) reported a net income of $235.6 million or 78 cents compared
with $242.2 million or 76 cents in the earlier-year quarter. The
quarterly earnings beat the Zacks Consensus Estimate of 70
For fiscal 2012 the company reported adjusted EPS of $3.28
versus $1.01 in the year ago quarter. The fiscal earnings
were ahead of the Zacks Consensus estimate of $3.23. The
increase in earnings for fiscal 2012 was driven by strength in
Revenues amounted to $ 3470 million compared with revenues of
$3,507 million in 4Q11. Moreover, sales beat the Zacks Consensus
Estimate of $3449 million. For Fiscal 2012 revenues declined 5%
year over year to $14,035 million.
Segment-wise, Climate Solutions delivered sales of
approximately $1.8 billion in fourth quarter down 3% year over
year. The year-over-year decline in revenue was primarily
due to flat HVAC revenues with some decline in equipment and
systems, offset by increased revenues from parts, services and
The Industrial Technologies segment posted revenues of $765
million in fourth quarter up 3% year over year. The increase was
driven by gain in oil free air compressor sales.
Revenues from the Residential Solutions segment decreased 5%
year over year to $422 million in the reported quarter. The
decrease in revenue was driven by lower sales to customers.
Finally, the Security Technologies segment recorded sales of
$445 million, up 7% year over year in the reported quarter,The
year-over-year increase was primarily due to the increase in
sales in the Americas and strong growth in Asia.
Adjusted operating margin for the fourth quarter of 2012 came
in at 10.6% compared with 9.7% in the year-ago quarter. The
company's improved price structure and operational excellence
neutralized the negative effects of inflationary pressures,
unfavorable revenue mix and higher investment spending which
resulted in the annual rise in operating margin in the
Balance Sheet and Cash Flows
As of Dec, 2012 Cash and cash equivalents amounted to $882.1
million down from $1106.7 million at the end of the previous
year. Long-term debt was $2,269.3 million versus $2,879.3 million
in the year-ago period.
Net cash from operating activities as of Dec 2012 amounted to
$1180.9 million. Capital expenditure for the period was $262.6
In fourth quarter 2012, Ingersoll-Rand purchased 10 million
shares and purchased a total of 18.4 million shares worth $840
million in 2012.
Spin-off of Commercial and Residential Security
In Dec 2012, Ingersoll Rand approved a plan to spin off its
commercial and residential security businesses. The separation
will result in two standalone companies: Ingersoll Rand and the
new security company.
The company expects the spin-off to be completed prior to
year-end 2013. Post completion, Ingersoll-Rand plc will cease to
have any ownership stake in the new security company and the new
security company will become an independent publicly traded
For first quarter 2013, Ingersoll-Rand projects revenues to be
between $3.1billion and $3.2 billion. . EPS from continuing
operations is targeted to be in the range of 35 cents - 40
For Fiscal 2013, management expects revenues to be in the
range of $14.2 billion to $14.6 billion with EPS from continuing
operations between $3.45- and $3.65. The available cash flow is
expected to be $1.1 billion by the end of 2013.
Refrigerated transport markets and commercial HVAC replacement
activity are expected to witness slow year-over-year growth,
especially in Europe which would experience low economic growth
in 2013. The North American consumer market, especially
residential HVAC, would be on the path to recovery in fiscal
The North American non-residential construction market is
expected to continue with its weak demand pattern with moderate
growth in commercial markets, partially offset by weakness in
institutional markets. Going forward Ingersoll-Rand expects
moderate growth in industrial markets, global parts and services
and across most of the company's businesses in Asia and Latin
However, the company operates in an intensely competitive
landscape that includes big players such as
Altra Holdings, Inc
Gorman- Rupp Co
ALTRA HOLDINGS (AIMC): Free Stock Analysis
GORMAN RUPP CO (GRC): Free Stock Analysis
IDEX CORP (IEX): Free Stock Analysis Report
INGERSOLL RAND (IR): Free Stock Analysis
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Ingersoll-Rand currently has a Zacks Rank #3 (Hold). One of its
) carries a Zacks Rank #2 (Buy).