Ingersoll Rand increases revenue by 8%
Ingersoll Rand boosts revenue, continues to face challenges
Ingersoll Rand has announced that total reported revenues increased by 8% for the third quarter of 2010, compared with the 2009 third quarter.
“Our third-quarter 2010 operating income was up 26% year-over-year, and our earnings per share were at the top of our forecast range,” said Michael W. Lamach, chairman, president and CEO.
“We are seeing improvement in several of our key markets, including global demand for refrigerated transport and industrial and commercial HVAC in Asia.”
The company’s four segments include: Climate Solutions, which includes Trane commercial HVAC systems, Hussmann and Thermo King businesses; Industrial Technologies, which includes air and productivity solutions; Residential Solutions, which includes the residential HVAC and security businesses; and Security Technologies, which includes the commercial security businesses.
On a year-over-year basis, total commercial HVAC revenues increased 6% (up 6% excluding currency), with a 3% increase (up 2% excluding currency) in equipment and systems revenues, and an 11% increase (up 11% excluding currency) in parts, services and solutions.
Commercial revenues, excluding currency, increased in all major geographic regions, with strong year-over-year improvements in China and South America. Equipment revenue in North America declined in the quarter, constrained by sluggish non-residential construction markets.
However, the year-over-year rate of decline has diminished since the first half of 2010, and the North American equipment market appears to be reaching a cyclical bottom. Third-quarter bookings were flat compared with last year, primarily due to more difficult comparisons in service and contracting, as a result of several large performance contracts awarded in the third quarter of 2009. Equipment bookings were up 4%, as growth in China more than offset flat orders in North America and Europe.
Residential HVAC revenues increased 4% compared with 2009 despite a 1% decline in North American HVAC market shipments. The improved sales are attributable to a positive product mix in air-con systems, and from market share gains. Bookings increased by 8% compared to 2009.
“A number of Ingersoll Rand’s major end markets continued to recover in the third quarter of 2010, although some notable challenges remain,” said Lamach. Third-quarter orders were up about 10%, excluding currency, compared with last year.
“There are sustained recoveries in the worldwide industrial and refrigerated transport markets, global parts and service activity and across most of the company's businesses in Asia," said Lamach.
"The North American residential HVAC market is also slowly recovering from four years of declining volumes. However, the company faces challenges as US and European non-residential construction markets are expected to constrain results for Trane commercial HVAC equipment and commercial security for the balance of the year.
“Our internal business fundamentals continued to improve in the third quarter. We have globally-recognised brands and leading market shares in all of our key businesses. Our balance sheet is solid and improving. As the recovery of the world economy progresses, we will continue to invest in new products and innovation. We will relentlessly strive to improve our operations and become a more efficient company,” said Lamach.