SWORDS, Ireland (

TheStreet

) --

Ingersoll Rand

(IR) - Get Report

posted lower-than-expected earnings for the fourth quarter, predicting weakness in several key markets.

Not surprisingly, the market responded in a similar fashion, driving shares in Ingersoll Rand down by 7.8% to $31.26 in Friday trading.

Ingersoll expects full-year 2010 earnings from continuing operations to land in the range of $1.95 to $2.35 including costs related to discontinued operations. This forecast includes $100 million of restructuring expenses. The company forecasts earnings of $2.20 to $2.60 per share excluding restructuring costs, compared to its prior guidance $2 to $2.40. The industrial manufacturer says there is still weakness in several of its key markets, in addition to the possibility of material inflation.

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Ingersoll posted net earnings of $139.4 million, or 42 cents a share compared with a loss of $3.29 billion, or $10.27 a year ago. The company reported net revenue of $3.3 billion for the fourth quarter, compared with $3.7 billion the previous year. Fourth quarter outcome was affected by a U.S. revenue decrease of 14%, and a decline of about 5% in international operations revenue, with the sharpest year-on-year decline in Europe.

Adjusted earnings per share from continuing operations was 48 cents a share, excluding 11 cents of restructuring costs. Analysts surveyed by Thomson Reuters expected earnings of 53 cents a share on revenue of $3.3 billion and forecast 2010 earnings of $2.30 a share.

-- Reported by Andrea Tse in New York

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