) reported third quarter net income of $165.9 million or 56 cents
per share compared with $321.6 million or $1.03 in the
Adjusted EPS from continuing operations stood at $1.16 in the
reported quarter, which increased from $1.08 in the year-ago
quarter and beat the Zacks Consensus Estimate by 6 cents.
Quarterly revenues of $3,749 million beat the Zacks Consensus
Estimate of $3,727 million and rose 4% year over year. Revenues
from the U.S. were up 5%, while revenues from the International
segment were up 3%.
delivered sales of approximately $2.0 billion in the third
quarter, up 4% year over year. The year-over-year increase was
driven by slight increase in commercial HVAC revenues in
Americas, Europe and Asia and slight increase in revenues from
parts, services and solutions. Revenues from the Thermo King
sub-segment also increased by high-single digit percentage.
The Industrial Technologies
segment posted revenues of $722 million in the third quarter, up
3% year over year. Air and productivity revenues increased
slightly in the reported quarter as volume declines in the
Americas were offset by gains in Europe.
segment posted a solid 9% year-over-year increase in revenues to
$609 million. The increase in revenues was driven by the new
residential builder market and customers in the United States and
from increased sales to South American customers.
The Security Technologies
segment recorded sales of $392 million, flat year over year.
However, after adjusting the impact of product line transfer to
the Residential Solutions, revenues were up 5%.
Operating margin for the third quarter of 2013 was 10.0%
compared with 12.5% in the year-ago quarter. Adjusted operating
margin stood at 14.0%, up 1.4% year over. The year-over-year
adjusted margin improvement was driven by increased volume,
productivity initiatives and improved pricing, partially offset
by inflation and an increase in investment spending.
Balance Sheet and Cash Flows
As of Sep 2013, cash and cash equivalents aggregated $1.1
billion. Long-term debt stood at $3,154.1 million.
Net cash from operating activities for nine months ended Sep
2013 came in at $951.1 million compared with $735.5 million in
the prior year.
Capital expenditure for the nine months ended Sep 2013
increased to $187.6 million compared with $170.9 million in the
The company repurchased approximately 5 million shares for
approximately $320 million in the reported quarter as part of a
share repurchase program worth $2 billion. The company expects to
complete this program by the end of the first quarter of
Update on Spinoff
In Dec 2012, Ingersoll approved a plan to spin off its
commercial and residential security businesses. The company
expects the divestiture to be completed prior to 2013 end. The
new security company is an Irish plc named Allegion, which will
trade on the New York Stock Exchange under the ticker ALLE.
For fourth quarter 2013, Ingersoll projects revenues to be
between $3.5 billion and $3.6 billion. Adjusted EPS from
continuing operations is targeted to be in the range of 85 cents
to 90 cents, with reported EPS to be in the range of 45 cents to
For full year 2013, management expects revenues to be in the
range of $14.3 billion to $14.4 billion, with adjusted EPS from
continuing operations between $3.55 and $3.60. Reported EPS
is expected to be in the range of $2.34-$2.39.
The available cash flow is expected to be $1.1 billion by the
end of 2013.
Ingersoll-Rand currently has a Zacks Rank #2 (Buy). Other
stocks that look promising and are worth a look in the industry
Manitex International, Inc.
), carrying a Zacks Rank #1 (Strong Buy), and
), both carrying a Zacks Rank #2 (Buy).
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INGERSOLL RAND (IR): Free Stock Analysis
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