Ingersoll-Rand PLC (IR) Q1 Earnings Fall 7.9%, Revenue Slips

Ingersoll-Rand PLC (IR) Q1 Earnings Fall 7.9%, Revenue Slips

Ingersoll-Rand PLC (NYSE:IR) posted on Tuesday with lower first-quarter net earnings of $88.0 million, or $0.29 per share, compared with $95.6 million, or $0.31 per share, in the year ago quarter. The results for the current quarter included $37.7 million or $0.11 per share for restructuring and one-time charges while last year results included $23.3 million of restructuring costs equal to $0.06 per share.

Ingersoll-Rand PLC (IR) Q1 Earnings Fall 7.9%, Revenue Slips

Excluding such items, adjusted earnings per share for the quarter stood at $0.42 that exceeds the earnings estimate of $0.40 from the analyst polled by Thomson Reuters. Diversified industrial company reported revenues of $3.11 billion, which was 1 percent below the $3.15 billion for the 2012 first quarter. The revenues missed the analyst estimate of $3.17 billion for the quarter.

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“In the first quarter, we realized solid results from our strategy to increase profitability and shareholder value, achieving a 14 percent year-over-year increase in adjusted EPS from continuing operations,” said Michael W. Lamach, chairman and chief executive officer.

The operating margin for the company was reported at 6.2 percent compared with 6.7 percent in 2012. After excluding onetime items, the operating margin came at 7.4 percent, slightly below the adjusted margin for the first quarter of 2012 of 7.5 percent. The low margins were mainly due to lower volume, unfavorable revenue mix, inflation and an increase in investment spending that offset gains in productivity initiatives and pricing.

Working capital for the company stood at 4.3 percent of revenues against 3.4 percent in 2012 while cash and debt balances were $833 million and $3.2 billion, respectively. Ingersoll-Rand PLC (NYSE:IR), world leader in creating and sustaining safe, comfortable and efficient environments, initiated a $2 billion share repurchase program in April this year. The company expects the program to get completed by the end of the first quarter of 2014.

For the second-quarter of 2013, revenues are expected to be in the range of $3.8 billion – $3.9 billion. The adjusted earnings per share are forecasted at $1.05 – $1.10, with reported earnings per share of $0.99 – $1.04. Analysts expect earnings of $1.13 per share and revenue of $3.98 billion for the second quarter.

For the full year, company reaffirmed its outlook, expecting revenues in the range of $14.2 billion – $14.6 billion and adjusted earnings of $3.45 – $3.65. Analyst expect earnings of $3.61 per share and revenue of $14.54 billion.

In December 2012, Ingersoll-Rand PLC (NYSE:IR) announced the plan to spin off its commercial and residential security businesses. The spin-off, which will be tax free to shareholders, is expected to be completed by year-end 2013.

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