Ingersoll results beat estimates as U.S. housing recovers
(Reuters) - Ingersoll-Rand Plc (IR.N), the maker of Trane air conditioners and Thermo King refrigeration units, reported better-than-expected quarterly results, helped by rising demand for heating and cooling systems in a rebounding U.S. housing market.
Permits for construction of single-family homes hit a five-year high in August, underscoring the housing market's resilience even as mortgage rates rise.
Ingersoll's shares were marginally higher at $63.55 in premarket trading on Friday.
Sales in the company's heating, ventilation and air conditioning systems division, the company's largest, rose 4 percent to $2.03 billion in the third quarter ended September 30 while bookings increased 7 percent.
Revenue in the division that makes Schlage and Kryptonite locks rose 9 percent to $609 million.
Sales in Ingersoll's industrial technologies business, which makes compressed air systems, tools, fluid power equipment and golf and utility vehicles, rose 3 percent to $722 million.
Third-quarter net income fell 48 percent to $165.9 million, or 56 cents per share, from $321.6 million, or $1.03 per share, a year earlier. Revenue rose 4.3 percent to $3.75 billion.
Excluding items, the company earned $1.16 per share from continuing operations. Analysts on average had expected earnings of $1.10 per share on revenue of $3.73 billion, according to Thomson Reuters I/B/E/S.
Ingersoll's current-quarter forecast missed analysts' estimates, however, suggesting the company expects the housing market to slow as mortgage rates increase.
Ingersoll said it expects fourth-quarter adjusted earnings from continuing operations of 85 cents to 90 cents per share, falling short of the average analyst estimate of 94 cents.
The company said it expects sales of $3.5 billion-$3.6 billion for the current quarter. Analysts on average expect revenue of $3.6 billion.
(Reporting by Siddharth Cavale and Rohit T. K. in Bangalore; Editing by Ted Kerr)
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