Published February 01, 2013
Ingersoll-Rand Plc reported a 2.7 percent drop in earnings on weak demand for its heating and cooling systems and other industrial equipment.
The U.S. manufacturer, which is spinning off its security business, said on Friday that fourth-quarter net profit fell to $235.6 million, or 78 cents per share, from $242.2 million, or 76 cents per share, a year earlier.
Factoring out one-time items, the company earned 76 cents per share, better than analysts' average estimate of 70 cents, according to Thomson Reuters I/B/E/S.
The company last month said it will spin off its security business, which makes Schlage and Kryptonite locks, and buy back $2 billion of its shares in response to pressure from activist investor Nelson Peltz.
It laid out its 2013 financial targets on Friday modeled on its current, prebreakup structure. The company forecast full-year adjusted operating earnings of $3.45 to $3.65 per share, a figure that excludes an expected 40 cents to 60 cents in charges related to the spinoff.
At its midpoint, that would represent profit growth of about 8 percent, excluding the spinoff costs.