revenues for the quarter decreased 19% to $3.483 billion from $4.313 billion for the same period last year. The company's projection was for third-quarter revenues of $3.5 billion - $3.7 billion. Analysts expected revenues of $3.56 billion for the quarter. Negative currency hurt revenues by 2%.
The company noted that third-quarter orders, excluding currency, declined by approximately 17% compared with last year. Operating income declined to $318.3 million from $347.4 million in the prior year.
The company operates in four segments: Air Conditioning Systems and Services, Climate Control Technologies, Industrial Technologies, and Security Technologies.
At Air Conditioning Systems and Services, quarterly revenues dropped to $1.771 billion from $2.051 billion. The segment's operating income advanced to $151.7 million from $89.5 million. The company noted that commercial revenues decreased in all major geographic regions due to continued lower activity in non-residential construction markets and ongoing deferral of maintenance by customers. Residential revenues declined by 6% from last year.
Climate Control Technologies generated $649.5 million in the latest period, compared to $895.0 million last year. Operating income dropped to $60.5 million from $103.0 million. Total refrigerated trailer and truck revenues decreased by about 30%, while revenues for refrigerated display cases and contracting decreased by 25%. Sea-going container revenues and bus and aftermarket revenues declined due to the ongoing lower end market activity.
Third-quarter revenue for Industrial Technologies declined to $512.1 million from $718.3 million in the previous year, with operating income plunging to $43 million from last year's $81.4 million. Air and Productivity revenues declined by 29%, due to lower volumes in all geographic regions and the negative impact of currency translation. Club Car revenues declined by 29% due to ongoing weak fundamentals in key golf, hospitality and recreation markets, the company said.
At Security Technologies, net revenues dropped to $550.3 million from $648.8 million, reflecting contracting worldwide commercial and residential building markets. Operating income declined to $117.3 million from $126.0 million.
Further, the company said it is on track to achieve $670 million of gross productivity for the full year, exceeding the original target of $650 million.
During the third quarter, the company expanded the scope of its restructuring program initiated in the fourth quarter of 2008. The company now expects to spend about $277 million on it, an increase of $137 million compared to prior guidance.
For the second quarter, the company reported net income attributable to Ingersoll-Rand of $122.1 million or $0.38 per share, down from $256.1 million or $0.88 per share in the prior-year quarter. Quarterly revenues advanced 13% to $3.47 billion from the previous year's $3.08 billion.
For the first three quarters of the fiscal, net earnings attributable to the company dropped to $311.9 million or $0.96 per share from $665.4 million or $2.24 per share in the prior year. Net revenues for nine months increased to $9.890 billion from $9.557 billion in the same period last year.
Looking ahead, the company said fourth-quarter results would continue to be hurt by the ongoing difficult economic conditions. Adjusted earnings per share from continuing operations for the fourth quarter are expected in the range of $0.44 to $0.54.
The company now expects fourth-quarter revenue in the range of $3.2 billion-$3.4 billion, down by $200 million from the prior guidance. Analysts expect fourth-quarter earnings of $0.55 per share on revenues of $3.38 billion.
Further, the company expects full-year 2009 earnings per share from continuing operations in the range of $1.60-$1.70 with costs related to discontinued operations equal to $0.10 per share. Previous outlook was for 2009 earnings from continuing operations to range between $1.50 and $1.80 per share, with discontinued costs equal to $0.11 per share.
For full year, revenues are expected in the range of $13.1 billion-$13.3 billion. The previous forecast was for pro forma revenues of $13.3 billion - $13.7 billion. Wall Street looks for full year earnings of $1.58 per share on revenues of $13.33 billion.
For 2010, the company projects earnings in the range of $2.00-$2.40 per share, excluding restructuring costs, even in a flat year over year end market environment. Analysts expect 2010 earnings in the range of $1.47-$2.30 per share.
IR closed Thursday's regular trade at $35.35, up from the previous close of $34.66, on 6.52 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.