Compressed Air Best Practices - February 2009 - (Page 47)

Compressed Air Industry POWER PLANTS A | 02/09 | “Our operating margin performance was very good at 12.2%, equal to the same period last year and well above our minimum target of 11%. We did experience higher raw material costs early in our first quarter, which we have worked to offset through a combination of pricing actions with our customers and our internal cost reduction efforts. These efforts continue.” “While we had a solid start to our new fiscal year, we also foresee a challenging global economic environment in front of us. As a result, we have been proactively managing our business and working aggressively to reduce our expense levels. Our progress to date is evident as our operating expenses decreased to 20.4% of sales this quarter compared to 22% in the fourth quarter of FY08. We expect that the combination of our continued focus on operating expense controls, product and process cost reductions and the strength of our diversified portfolio of filtration businesses will allow us to achieve our 20th consecutive year of record earnings.” “We recognize that it is critical that we successfully manage through the current difficult economic climate. However, it is important to note that we also remain focused on our longer-term strategic objectives. Our recent acquisition of Western Filter was part of these plans.” Hamilton, Bermuda, December 18, 2008 — Ingersoll-Rand Company Limited (NYSE:IR), a leading diversified industrial firm, today announced that it has revised its estimated fourthquarter adjusted diluted earnings per share (EPS) to the range of $0.20 to $0.30 from continuing operations. This earnings estimate excludes non-recurring costs such as those related to the acquisition of Trane and restructuring costs. Management’s previous EPS estimate for the fourth quarter of 2008 was $0.55 to $0.75 from continuing operations. Full-year adjusted EPS from continuing operations are preliminarily projected to be in the range of $3.00 to $3.10 per share, before Trane related acquisition and restructuring costs, compared with a prior forecast of $3.35 to $3.55 per share. “Our initial forecast for the fourth quarter of 2008 was based on sharply lower growth expectations compared with the first half of the year as we anticipated weaker results in many of our key end markets,” said Herbert L. Henkel, chairman, president and CEO of Ingersoll-Rand Company Limited. “The rate of decline accelerated compared with prior expectations. We had lower than expected revenues in all of our business segments, primarily due to softer North American and sharply declining Western European markets. The rate of deterioration in European economic activity was especially severe over the last six weeks. The strengthening of the U.S. dollar against the Euro also amplified the year-over-year revenue decline. www.airbestpractices.com 47 http://www.airbestpractices.com

Table of Contents Feed for the Digital Edition of Compressed Air Best Practices - February 2009

Compressed Air Best Practices - February 2009 Contents From the Editor Utility-Air News Compressed Air Audit of the Month Air Standards Instrument Air in Nuclear Power Plants Seven Sustainability Projects for Industrial Energy Savings The Pneumatic Advantage Personal Productivity Resources for Energy Engineers Wall Street Watch Advertiser Index Classifieds

Compressed Air Best Practices - February 2009

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