Ingersoll-Rand Q3 Profit Declines On Charges, Lifts Full Year View - Update

(RTTNews) - Diversified industrial company Ingersoll-Rand Plc (IR) Friday reported a plunge in third-quarter profit, hit by charges. Adjusted earnings came above Wall Street expectations. Further, the company raised the low end of its full year forecast.

Net earnings plunged to $165.9 million from $321.6 million in the previous year. Earnings per share declined to $0.56 from $1.03.

The latest results included $0.59 per share related to restructuring and one-time charges for the spin-off of the security business, impairment charges related to security operations in the European region and the redemption premium expense for early debt retirement. In the previous year, the results included $2 million of restructuring costs equal to $0.01 per share.

Excluding items, earnings per share from continuing operations was $1.16, including a gain of $0.03 per share from a property sale, while it totaled $1.08 last year.

On average, 20 analysts polled by Thomson Reuters expected earnings of $1.10 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues improved to $3.75 billion from $3.593 billion in the prior year. Wall Street expected revenues of $3.73 billion.

Total U.S. revenues grew 5 percent while revenues from international operations rose 3 percent.

In Climate Solutions, net revenues improved 4 percent to $2.026 billion and bookings increased 7 percent year-over-year.

Industrial Technologies generated $721.9 million, up 3 percent from the previous year, and bookings rose 2 percent . Residential Solutions' revenues improved 9 percent to $609.5 million and included $16 million from a product line transferred from the Security Technologies segment.

Michael Lamach, CEO, said, "We realized revenue growth and earnings per share above our guidance, and continued to deliver excellent operating leverage in the quarter."

Looking ahead to the fourth quarter, adjusted earnings per share from continuing operations are expected to be in the range of $0.85 to $0.90. Reported earnings per share are anticipated in the range of $0.45 to $0.50, including security business spinoff and restructuring costs of $0.40 per share.

Fourth-quarter revenues are expected to be in the range of $3.5 billion to $3.6 billion. Analysts expect earnings of $0.94 per share on revenues of $3.60 billion.

Full-year adjusted earnings per share from continuing operations are expected to be in the range of $3.55 to $3.60. Reported earnings per share are estimated in a range of $2.34 to $2.39. The company expects revenues for 2013 to be in the range of $14.3 billion to $14.4 billion. Wall Street expects earnings of $3.59 per share on revenue sof $14.38 billion.

The previous forecast was for adjusted earnings per share from continuing operations of $3.50 to $3.60 and revenues in the range of $14.2 billion to $14.4 billion.

IR closed at $63.52 on Thursday.