Compressed Air Best Practices - February 2008 - (Page 48)

| 02/08 Compressed Air Industry BULK HANDLING | WALL STREET WATCH “As a result of expected revenue and cost synergies, we are confident that this acquisition will improve Ingersoll Rand’s future earnings growth potential. We believe the new Ingersoll Rand will be capable of sustaining annual organic revenue growth averaging 5 to 7 percent, and EPS growth exceeding 15 percent per year, both in excess of our former growth guidance. In particular, assuming timely consummation of the proposed acquisition, we anticipate earnings of $4.00 per share in 2008.” Fred Poses, Trane Chairman and CEO said, “For our shareowners, this offer represents an attractive price for our shares today and the opportunity to participate in a powerful global diversified industrial company in the future. Combining Trane and Ingersoll Rand’s climate control operation creates a very strong business. With the size, strength and operational effectiveness of a $17 billion global industrial company, we believe this combination is best for our customers, employees and shareowners in the long term.” Poses will remain in his position until the acquisition is completed. “This acquisition represents a significant next step in Ingersoll Rand’s decade-long transformation to become a leading global diversified industrial company, with strong market positions across the climate control, industrial and security markets,” said Henkel. “The acquisition of Trane meets our long-term objectives of significantly increasing consistency of revenue and income streams, adding strong brands and market positions, and further strengthening the organic growth potential of our portfolio. Trane’s leadership position in the global commercial and residential climate control industry enhances our own highly regarded Hussmann and Thermo King brands.” “Trane’s demonstrated long-term organic growth rate, averaging 7 to 8 percent per year, compares favorably to the organic growth targets we have established for our business portfolio. Trane’s talented management team and employees have delivered consistent revenue growth and operating margins throughout all phases of the business cycle. “We believe Trane will deliver strong growth and profitability going forward. Based upon market fundamentals such as rising energy costs and conservation initiatives, we expect solid replacementdemand for energy-efficient products and for retrofit and refurbishment of current systems. Trane’s large installed base of equipment and systems will provide profitable aftermarket growth potential. Also, Trane has the leading market position in North America, and is growing strongly and increasing penetration in international markets.” “On a combined basis, Ingersoll Rand’s climate control operations are projected to have revenues of approximately $11 billion in 2008 and will have a significant presence in all major segments of the associated industries worldwide. It is anticipated this combination will produce annual pre-tax cost and revenue synergies exceeding $300 million by 2010. Anticipated synergies include purchased material savings through supplier rationalization and procurement leverage, improvements in manufacturing costs and lower general and administrative costs. Longer term, we will benefit from synergies related to cross selling and service revenue expansion.” 48 www.airbestpractices.com http://www.airbestpractices.com

Table of Contents Feed for the Digital Edition of Compressed Air Best Practices - February 2008

Compressed Air Best Practices - February 2008 Contents From the Editor Utility-Air News February Audit of the Month: Dense-Phase Transport System Wreaks Havoc on Compressed Air System Real World Best Practices: Material Conveying with Pneumatic and Vacuum Systems Industrial Vacuum Cleaners Use Compressed Air in Portland Cement Manufacturing Processes The Numatics Air Preparation Group The Ins and Outs of Vacuum Generators Dekker Vacuum Technologies Do Your Meetings Sabotage Your Profits? Resources for Energy Engineers Wall Street Watch Advertiser Index Job Market

Compressed Air Best Practices - February 2008

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