This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ingersoll-Rand CEO Discusses Q2 Results - Earnings Call Transcript

Operating margin for the quarter was 12.4%, up 20 basis points versus prior year. If we exclude Hussmann and the property of sale gain from last year, margins in the second quarter were up 70 basis points from second quarter of 2011. Margins improved from pricing and productivity, partially offset by unfavorable mix, currency and higher restructuring and investment spending year-over-year as we discussed in the April earnings call.

We are particularly encouraged by the results of residential which were right on forecast and show the 150 basis points in margin improvement. Industrial posted a new record margin level of 17% with margin increases in all regions.

Climate increased margins 100 basis points on a comparable basis even in the face of challenging mix between HVAC and Thermo King. And finally, security delivered margins of 20% despite some heavy restructuring spend in the quarter continuing soft markets.

All of our business continue to realize positive pricing and in the second quarter, our pricing outpaced material inflation for the fifth consecutive quarter. Our focus on operational excellence, which includes pricing, lien sourcing, functional support and innovation, delivered excellent result in the quarter and enabled us to effectively navigate increasingly volatile global market conditions.

Please go to slide 4. (Inaudible) the midpoint of our guidance of $0.88 by $0.27, $0.12 would of that be for some operations with a $0.01 negative from the combination of price, which was slightly positive, and headwinds and volume, mix of foreign exchange.

Given the volatility in the markets and currency in the quarter, we were pleased with the performance. Productivity inflation were $0.08 better than expectation as the pipelines delivered productivity and we saw moderation of material and other inflation.

Other items such as legislative expense and share count that together came in $0.02 positive. Our underlying tax rate was a couple of points lower in the quarter and you will see that we're carrying that lower rate into the outlook for the balance of the year. That gives you a $0.03 benefit in Q2. That brings the operational EPS to an even dollar.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs