Ingersoll-Rand Plc (NYSE: IR), a diversified global company providing products, services and solutions to improve the comfort of air in homes and buildings, transport and protect food and perishables, secure homes and commercial properties, on Friday, reported its second-quarter financial results, posting an increase in profit. IR’s second-quarter results improved from a tax benefit.
Ingersoll-Rand has been operating in a challenging environment as the slowdown in residential and commercial construction activity has weakened demand for its products.
CEO Michael W. Lamach said that IR expects the difficult economic environment to continue through the second half of the year.
Looking ahead to the third quarter, Ingersoll-Rand expects earnings per share to be between $0.95 and $1 and revenue to be between $3.6 billion and $3.7 billion. Analysts expect the company to report earnings of $0.95 per share and revenue of $3.75 billion.
For the full year, the company expects earnings from continuing operations to be between $3.15 per share and $3.25 per share and revenue to be between $14 billion and $14.2 billion. The company had earlier forecast full-year earnings of $2.90-$3.10 per share and revenue of $14-$14.4 billion.
For the second quarter, IR reported a profit of $365.8 million, or $1.16 per share, up from $92.3 million, or $0.26 per share reported for the same period last year.
Revenue for the second quarter dropped 6.6% to $3.82 billion.
Operating margin for the second quarter rose from 7.3% to 12.5%, driven by higher prices and productivity.
Ingersoll-Rand shares fell in trading on Friday. The stock finished the day 2.94% lower at $40.25 on above average volume of 5.26 million.
Year-to-date, IR shares have gained 32.1%, compared to a gain of 8.34% for the S&P 500.
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