Ingersoll-Rand posts 2Q profit, but results miss Wall Street estimates on weak industrial unit

MarketsAssociated Press

Ingersoll-Rand shares tumbled 6 percent after the company issued a weak forecast for the quarter and its second-quarter performance sent investors scattering.

The company, which makes Traine air conditioners, cited slowing growth in its industrial business.

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Ingersoll posted net income of $78.9 million, or 29 cents. Earnings, adjusted for non-recurring costs and to account for discontinued operations, came to $1.20 per share, which was 3 cents shy of expectations, according to a poll by Zacks Investment Research.

Its revenue of $3.6 billion also disappointed.

The company said its industrial business, which makes air compressors and power tools, were softer than expected.

"We saw signs of stabilization in recent weeks and are increasing productivity in the businesses where we see continued market weakness," said Chairman and CEO Michael Lamach, in a printed statement.

Industrial revenue fell 1 percent. Revenue from its climate unit, which makes air conditioners and refrigerators, rose 2 percent.

For the current quarter, Ingersoll-Rand expects its per-share earnings to range from $1.15 to $1.19. That's short of the $1.21 analysts are projecting, according to a poll by FactSet.

The company projected full-year earnings in the range of $3.66 to $3.81 per share. Analysts expect full-year earnings of $3.79.

Shares of Ingersoll-Rand Plc. fell $3.77 to $61.31 in afternoon trading.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on IR at http://www.zacks.com/ap/IR

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Keywords: Ingersoll-Rand, Earnings Report