Ingersoll-Rand's Numbers on Weak Housing Market, Hit Estimates

Ingersoll-Rand said Q1 earnings dropped 14% to $217 million ($0.70/share) on weak U.S. markets and higher commodity costs. Revenue was up 6% to $2.67 billion. Earnings and revenue were both in line with Thomson Financial estimates. The company gave Q2 guidance of $0.93-$0.98/share and full-year guidance of 'record earnings' of $3.45-3.55. The company said weak U.S. home construction depressed demand for its Bobcat machines; revenue from its compact vehicle segment were down slightly, and profits slid 18%. The company said strong international growth (18%) helped offset weak domestic revenue, which was down slightly. Ingersoll said it expects to spend $2 billion this year on share repurchases and acquisitions. Shares are up 4.5% over the past 12 months, lagging both the broad market and other diversified industrial companies.

Sources: Press release, MarketWatch, Reuters
Commentary: Ingersoll Rand's Recent 8-K: When Less Is More • Ingersoll-Rand Trying To Recover From Housing Slowdown • Volvo Buys Ingersoll Rand Road Construction Equipment Unit for $1.3B in Cash
Stocks/ETFs to watch: Ingersoll-Rand Co. Ltd. (IR). Competitors: Emerson Electric Company (EMR), Johnson Controls Inc. (JCI), Terex Corp. (TEX)

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