We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Name | Symbol | Market | Type |
|---|---|---|---|
| Investec Bnk 24 | LSE:43PZ | London | Medium Term Loan |
| Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0 | - |
Hot Features
Premium
RNS Number:1887H
Ingersoll-Rand Co
19 July 2001
Ingersoll-Rand Reports Second-quarter Continuing Diluted EPS of 55 cents;
Results in Line with Revised Expectations
Woodcliff Lake, N.J., July 19, 2001 - Ingersoll-Rand Company (NYSE:IR), a
leading diversified industrial enterprise, today reported net earnings from
continuing operations of $91.0 million, excluding charges related to
restructuring and productivity investments, or diluted earnings per share (DEPS)
of 55 cents, for the second quarter ended June 30, 2001. These results were in
line with the company's revised expectations and compare to 2000 second-quarter
net earnings from continuing operations of $177.7 million, or DEPS of $1.09.
Reported net earnings for the second quarter of 2001 were $62.9 million, or DEPS
of 38 cents.
Revenues from continuing operations were $2.3 billion, an increase of 2%
compared to the second quarter of 2000. Revenues decreased by 9% compared to
last year, excluding the effects of a stronger dollar and Hussmann, which was
acquired June 14, 2000. The decline was primarily due to lower North American
revenues.
During the second quarter of 2001, IR continued its restructuring program to
reduce costs and accelerate productivity initiatives throughout the company.
After-tax charges for restructuring and productivity investments for the second
quarter of 2001 totaled $28.1 million, or DEPS of 17 cents, including $1.5
million for Dresser-Rand, which is classified as assets held for sale. These
charges include accrued restructuring costs, and period costs which are recorded
as incurred.
The total pre-tax cost of this program, which began in the third quarter of
2000, will be approximately $325 million and includes plant rationalizations,
organizational realignments, and the consolidation of "back office" business
processes. These investments, which will reduce company-wide headcount by
approximately 8%, are expected to be substantially completed by year-end 2001.
Second-quarter Business Review
The business sector review excludes the impact of charges for restructuring and
productivity investments.
The Climate Control Sector provides solutions to transport, preserve, store and
display temperature sensitive products and includes the market leading brands of
Thermo King and Hussmann.
A 30% growth in the bus air-conditioning and seagoing container businesses was
more than offset by the significant decline in the North American truck and
trailer market, continued weak truck and trailer results in Europe, and the
unfavorable effects of currency. As a result, total Thermo King revenues
decreased by 18% compared to 2000. A near-term recovery of the refrigerated
transport market is impeded by high levels of used truck and trailer equipment.
Reduced capital spending by several major United States supermarket chains
caused Hussmann revenues for the second quarter to fall short of expectations.
Current backlog and bid activity indicates that sales will increase in the
second half of the year, following the normal seasonal pattern.
Revenues for the sector increased by 53%, compared to the second quarter of
2000, as a result of the Hussmann acquisition. Operating margins decreased from
12.2% to 3.8% due to the inclusion of Hussmann results net of goodwill, a
significant decline in highly profitable truck trailer volume, and the
unfavorable effects of currency. The company continues to make progress in
capturing projected synergies resulting from the combination of Hussmann and
Thermo King.
Hussmann continued to develop its parts and service business with the
acquisition of National Refrigeration Services (NRS) in May. NRS expands
Hussmann's distribution and branch network to serve grocery chains in the
southeastern United States. This is the second major service company acquisition
related to the Hussmann business in 2001. These acquisitions have doubled the
Hussmann installation, service and parts revenues to more than $400 million
annually.
The Industrial Productivity Sector is composed of a diverse group of businesses
focused on providing solutions to enhance customers' industrial efficiency. The
North American industrial economy continued to decline in the second quarter,
which contributed to a decrease in sector revenues of approximately 11%.
Operating margins declined to 8.3% of revenues, compared to 14.3% in 2000.
Industrial Productivity consists of three businesses: Air Solutions, Bearings
and Components, and Industrial Products.
Air Solutions provides equipment and services for compressed air systems.
Declining U.S. industrial production resulted in decreased unit volume sales.
Total revenues declined by 5% and operating margins were down substantially
compared to the prior year's second quarter, primarily due to lower demand for
larger compressors used in industrial applications. The aftermarket business
continued to produce positive results with a 7% year-over-year growth in service
revenues.
Bearings and Components provides motion-control technologies for OEM and
aftermarket applications to both the automotive and industrial markets. Second
quarter revenues declined by 14% due to lower volumes in the U.S. automotive and
industrial equipment markets, and in the industrial bearings aftermarket.
Operating margins were 10.1% of revenues.
Industrial Products includes Club Car(R) golf cars and utility vehicles; tools;
fluid products equipment; and the company's independent power business. Revenues
for the quarter declined by 10% compared to 2000, primarily related to decreased
demand at Club Car and the fluid products business. Margins decreased to 8.0% of
revenues compared to 14.5% in 2000, principally due to lower volumes and
increased spending on new product introductions, particularly the PowerWorks(R)
microturbine. The Independent Power Sector continued to make progress in the
quarter with the 70 kilowatt PowerWorks microturbine. The company expects to
ship 75 to 100 units in the second half of 2001.
The Infrastructure Sector includes Bobcat(R) compact equipment and
Ingersoll-Rand(R) road pavers, compactors, portable-power products and drilling
equipment. While overall U.S. construction activity remains steady, new
equipment demand has declined. The sector's revenues were negatively impacted by
weaker demand in North American road development, portable power, and compact
equipment markets as well as dramatically reduced demand from large U.S. rental
companies. Sales to large rental customers declined by more than 70% compared to
last year. IR's market shares in this sector have remained steady despite
mounting competitive pressure. Although revenues declined by 9%, the
Infrastructure Sector generated operating margins of 14.2% of revenues, compared
to 18.8% in 2000.
The Security and Safety Sector includes architectural hardware products and
electronic access-control technologies. Activity levels declined in both U.S.
and European commercial and residential markets, offsetting higher electronic
solutions revenues that resulted mainly from Interflex, which was acquired in
August 2000. Second quarter revenues decreased by 3% due to inventory reductions
by commercial distributors and slowing consumer demand for residential products.
Operating margins remained at a strong 18.0% of revenues compared to 21.2% in
2000. Margins were affected by lower volumes and increased development spending
in the electronic security solutions business. The sector continued to
accelerate product and market related growth initiatives during the quarter. In
May, the Schlage business introduced the E-Bolt key management system, offering
programmable deadbolts with electronic keys for use in multifamily dwellings and
property management applications. In addition, the sector expanded its
geographic coverage with the acquisition in June of ITO Killit, a leading
Turkish manufacturer and distributor of security products.
Comparisons of Other Quarterly Income Statement Items
Interest expense for the quarter of $62.1 million was $6.8 million higher than
the 2000 second quarter due to the impact of the debt incurred for the purchase
of Hussmann. This increase was partially offset by lower year-over-year debt
levels in IR's other operations and a decline in interest rates.
Other/income (expense) totaled $10.2 million of net expenses for the second
quarter, compared to $16.7 million of net expenses in last year's second
quarter. The decline in expenses was primarily due to the conversion of the
company's equity linked securities into 8.3 million shares of IR common stock in
May 2001.
Results from assets held for sale represents the remaining portion of
Dresser-Rand (D-R) that was reclassified, in the third quarter of 2000, to a
single line item in continuing operations, net of taxes. D-R's reported
second-quarter net loss of $6.1 million included one-time after-tax charges of
$1.5 million for restructuring and productivity investments related to
organizational realignments. Excluding these charges, D-R's net loss amounted to
$4.6 million, compared to a $5.7 million net loss in the second quarter of 2000.
Dresser-Rand's end markets continue to improve and current backlog has increased
by almost $100 million compared to year-ago levels.
The company's effective tax rate for the second quarter of 2001, excluding D-R,
was 33.0%, compared to 33.7% in the second quarter of 2000. Excluding D-R and
restructuring charges, the effective full-year tax rate for 2001 and 2002 is
expected to be 33.0%, compared to 34.75% for 2000, reflecting the success of
ongoing tax planning initiatives.
2001 Outlook
"Diluted EPS from continuing operations for the full-year 2001 is forecast to be
in the range of $2.25 to $2.50, excluding charges related to restructuring. U.S.
demand is not forecast to recover in the near term. The earnings range also
reflects our increasing concerns about weakening European and Latin American
markets," said Herbert L. Henkel, chairman, president and chief executive
officer. The full-year earnings expectation includes traditional improvement in
second-half 2001 Hussmann and Dresser-Rand results, as well as contributions
from the restructuring program. Third-quarter earnings per share from continuing
operations before one-time charges are expected to be in the range of 45 to 55
cents.
"Our financial performance underscores the need to continue our strategy to
provide customers with solutions, thereby increasing our recurring service and
parts revenues, which today account for only 15% of total revenues. We have
completed four acquisitions this year and will continue to make strategic
investments, including the PowerWorks microturbine business. We are aggressively
managing the business, as evidenced by our restructuring program, which is fully
engaged with more than 20 factory closings in process. Cost reduction and
organizational realignment programs will position IR to be a leaner and stronger
company and deliver a rapid improvement in earnings once demand recovers," said
Henkel.
"Free cash flow remains a high priority in 2001 as we continue to aggressively
manage our working capital and capital expenditure programs. We are targeting
$300 million of free cash flow for full year 2001 before restructuring. Also, we
plan to pursue bolt-on acquisitions in 2001 in keeping with our long term growth
strategy. Despite the slower economic environment, we continue to make progress
in implementing our long range plan focusing on innovation, operational
excellence, and the integration of our acquisitions," said Henkel.
IR is a leading innovation and solutions provider for the major global markets
of Security and Safety, Climate Control, Industrial Productivity and
Infrastructure. The company's diverse product portfolio encompasses such leading
industrial and commercial brands as Schlage locks and security solutions; Thermo
King transport temperature control equipment; Hussmann commercial and retail
refrigeration equipment; Bobcat compact equipment; Club Car golf cars and
utility vehicles; Torrington bearings and components; PowerWorks microturbines;
and Ingersoll-Rand industrial and construction equipment. In addition, IR offers
products and services under many more premium brands for customers in industrial
and commercial markets. Further information on IR can be found on the company's
web site at www.irco.com.
This news release includes "forward-looking statements" that involve risks and
uncertainties. Political, economic, climatic, currency, tax, regulatory,
technological, competitive and other factors could cause actual results to
differ materially from those anticipated in the forward-looking statements.
Additional information regarding these risk factors and uncertainties is
detailed from time to time in the company's SEC filings, including but not
limited to its report on Form 10-Q for the three months ended March 31, 2001.
INTERESTED PARTIES IN THE UNITED KINGDOM
CAN OBTAIN COPIES OF THIS PRESS RELEASE
OR OTHER INFORMATION ON THE COMPANY
BY CONTACTING:
MR JOHN QUAYLE
FINANCIAL DIRECTOR
INGERSOLL-RAND SALES COMPANY LIMITED
EXECUTIVE HEADQUARTERS
U.K. OPERATIONS
P.O. BOX 2, CHORLEY NEW ROAD
HORWICH, BOLTON, BL6 6JN
01204-690690
INGERSOLL-RAND COMPANY
Consolidated Income Statement
Second Quarter and Six Months
(In millions except per share figures)
UNAUDITED
Three Months Six Months
Ended June 30, Ended June 30,
2001 2000 2001 2000
Revenues $ 2,285.6 $ 2,232.9 $ 4,405.2 $ 4,253.3
Cost of goods sold 1,782.8 1,614.8 3,420.5 3,096.4
Selling & administrative
expenses 319.1 269.6 625.5 539.1
Restructuring charges 8.3 - 30.0 -
Operating income 175.4 348.5 329.2 617.8
Interest expense (62.1) (55.3) (128.0) (103.5)
Other income/(expense) (10.2) (16.7) (12.4) (21.3)
Results from assets held
for sale (net of tax) (6.1) (5.7) (14.3) (13.6)
Earnings before taxes 97.0 270.8 174.5 479.4
Provision for taxes 34.1 93.1 62.3 170.0
Net earnings from continuing
operations 62.9 177.7 112.2 309.4
Discontinued operations (net
of tax) - (2.3) - 2.0
Net earnings $ 62.9 $ 175.4 $ 112.2 $ 311.4
Basic earnings per share
-Continuing operations $ 0.38 $ 1.10 $ 0.69 $ 1.92
-Discontinued operations - (0.01) - 0.01
$ 0.38 $ 1.09 $ 0.69 $ 1.93
Diluted earnings per share
-Continuing operations $ 0.38 $ 1.09 $ 0.69 $ 1.90
-Discontinued operations - (0.01) - 0.01
$ 0.38 $ 1.08 $ 0.69 $ 1.91
Average number of common
shares outstanding
Basic 164.1 161.5 162.5 161.7
Diluted 165.6 162.8 163.8 163.1
INGERSOLL-RAND COMPANY
Business Review
Second Quarter and Six Months
(In millions except percentages)
UNAUDITED
Three Months Six Months
Ended June 30, Ended June 30,
2001 2000 2001 2000
Climate Control
Revenues $ 610.3 $ 398.6 $ 1,125.4 $ 723.0
Operating income 11.5 48.8 1.1 87.5
and as a % of revenues 1.9% 12.2% 0.1% 12.1%
Industrial Productivity
Air Solutions
Revenues 205.9 217.8 402.6 414.4
Operating income 5.4 25.5 22.9 45.3
and as a % of revenues 2.6% 11.7% 5.7% 10.9%
Bearings & Components
Revenues 270.0 314.8 542.3 621.6
Operating income 20.4 50.2 35.7 82.8
and as a % of revenues 7.6% 15.9% 6.6% 13.3%
Industrial Products
Revenues 247.6 276.0 505.2 529.2
Operating income 19.1 39.9 52.8 76.1
and as a % of revenues 7.7% 14.5% 10.5% 14.4%
Industrial Productivity
Revenues 723.5 808.6 1,450.1 1,565.2
Operating income 44.9 115.6 111.4 204.2
and as a % of revenues 6.2% 14.3% 7.7% 13.0%
Infrastructure
Revenues 606.4 669.7 1,149.3 1,273.3
Operating income 82.7 126.0 145.0 222.9
and as a % of revenues 13.6% 18.8% 12.6% 17.5%
Security & Safety
Revenues 345.4 356.0 680.4 691.8
Operating income 56.3 75.3 110.6 138.2
and as a % of revenues 16.3% 21.2% 16.3% 20.0%
Total
Revenues $ 2,285.6 $ 2,232.9 $ 4,405.2 $ 4,253.3
Operating income 195.4 365.7 368.1 652.8
and as a % of revenues 8.5% 16.4% 8.5% 15.3%
Unallocated corporate
expense (20.0) (17.2) (38.9) (35.0)
---------- --------- -------- --------
Consolidated operating
income $ 175.4 $ 348.5 $ 329.2 $ 617.8
========== ========= ======== ========
and as a % of revenues 7.7% 15.6% 7.5% 14.5%
INGERSOLL-RAND COMPANY
Consolidated Income Reconciliation
Second Quarter
(In millions except per share figures)
UNAUDITED
2001 2000
Restructure
Reported and Other Adjusted Reported
Results Charges Results Results
Revenues $ 2,285.6 $ - $ 2,285.6 $ 2,232.9
Cost of goods sold 1,782.8 26.7 1,756.1 1,614.8
Selling & administrative
expenses 319.1 4.7 314.4 269.6
Restructuring charges 8.3 8.3 - -
---------- --------- --------- ---------
Operating income 175.4 (39.7) 215.1 348.5
Interest expense (62.1) - (62.1) (55.3)
Other income(expense) (10.2) - (10.2) (16.7)
Results from assets held
for sale (net of tax) (6.1) (1.5) (4.6) (5.7)
----------- --------- --------- ---------
Earnings before taxes 97.0 (41.2) 138.2 270.8
Provision for taxes 34.1 (13.1) 47.2 93.1
----------- --------- --------- ---------
Net earnings from
continuing operations 62.9 (28.1) 91.0 177.7
Discontinued operations
(net of tax) - - - (2.3)
----------- --------- --------- ---------
Net earnings $ 62.9 $ (28.1) $ 91.0 $ 175.4
=========== ========= ========= =========
Basic earnings per share
- Continuing operations $ 0.38 $ (0.17) $ 0.55 $ 1.10
- Discontinuing operations - - - (0.01)
----------- ---------- -------- --------
$ 0.38 $ (0.17) $ 0.55 $ 1.09
=========== ========== ======== ========
Diluted earnings per share
- Continuing operations $ 0.38 $ (0.17) $ 0.55 $ 1.09
- Discontinued operations - - - (0.01)
----------- ---------- -------- --------
$ 0.38 $ (0.17) $ 0.55 $ 1.08
=========== ========== ======== ========
Average number of common
shares outstanding:
Basic 164.1 164.1 161.5
Diluted 165.6 165.6 162.8
INGERSOLL-RAND COMPANY
Business Review Reconciliation
Second Quarter
(In millions except percentages)
UNAUDITED
2001 2000
Restructure
Reported and Other Adjusted Reported
Results Charges Results Results
Climate Control
Revenues $ 610.3 $ - $ 610.3 $ 398.6
Operating income 11.5 (11.6) 23.1 48.8
and as a % of revenues 1.9% 3.8% 12.2%
Industrial Productivity
Air Solutions
Revenues 205.9 - 205.9 217.8
Operating income 5.4 (7.7) 13.1 25.5
and a a % of revenues 2.6% 6.4% 11.7%
Bearings & Components
Revenues 270.0 - 270.0 314.8
Operating income 20.4 (6.9) 27.3 50.2
and as a % of revenues 7.6% 10.1% 15.9%
Industrial Products
Revenues 247.6 - 247.6 276.0
Operating income 19.1 (0.8) 19.9 39.9
and as a % of revenues 7.7% 8.0% 14.5%
Industrial Productivity
Revenues 723.5 - 723.5 808.6
Operating income 44.9 (15.4) 60.3 115.6
and as a % of revenues 6.2% 8.3% 14.3%
Infrastructure
Revenues 606.4 - 606.4 669.7
Operating income 82.7 (3.7) 86.4 126.0
and as a % of revenues 13.6% 14.2% 18.8%
Security & Safety
Revenues 345.4 - 345.4 356.0
Operating income 56.3 (6.0) 62.3 75.3
and as a % of revenues 16.3% 18.0% 21.2%
Total
Revenues $ 2,285.6 $ - $ 2,285.6 $ 2,232.9
Operating income 195.4 (36.7) 232.1 365.7
and as a % of revenue 8.5% 10.2% 16.4%
Unallocated corporate expense (20.0) (3.0) (17.0) (17.2)
--------- ---------- --------- ---------
Consolidated operating income $ 175.4 $ (39.7) $ 215.1 $ 348.5
========= ========== ========= =========
and as a % of revenues 7.7% 9.4% 15.6%
INGERSOLL-RAND COMPANY
Consolidated Income Reconciliation
Six Months Ended June 30,
(In millions except per share figures)
UNAUDITED
2001 2000
Restructure
Reported and Other Adjusted Reported
Results Charges Results Results
Revenues $ 4,405.2 $ - $ 4,405.2 $ 4,253.3
Cost of goods sold 3,420.5 39.1 3,381.4 3,096.4
Selling & Administrative
expenses 625.5 14.4 611.1 539.1
Restructuring charges 30.0 30.0 - -
--------- --------- --------- ----------
Operating income 329.2 (83.5) 412.7 617.8
Interest expense (128.0) - (128.0) (103.5)
Other income/(expense) (12.4) - (12.4) (21.3)
Results from assets held
for sale (net of tax) (14.3) (4.8) (9.5) (13.6)
--------- --------- -------- --------
Earnings before taxes 174.5 (88.3) 262.8 479.4
Provision for taxes 62.3 (27.6) 89.9 170.0
--------- ---------- -------- --------
Net earnings from
continuing operations 112.2 (60.7) 172.9 309.4
Discontinued operations
(net of tax) - - - 2.0
--------- ---------- -------- -------
Net earnings $ 112.2 $ (60.7) $ 172.9 $ 311.4
========= ========== ======== ========
Basic earnings per share
- Continuing operations $ 0.69 $ (0.37) $ 1.06 $ 1.92
- Discontinued operations - - - 0.01
--------- ---------- -------- ---------
$ 0.69 $ (0.37) $ 1.06 $ 1.93
========= ========== ======== ========
Diluted earnings per share
- Continuing operations $ 0.69 $ (0.37) $ 1.06 $ 1.90
- Discontinued operations - - - 0.01
--------- ---------- -------- --------
$ 0.69 $ (0.37) $ 1.06 $ 1.91
========= ========== ======== ========
Average number of common
shares outstanding:
Basic 162.5 162.5 161.7
Diluted 163.8 163.8 163.1
INGERSOLL-RAND COMPANY
Business Review Reconciliation
Six Months Ended June 30,
(In millions except percentages)
UNAUDITED
2001 2000
Restructure
Reported and Other Adjusted Reported
Results Charges Results Results
Climate Control
Revenues $ 1,125.4 $ - $ 1,125.4 $ 723.0
Operating income 1.1 (27.0) 28.1 87.5
and as a % of revenues 0.1% 2.5% 12.1%
Industrial Productivity
Air Solutions
Revenues 402.6 - 402.6 414.4
Operating income 22.9 (9.8) 32.7 45.3
and as a % of revenues 5.7% 8.1% 10.9%
Bearings & Components
Revenues 542.3 - 542.3 621.6
Operating income 35.7 (15.7) 51.4 82.8
and as a % of revenues 6.6% 9.5% 13.3%
Industrial Products
Revenues 505.2 - 505.2 529.2
Operating income 52.8 (1.6) 54.4 76.1
and as a % of revenues 10.5% 10.8% 14.4%
Industrial Productivity
Revenues 1,450.1 - 1,450.1 1,565.2
Operating income 111.4 (27.1) 138.5 204.2
and as a % of revenues 7.7% 9.6% 13.0%
Infrastructure
Revenues 1,149.3 - 1,149.3 1,273.3
Operating income 145.0 (10.6) 155.6 222.9
and as a % of revenues 12.6% 13.5% 17.5%
Security & Safety
Revenues 680.4 - 680.4 691.8
Operating income 110.6 (13.2) 123.8 138.2
and as a % of revenues 16.3% 18.2% 20.0%
Total
Revenues $ 4,405.2 $ - $ 4,405.2 $ 4,253.3
Operating income 368.1 (77.9) 446.0 652.8
and as a % of revenues 8.4% 10.1% 15.3%
Unallocated corporate
expense (38.9) (5.6) (33.3) (35.0)
--------- --------- ---------- ---------
Consolidated operating income $ 329.2 $ (83.5) $ 412.7 $ 617.8
========= ========= ========== =========
and as a % of revenues 7.5% 9.4% 14.5%
1 Year Investec Bnk 24 Chart |
1 Month Investec Bnk 24 Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
