Ingersoll-Rand 3Q Profit Falls Sharply on Weak Consumer Sales
Ingersoll-Rand (NYSE:IR) reported on Thursday much weaker third-quarter earnings on a slowdown in U.S. sales as consumer sentiment continued to weaken.
The company also offered a forecast for the current quarter that is below Wall Street estimates.
The Dublin-based diversified manufacturer of heating and cooling systems posted net earnings of $86.2 million, or 25 cents a share, down from $232.2 million, or 68 cents a share, in the same quarter last year.
Excluding one-time charges related to the sale of its Hussmann business, the company earned 81 cents a share, which is ahead of average analyst estimates polled by Thomson Reuters of 79 cents.
Revenue for the three months ended Sept. 30 was $3.9 billion, up 5% from $3.7 billion a year ago, virtually matching the Street’s view of $3.91 billion. A 10% increase in its international markets helped to offset a slight drop in U.S. sales.
The company continues to see challenging economic conditions in its residential heating ventilation and air conditioning, security and golf businesses, according to Ingersoll-Ran CEO Michael Lamach.
“Although our residential and consumer markets remain depressed, there are a number of opportunities well within our control to improve our earnings and margins going forward,” he said.
The maker of Schlage locks and Trane air conditioners said sales were higher in its climate solution business, which includes heaters and cooling systems for commercial buildings. But the same systems made for homes were weaker due to the depressed consumer market.
For the current period, Ingersoll-Rand sees earnings between 64 cents and 70 cents, below analyst estimates of 70 cents. For the full-year, the company expects to book earnings in the range of $2.70 to $2.76 a share. Wall Street is predicting a profit of $2.74.