Ingersoll-Rand 4Q adj. profit tops Street's view

Ingersoll-Rand 4th-quarter adjusted profit and revenue beat analysts' estimates

Associated Press

NEW YORK (AP) -- Ingersoll-Rand's net income dropped 3 percent in the fourth quarter, hurt in part by a larger provision for income taxes.

Its adjusted earnings and revenue topped Wall Street's view. Shares rose in morning trading on Friday.

The maker of air conditioning systems for homes and businesses, security systems and locks, and other products earned $235.6 million, or 78 cents per share, for the three months ended Dec. 31. That compares with $242.2 million, or 76 cents per share, in the final period of 2011.

Taking out a penny per share from tax benefits related to the sale of its Hussman refrigeration business and an equal amount from discontinued operations, earnings from continuing operations were 76 cents per share.

The per share results reflect 4 percent fewer shares outstanding in the recent quarter.

Analysts, on average, expected earnings of 71 cents per share, according to data provider FactSet.

Shares of Ingersoll-Rand gained 35 cents to $51.74 in morning trading.

The company's provision for income taxes more than tripled to $69 million from $18.2 million a year earlier.

Revenue dipped 1 percent to $3.47 billion from $3.51 billion. When removing the Hussman business, revenue was flat.

Wall Street expected $3.45 billion in revenue.

Revenue for the industrial technologies segment climbed 3 percent, while climate solutions revenue fell 3 percent.

Revenue for the security technologies division rose about 7 percent. Residential solutions revenue declined due to lower sales to some of its customers.

Ingersoll-Rand PLC's full-year net income jumped to $1.02 billion, or $3.28 per share. In the prior year the Swords, Ireland-based company earned $343.2 million, or $1.01 per share.

Adjusted earnings from continuing operations came in at $3.29 per share.

Revenue for the year fell 5 percent to $14.03 billion from $14.78 billion.

Looking ahead, Ingersoll-Rand expects 2013 adjusted earnings from continuing operations between $3.45 and $3.65 per share. Revenue is forecast in a range of $14.2 billion to $14.6 billion. Analysts foresee full-year earnings of $3.61 per share on revenue of $14.49 billion, on average.

First-quarter adjusted earnings from continuing operations are predicted between 35 cents and 40 cents per share on revenue of $3.1 billion to $3.2 billion.

Wall Street was forecasting first-quarter earnings of 47 cents per share on revenue of $3.16 billion.

The company said Friday that the planned spinoff of its commercial and residential security businesses is expected to be completed before the end of the year. Once the spinoff closes, Ingersoll-Rand will operate as a standalone company and the new security company will function on its own. Ingersoll-Rand won't have any ownership stake in the new security company, which will be publicly traded.

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