Ingersoll-Rand Misses Guidance on Higher Corporate Costs

   By Austen Hufford 
 

Ingersoll-Rand PLC (IR) said profit in the latest quarter fell short of its own guidance due to higher-than-expected corporate costs and a higher-than-forecast tax rate.

The maker of Trane air-conditioning equipment forecast 2017 adjusted earnings of $4.30 to $4.50 a share, and expects revenue growth of 2%. Analysts surveyed by Thomson Reuters expect earnings per share of $4.50.

The higher-than-anticipated corporate costs were related to stock-based incentive compensation and increased information technology infrastructure and security spending.

In all for the fourth quarter ended Dec. 31, the Irish company reported a profit of $198.8 million, or 75 cents a share, up from $233.5 million, or 88 cents a share, a year earlier. Excluding certain items, earnings were 84 cents.

Revenue rose 1% to $3.36 billion.

Analysts polled by Thomson Reuters had forecast earnings of 92 cents on $3.35 billion in revenue.

Selling and administrative expenses rose 5.6%.

Shares were inactive in premarket trading and are up 18% in the last three months.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

February 01, 2017 08:50 ET (13:50 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.