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
TheStreet Open House

Ingersoll Rand Reports First-Quarter EPS From Continuing Operations Of $0.27, Reaffirms Full-Year 2014 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 $0.27 for the first quarter of 2014.

The company reported net earnings of $79.0 million, or EPS of $0.28, for the first quarter of 2014. First-quarter net earnings included $76.1 million, or EPS of $0.27, from continuing operations, as well as net earnings of $2.9 million, or EPS of $0.01 from discontinued operations. Results for the first quarter of 2014 included $8.9 million, or ($0.02) per share, of restructuring charges. This compares with net earnings of $88.0 million, or EPS of $0.29, for the 2013 first quarter. First-quarter 2013 net earnings included $50.5 million, or EPS of $0.17, from continuing operations, as well as net earnings of $37.5 million, or EPS of $0.12, from discontinued operations. The first quarter of 2013 included $22.1 million of restructuring costs equal to ($0.05) per share. Excluding restructuring, 2014 adjusted EPS from continuing operations was $0.29 and increased by $0.07, or 32 percent year-over-year (see attached tables for additional details).

“We delivered strong operating performance in the first quarter, achieving adjusted EPS above the top end of our guidance range with a 32 percent year-over-year increase,” said Michael W. Lamach, chairman and chief executive officer. “The effective application of our growth strategy and continuing use of our business operating system to guide our operational excellence efforts contributed to the first quarter year-over-year margin expansion of 60 basis points. These results, coupled with our balanced capital allocation strategy, further demonstrate our efforts to enhance shareholder returns while continuing to invest in the long-term success of our business.”

Additional Highlights from the 2014 First Quarter

Revenues: The company’s reported revenues increased by 3 percent to $2,723 million, compared with revenues of $2,639 million for the 2013 first quarter. Total U.S. revenues were up 3 percent compared to 2013, and revenues from international operations also increased 3 percent (up 4 percent excluding currency).

Operating Margin: The first-quarter operating margin was 5.7 percent compared with 4.5 percent in 2013. Adjusted for restructuring, the operating margin for the first quarter of 2014 was 6 percent, compared with the adjusted margin for the first quarter of 2013 of 5.4 percent. The year-over-year 60 basis point margin improvement was due to higher volume, gains from productivity initiatives and pricing, partially offset by inflation and an increase in investment spending.

Interest Expense and Other Income/Expense: Interest expense of $52 million for the first quarter of 2014 declined by $8.6 million compared with the same period last year. Other income totaled $2.2 million for the first quarter of 2014, compared with $0.5 million of income for the 2013 first quarter.

Taxes: The company had an effective tax rate of 23.3 percent in the first quarter of 2014. The effective rate for the first quarter of 2013 was 7.5 percent.

First-Quarter Business Review

[ Note: Adjusted margins for 2013 and 2014 exclude restructuring costs – see attached tables for additional details]

The Climate Segment delivers energy-efficient solutions globally and includes Trane ® and American Standard ® Heating and Air Conditioning which provides heating, ventilation and air conditioning (HVAC) systems and commercial and residential building services, parts, support and controls; and Thermo King ®, the leader in transport temperature control solutions. Revenues for the first quarter of 2014 were $2,041 million and increased 4 percent compared with the first quarter of 2013. Bookings increased 7 percent year-over-year.

On a year-over-year basis, total commercial HVAC revenues increased by a low-single digit percentage with low-single digit percentage year-over-year gains in equipment revenues and a mid-single digit revenue increase in parts, service and solutions. Commercial HVAC revenues in North America were flat in the quarter compared with last year and increased by a mid-single digit percentage in overseas operations. First-quarter 2014 commercial HVAC bookings reflect a low-single digit percentage increase compared with last year.

1 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,987.51 -61.49 -0.36%
S&P 500 1,985.54 -11.91 -0.60%
NASDAQ 4,567.5980 -24.2080 -0.53%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs