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 Reports Second-Quarter EPS From Continuing Operations Of $1.03, Updates Full-Year 2013 EPS Outlook

Ingersoll-Rand plc (NYSE:IR), a world leader in creating and sustaining safe, comfortable and efficient environments, today reported diluted earnings per share (EPS) from continuing operations of $1.03 for the second quarter of 2013.

The company reported net earnings of $317.2 million, or EPS of $1.05, for the second quarter of 2013. Second-quarter net earnings included $311.6 million, or EPS of $1.03, from continuing operations, as well as $5.6 million, or EPS of $0.02 of income from discontinued operations. This compares with net earnings of $365.8 million, or EPS of $1.16, for the 2012 second quarter.

Results for the second quarter of 2013 included $31 million, or $0.11 per share, of restructuring and one-time charges related to the spinoff of the security business. The prior year’s quarter included $14 million of restructuring and one-time costs equal to $0.04 per share. Before these items, 2013 adjusted EPS from continuing operations was $1.14 (see attached tables for additional details).

“We delivered revenue growth and earnings above our commitment in the second quarter with solid operational execution across the company,” said Michael W. Lamach, chairman and chief executive officer. “At the same time, we completed critical milestones related to the security business spinoff and concluded a successful debt offering that improved our liquidity and reduced our future interest costs. The quarter demonstrated our continued ability to successfully navigate challenging market environments and deliver operating leverage while still making strategic investments to support the company’s long-term growth strategy.”

Additional Highlights from the 2013 Second Quarter

Revenues: The company’s reported revenues increased by 3 percent to $3,933 million, compared with revenues of $3,821 million for the 2012 second quarter. Total U.S. revenues were up by 4 percent compared to 2012, and revenues from international operations increased by 1 percent.

Operating Margin: The second-quarter operating margin was 12.3 percent compared with 12.5 percent in 2012. Adjusted for restructuring and one-time items, the operating margin for the second quarter of 2013 was 13.0 percent, up by 20 basis points compared with the adjusted margin for the second quarter of 2012 of 12.8 percent. The year-over-year margin improvement was due to increased volume, productivity initiatives and improved pricing, which was partially offset by inflation and an increase in investment spending.

Interest Expense and Other Income/Expense: Interest expense of $62.4 million for the second quarter of 2013 was essentially flat compared with the same period last year. Other expense totaled $(1.7) million for the second quarter of 2013, compared with $4.1 million of income for the 2012 second quarter. The year-over-year change was due to higher currency losses.

Taxes: The company had an effective tax rate of 24 percent in the second quarter of 2013. The effective rate for the second quarter of 2012 was 13 percent. During the second quarter of 2012, the company recorded a discrete tax benefit of $47 million, primarily related to a tax law change in a non-U.S. jurisdiction.

Second-Quarter Business Review

[ Note: Adjusted margins for 2012 and 2013 exclude restructuring and other one-time costs – see attached tables for additional details]

Climate Solutions delivers energy-efficient solutions globally and includes Trane, which provides heating, ventilation and air conditioning (HVAC) systems and commercial building services, parts, support and controls; and Thermo King, the leader in transport temperature control solutions. Revenues for the second quarter of 2013 were $2,058 million and increased by 5 percent compared with the second quarter of 2012. Bookings increased by 4 percent year-over-year.

On a year-over-year basis, total commercial HVAC revenues increased by a low-single digit percentage with a mid-single digit percentage increase in equipment revenues partially offset by a slight decline in revenues in parts, service and solutions. Commercial HVAC revenues increased slightly in the Americas and increased by a low-teens percentage in both Europe and Asia during the quarter compared with last year. Second-quarter 2013 HVAC bookings reflect a slight increase compared with last year.

1 of 10

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
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%
YHOO $27.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs