By Ben Fox Rubin
Ingersoll-Rand PLC's (IR) second-quarter profit fell 13% as
higher expenses and tax provisions wiped out the diversified
industrial company's rise in revenue.
For the current quarter, the company predicted adjusted earnings
of $1.07 to $1.12 a share on revenue of $3.65 billion to $3.75
billion, compared with estimates of $1.10 a share and $3.76 billion
from analysts polled by Thomson Reuters.
For the full year, Ingersoll-Rand lowered its outlook, now
expecting adjusted earnings of $3.50 to $3.60 a share and revenue
of $14.2 billion to $14.4 billion, from its previous view of $3.45
to $3.65 a share and $14.2 billion to $14.6 billion.
Ingersoll-Rand late last year said it plans to spin off its
security businesses into a standalone company--part of a broader
compromise with Trian Fund Management LP. The new company, called
Allegion, will be headed by David Petratis, who has been CEO of
Quanex Building Products Corp. (NX). The new firm, which will be
spun off by the end of this year, will manufacture door locks and
locking systems for residential and commercial buildings.
The remaining Ingersoll-Rand will include the industrial,
transport refrigeration, and heating, ventilation and air
conditioning businesses.
Ingersoll-Rand reported a profit of $317.2 million, or $1.05 a
share, down from $365.8 million, or $1.16 a share, a year earlier.
Earnings from continuing operations were $1.03 a share, down from
$1.14.
Revenue grew 2.9% to $3.93 billion, as total U.S. revenue grew
4% and international revenue rose 1%.
The company in April projected earnings of $1.05 to $1.10 on
revenue of $3.8 billion to $3.9 billion.
Operating margin shrank to 12.3% from 12.5%. Selling and
administrative expenses rose 9.6% and provisions for income taxes
jumped 82%.
Climate-solutions revenue was up 4.6%, while
industrial-technologies revenue shrank 3.6%.
Shares closed Thursday at $59.92 and were inactive premarket.
The stock is up 25% so far this year.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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