Ingersoll-Rand and Illinois Tool Works Under StockCall Scrutiny: Cautious Outlook for 2013

Thu Feb 7, 2013 8:02am EST

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Ingersoll-Rand and Illinois Tool Works Under StockCall Scrutiny: Cautious Outlook for
2013

LONDON, February 7, 2013 /PRNewswire/ --

    Following a year of uncertainty, 2013 has begun on a solid note for the global
economy. Data out from U.S. has pointed to ongoing economic recovery. Economic growth in
China is starting to accelerate. Eurozone is also stabilizing. Despite these
improvements, diversified machinery companies such as Ingersoll-Rand Plc (NYSE : IR) and
Illinois Tool Works Inc. (NYSE : ITW) have been cautious in their outlook for 2013.
StockCall free technical reports on Ingersoll-Rand and Illinois Tool Works can be
accessed by registering at http://www.stockcall.com/research  

    Improving Economic Data in U.S. and China  

    Recent economic data from the world's two biggest economies, U.S. and China, has
been very encouraging. While data such as industrial production and construction
spending in the U.S. points to continuing recovery, better-than-expected fourth quarter
GDP in China suggests that the economic activity in the country is picking up again.
These are positive developments for Ingersoll-Rand and Illinois Tool Works. Sign up for
the free technical analysis on Illinois Tool Works at
http://www.StockCall.com/ITW020713.pdf  

    In addition, the Eurozone has also stabilized, with the worst of the debt crisis now
behind it. In Japan, the Bank of Japan (BOJ) has implemented aggressive monetary easing
measures to boost economic growth.  

    Certainly, the outlook for 2013 has significantly improved.  

    But Diversified Machinery Companies are Cautious  

    Although improving fundamentals of the global economy should benefit diversified
machinery companies, Ingersoll-Rand and Illinois Tool Works recently gave cautious
outlook for 2013.  

    Last week, Ingersoll-Rand said that it expects moderate growth in industrial markets
in 2013.The company also expects moderate growth in global parts and service, and across
most of its businesses in Asia and Latin America. Register now for the complete
technical research on Ingersoll-Rand at  

    http://www.StockCall.com/IR020713.pdf  

    Ingersoll-Rand said that refrigerated transport markets and commercial HVAC
replacement activity are likely to show slow year-over-year growth, particularly in
Europe where performance has been impacted by low economic growth in important markets. 


    Ingersoll-Rand's sentiment was echoed by Illinois Tool Works last week. The company
said that 2013 will be characterized by modest growth for North American and
international geographies. For 2013, Illinois Tool Works expects total organic revenue
growth to be between 1% and 3%. The company forecast 2013 diluted income per share from
continuing operations to be between $4.13 and $4.37.  

    Ingersoll-Rand, meanwhile, expects full-year 2013 revenue to be between $14.2
billion and $14.6 billion and full-year adjusted earnings per share from continuing
operations to be between $3.45 and $3.65.  

    Solid Results Despite Challenging Environment  

    Despite the challenging macro environment, both Ingersoll-Rand and Illinois Tool
Works delivered solid results in the fourth quarter of 2012.  

    For the fourth quarter of 2012, Ingersoll-Rand posted net earnings of $235.6
million, or $0.78 per share.  

    Michael W. Lamach, Ingersoll-Rand's Chairman and CEO noted in 2012, the company
improved the strength of its business operations, delivering increased operating
margins, and a 23% improvement in adjusted earnings per share despite a challenging
economic backdrop in number of its key end markets.  

    Meanwhile, Illinois Tool Works reported fourth quarter income per share from
continuing operations of $2.10. E. Scott Santi, President and CEO of Illinois Tool
Works, noted that in 2012, the company grew its adjusted earnings per share 10% and
improved operating margins by 50 basis points.  

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