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Ingersoll Rand 4Q Profit Up on Cost Improvements

Wednesday, 08 February 2012 12:01 PM

Ingersoll-Rand PLC said Wednesday its fourth-quarter profit rose 13 percent, as pricing and efficiency improvements offset a decrease in sales.

The manufacturing company based in Ireland said its major markets showed mixed and slowing demand during the fourth quarter.

Ingersoll Rand said that for 2012, it expects slower growth at refrigerated transport markets and in demand for commercial heating and cooling systems, especially in Europe where economic conditions remain volatile.

Meanwhile, the North American commercial construction market remains weak and demand from North American consumer markets is expected to stay depressed for most of this year, the company said.

The company reported net income of $242.2 million, or 76 cents per share, for the three months ended Dec. 31, up from $212.1 million, or 62 cents per share, a year earlier.

The recent quarter's results included a loss from discontinued operations of 3 cents per share and an offsetting gain of 3 cents per share related to the sale of its Hussmann refrigeration business.

Revenue fell 5 percent to $3.51 billion from $3.69 billion. Excluding Hussmann, Ingersoll Rand said revenue rose 1 percent.

Analysts, on average, expected earnings of 67 cents per share on $3.58 billion in revenue, according to a FactSet poll. Analysts' estimates usually exclude one-time items.

Revenue at the company's climate solutions business fell 8 percent to $1.91 billion, but excluding Hussmann, revenue rose 4 percent. Industrial technologies revenue increased 8 percent to $744 million.

The company credited the profit increase to pricing and operational changes that more than offset the sales decline.

For the full year 2011, Ingersoll Rand earned $343.2 million, or $1.01 per share, down from $642.2 million, or $1.89 per share, in 2010. Revenue rose to $14.78 billion from $14 billion.

The company said it expects to post a 2012 profit from continuing operations of $2.90 to $3.10 per share on revenue of $14 billion to $14.4 billion. Analysts polled by FactSet expect a profit of $3.11 per share on $14.58 billion in revenue.

In morning trading, Ingersoll Rand shares rose 44 cents, or 1.2 percent, to $38.

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Wednesday, 08 February 2012 12:01 PM
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