Must-know assessment: JANA Partners' positions in 4Q 2013 (Part 2 of 8)
JANA Partners disclosed a 2.41% new position in Allegion plc (ALLE), a $2 billion security solutions provider for homes and businesses. Allegion has seen hedge fund interest with Trian Partners and DE Shaw holding positions in the stock.
Ireland-based Ingersoll-Rand had confirmed the spin off in December 2012, after a strategic review to improve shareholder and company value. Activist firm Trian Partners, which acquired a 7% stake in Ingersoll-Rand in 2012 and a seat on the company’s board, was instrumental in pushing for a break up of the company that eventually culminated in the spin off of the security business. The division, according to news reports, accounts for 15% of Ingersoll-Rand’s revenue. After the spin off, Ingersoll reported its financial results as two segments—climate and industrial. For the fourth quarter, Ingersoll-Rand reported a profit of $47.6 million, or $0.16 a share, a decline from $235.6 million, or $0.78 a share due to a slowdown in the U.S. construction spending. The company said on its earnings call that industrial markets will remain slow, and that industrial production statistics have not improved in recent reports.
Allegion recently declared a quarterly dividend of $0.08 per ordinary share and authorized the repurchase of up to $200 million of shares. The company recently reported fourth quarter 2013 net revenues of $550.6 million, up by 0.8% compared to the prior year, and EPS from continuing operations of $0.10 per share. For the full year 2014, the company expects adjusted EPS from continuing operations of $2.25 to $2.40 per share and reported EPS from continuing operations of $1.95 to $2.15.
Allegion specializes in security around the doorway and beyond including: residential and commercial locks, door closers and exit devices, steel doors and frames, and access control and workforce productivity systems. Allegion comprises 23 global brands, including strategic brands CISA, Interflex, LCN, Schlage, and Von Duprin. Ingersoll-Rand’s industrial brands include Club Car, Schlage, Thermo King, and Trane.
Browse this series on Market Realist:
- Part 1 - Must-know assessment: JANA Partners’ positions in 4Q 2013
- Part 3 - JANA Partners established a new position in SiriusXM Holdings
- Part 4 - Why did JANA Partners buy a stake in Mondelez?
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