Compressed Air Best Practices - October 2008 - (Page 63) Compressed Air Industry AUTOMOTIVE TRANSIT A | 10/08 | “Our sales trends remain positive as we enter fiscal 2009. We expect to continue making progress on our operating improvement initiatives while continuing to invest in our business for future growth. Although we expect raw material costs to continue to increase, we will work to offset the impact through internal cost reduction efforts, raw material price indexing in some markets and price increases in other markets. While we are cautious about global economic conditions, we believe that the combination of our business model and extensive diversification of our products, end markets and geographies will lead to our 20th consecutive year of record earnings.” Fiscal 2009 Outlook Industrial Products: Our Industrial Filtration Solutions’ sales are projected to grow 8 to 12% due to continued global manufacturing investment conditions and growing demand for our new products. We expect our Gas Turbine Products’ sales to increase 5 to 10% for fiscal 2009. Continued strength is expected from both the international power generation and the oil and gas markets. Full year company sales are expected to be up 9 to 11%. We expect our operating margin will be a minimum of 11% for the full year. We expect our EPS to be between $2.30 and $2.40 Financial Statement Discussion Our gross margin was 33.2% for the quarter and 32.5% for the year, compared to prior year margins of 32.4% and 31.5%, respectively. The primary drivers for the improved margin include higher production volumes, cost controls, productivity improvements and some recovery of previously incurred product development costs, all of which were partially offset by higher commodity costs. Operating expenses for the quarter were 22.0% of sales, up from 20.1% last year. For the year, operating expenses were 21.5% of sales, up from 20.5% last year. The increases were driven by business mix, higher research and development costs to support our product development initiatives and higher information technology spending to improve our global customer support capabilities. per share, which would be our 20th consecutive EPS and earnings records. Hamilton, Bermuda, August 1, 2008 — Ingersoll-Rand Company Limited (NYSE:IR), announced that total revenues increased by 38% for the second quarter of 2008 compared with the 2007 second quarter and EPS from continuing operations exceeded prior guidance. The company reported net earnings of $256.1 million, or diluted earnings per share (EPS) of $0.88, for the second quarter of 2008. Second-quarter net earnings included $262.5 million, or EPS of $0.90 from continuing operations. www.airbestpractices.com 63 http://www.airbestpractices.com
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