Trading Statement

RNS Number:1317G
Ingersoll-Rand Co
29 June 2001


Contact:  Paul Dickard (Media) 
          [phone]

          Joseph Fimbianti (Analysts) 
          [phone]


Ingersoll-Rand Revises Earnings Estimate for Second-quarter and Full-year 2001

Woodcliff Lake, N.J., June 28, 2001 - Ingersoll-Rand Company (NYSE:IR), a
leading diversified industrial enterprise, today announced that it expects
second-quarter diluted earnings per share (DEPS) from continuing operations to
be 25% to 30% below the current analyst consensus of 77 cents per share,
excluding one-time charges related to its restructuring program. The revised
estimate is attributed to lower volume and margin compression caused by lower
absorption, product mix and lower pricing.

The company initially expected a 7% revenue decline for the quarter; demand
levels for April and May were consistent with these expectations. However,
volumes for the month of June are now anticipated to be down 11% to 12% compared
to last year, excluding Hussmann. Total revenues are weaker than expected in all
four sectors and are forecast to decline by almost 10% compared to last year's
second quarter, excluding the mid-2000 Hussmann acquisition.

The Climate Control Sector has been impacted by the worldwide decline in demand
for transport refrigeration and cautious spending for refrigerated display cases
by major U.S. supermarkets. A recovery in the refrigerated transport market is
impeded by the high levels of used equipment.

The Security and Safety Sector results continue to be affected by inventory
liquidation by commercial distributors and weak consumer demand at the retail
level. The business is particularly sensitive to the domestic economy given its
large presence in the U.S. market.

While overall U.S. construction activity remains steady, new equipment demand in
the Infrastructure Sector has declined. Equipment dealers have retrenched by
liquidating inventories as end users and national rental customers extend the
replacement cycle for their equipment.

The Industrial Productivity Sector is heavily influenced by the ongoing
recession in the U.S. industrial economy. The U.S. Industrial Production Index
has been down for eight consecutive months and U.S. capacity utilization was off
sharply in April compared to last year. Durable goods orders in May are almost
12% below prior year. This pattern is expected to continue for the foreseeable
future.


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 expected to recover in the near term. The earnings range reflects
our increasing concerns about European and Latin American markets," said Herbert
L. Henkel, chairman, president and chief executive officer. The full year
earnings expectation includes a significant seasonal improvement in second half
2001 Hussmann results and the contribution from restructuring.

"Our financial performance underscores the need to continue our strategy to grow
our recurring service and parts revenues, which today account for only 15% of
total revenues. We will also continue to make strategic investments, including
the PowerWorks microturbine business. We are aggressively managing the business,
as our restructuring program is fully engaged with approximately 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.


Conference Call

IR will host a conference call to discuss this announcement at 9:00 am, EST, on
Friday, June 29, 2001. Participants will need the following information to join
in the teleconference call:

Date; June 29, 2001
Conference call start time: 9:OOAM, EST
Call-in number: [phone]

An instant replay of this call will be available on the afternoon of June 29,
2001. Until July 6, 2001, the replay can be accessed by dialing [phone],
passcode is 636339.

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; Huasmann 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 quarter 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