Compressed Air Best Practices - November 2008 - (Page 47) Compressed Air Industry STEEL & METALS | 11–12/08 | Hamilton, Bermuda, October 24, 2008 — Ingersoll-Rand Company Limited (NYSE:IR), announced that total revenues increased by 93% for the third quarter of 2008 compared with the 2007 third quarter and EPS from continuing operations met revised guidance. The company reported net earnings of $227.7 million, or diluted earnings per share (EPS) of $0.70, for the third quarter of 2008. Third-quarter net earnings included $233.7 million, or EPS of $0.72 from continuing operations, as well as $6.0 million of costs, equal to EPS of ($0.02), from discontinued operations. Net earnings for the 2007 third quarter of $266.6 million, or EPS of $0.92, included EPS of $0.68 from continuing operations and EPS of $0.24 from discontinued operations, which represent discontinued businesses and the retained costs of divested businesses. “Despite increasingly difficult market conditions in the third quarter, we delivered year-over-year revenue growth while reducing debt by $443 million and meeting our synergy expectations for the acquisition of Trane,” said Herbert L. Henkel, chairman, president and chief executive officer. We are also accelerating productivity and cost reduction actions and have undertaken a major company-wide restructuring to adjust our cost structure to offset slowing end market activity. “While the economic conditions for the foreseeable future will remain a challenge, I am more confident than ever that we will continue to improve our processes, reduce our costs and enhance our customer offerings to emerge as a stronger and better company.” “Air & Productivity Solutions aftermarket revenues were up 5%” Additional Highlights for the 2008 Third Quarter Revenues: The company’s reported revenues increased by 93% to $4,313.2 million compared with revenues of $2,239.0 million for the 2007 third quarter. Third quarter 2008 includes $2,051 million of revenues from Trane, which is reported as the Air Conditioning Systems and Services (ACSS) segment. On a pro forma basis, total revenues increased by 2% and were flat compared with 2007, excluding currency. Americas revenues increased by 1%, while revenues from overseas operations increased by approximately 4%. Operating Income and Margin: Reported operating income for the third quarter increased to $347.4 million compared with $276.3 million for the third quarter of 2007. Third quarter 2008 included approximately $122 million of one-time pre-tax costs related to the acquisition of Trane. Third-quarter reported operating margin was 8.1%. Excluding the one-time acquisition-related costs, third-quarter 2008 operating margins would have been 10.9%. Positive leverage from expense reductions, productivity actions and price increases were offset by unfavorable business and product mix in certain key business areas, currency translation and material inflation. www.airbestpractices.com 47 http://www.airbestpractices.com
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