Compressed Air Best Practices - November 2008 - (Page 48) | 11–12/08 Compressed Air Industry STEEL & METALS | WALL STREET WATCH Third-Quarter Business Review The company classifies its businesses into four reportable segments based on industry and market focus: Air Conditioning Systems and Services (added on June 5 with the acquisition of Trane), Climate Control Technologies, Industrial Technologies and Security Technologies. Air Conditioning Systems and Services (ACSS), which represents the results of Trane, provides systems and services that enhance the quality and comfort of the air in homes and non-residential buildings. Reported revenues for the quarter were $2,051 million with operating income of $89.5 million. Third-quarter operating income included $108 million of one-time acquisition-related costs. Excluding one-time costs, third-quarter operating margins would have been 9.6%. Total pro forma revenues for the third quarter increased by 3%. On a yearover-year pro forma basis, commercial equipment and systems revenues increased by 6%, with a 1% improvement in equipment revenue and a 13% increase in parts, services and solutions. Commercial revenue growth was balanced in the quarter with North America revenues up by 3% and international revenue growth up by 12%. Residential revenues declined by 4% in the third quarter due to continuing weakness in the U.S. housing market. Climate Control Technologies provides solutions to transport, preserve, store and display temperature-sensitive products, and includes the market-leading brands of Hussmann® and Thermo King®. Revenues for the sector of $895 million increased by approximately 1% compared with the third quarter of 2007. Third-quarter 2008 operating margin increased slightly to 11.5%, compared with 11.3% in the 2007 third quarter. The margin increase was due to operational improvements and higher price realization, which were partially offset by increased material costs and unfavorable product mix. Total worldwide refrigerated trailer and truck revenues declined by 6%, reflecting the decline of the heavy truck market. Sea-going container sales OCTOBER 27, 2008 PRICE PERFORMANCE SYMBOL LAST PRICE 1 MONTH 6 MONTHS 12 MONTHS Parker-Hannifin PH $34.58 -30.7% -53.5% -52.7% Ingersoll-Rand IR $16.01 -46.7% -60.4% -65.7% Gardner Denver GDI $21.58 -42.8% -56.3% -40.6% United Technologies UTX $45.18 -22.3% -34.9% -37.5% Donaldson DCI $29.03 -31.0% -30.1% -28.0% EnPro Industries NPO $24.42 -32.8% -31.2% -36.0% SPX Corp SPW $38.99 -49.5% -64.0% -55.9% 48 www.airbestpractices.com http://www.airbestpractices.com
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