Feb 11 Ingersoll-Rand Plc, the maker of
Trane air conditioners and Thermo King mobile refrigeration
units, forecast first-quarter profit below analysts' estimates,
hurt partly by weak U.S. construction spending in a
The diversified U.S. manufacturer forecast first-quarter
adjusted earnings of 23-28 cents per share, below the average
analyst forecast of a profit of 34 cents per share.
Construction spending barely rose in December and U.S.
manufacturing activity slowed sharply in January on the back of
the biggest drop in new orders in 33 years.
"Most investors have expected a conservative guide from IR
(Ingersoll-Rand) at this point, though this may be a little
lower than expected," Jefferies & Co analyst Steve Volkmann
wrote in a note.
Ingersoll is more sensitive than other U.S. industrials to
the housing and commercial construction markets as they account
for about 60 percent of the company's annual revenue.
A recovering U.S. housing market and strong construction
spending in October and November boosted demand for Ingersoll's
heating and cooling systems in the fourth quarter ended Dec. 31.
Revenue at the company's climate solutions business rose 8
percent to $2.32 billion.
Total revenue rose 6 percent to $3.10 billion. Analysts on
average had forecast $3.03 billion, according to Thomson Reuters
The company's net income from continuing operations
attributable to common shareholders more than halved to $77.7
million, or 26 cents per share, from $162.1 million, or 53 cents
per share, a year earlier.
Excluding items related to the spin-off of its security
business, Allegion Plc, Ingersoll earned 61 cents per
share, in line with estimates.
Ingersoll's shares were down 1 percent at $58.40 before the
bell on Tuesday. They have risen 3.6 percent since Ingersoll
completed the spin-off on Dec. 1, compared with a 0.33 percent
decline in the broader S&P 500 index in the same period.