Ingersoll-Rand (NYSE:IR) slashed its third-quarter and fiscal earnings outlook on Friday, citing slower-than-expected demand that weakened revenue in some of its top consumer- and commercial-related businesses in North America.
The Dublin-based maker of various industrial and commercial products said it now expects earnings from continuing operations to be in the range of 77 cents to 80 cents a share, which is lower than its earlier range of 85 cents to 95 cents.
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Revenue for the period is expected to be between $3.90 billion and $3.95 billion, including approximately $200 million from Hussmann. The midpoint of the revised range is $175 million lower than its earlier guidance between $4.05 billion and $4.15 billion.
The company blamed the bleak outlook on soft end-markets in consumer-related businesses such as residential heating, ventilation, air conditioning, golf and residential security segments. Ingersoll-Rand said those businesses accounted for the majority of volume declines since the company last updated its forecast.
Commercial security activity was also slower than the company had expected, partially offset by stronger revenues in its transport, industrial and commercial HVAC segments.
For the full-year, Ingersoll-Rand predicts earnings in the range of $2.70 to $2.80 a share, softer than its previous outlook of $2.90 to $3.10 a share.
The company also lowered its fiscal revenue guidance, now expecting sales between $14.85 billion and $15 billion, down from its earlier view of $15.30 billion to $15.50 billion.
The diversified manufacturer attributed the declines to lower-than-expected demand level in its key North American residential and commercial security markets, and the strengthening dollar against the Euro.
Ingersoll-Rand is scheduled to report third-quarter earnings on Oct. 20.