Ingersoll Rand Lowers Fourth-Quarter and Full-Year 2008 Revenue and Earnings Estimates

HAMILTON, Bermuda--(Business Wire)--
Ingersoll-Rand Company Limited (NYSE:IR), a leading diversified industrial firm,
today announced that it has revised its estimated fourth-quarter adjusted
diluted earnings per share (EPS) to the range of $0.20 to $0.30 from continuing
operations. This earnings estimate excludes non-recurring costs such as those
related to the acquisition of Trane and restructuring costs. Management’s
previous EPS estimate for the fourth quarter of 2008 was $0.55 to $0.75 from
continuing operations. Full-year adjusted EPS from continuing operations are
preliminarily projected to be in the range of $3.00 to $3.10 per share, before
Trane related acquisition and restructuring costs, compared with a prior
forecast of $3.35 to $3.55 per share.

“Our initial forecast for the fourth quarter of 2008 was based on sharply lower
growth expectations compared with the first half of the year as we anticipated
weaker results in many of our key end markets,” said Herbert L. Henkel,
chairman, president and chief executive officer. “The rate of decline
accelerated compared with prior expectations. We had lower than expected
revenues in all of our business segments, primarily due to softer North American
and sharply declining Western European markets. The rate of deterioration in
European economic activity was especially severe over the last six weeks. The
strengthening of the U.S. dollar against the Euro also amplified the
year-over-year revenue decline.

“Projected fourth-quarter proforma revenues are expected to decrease by 11%
compared with 2007, to $3.7 billion, which is approximately 10% below our
initial forecast of $4.1 billion and includes approximately two percentage
points of negative impact from currency translation. Lower volume, unfavorable
mix, and several one-time cost items are negatively impacting operating earnings
for the quarter. Additionally, the increased value of the dollar is expected to
negatively impact earnings by approximately 15 cents per share compared with our
prior forecast for the quarter.

“We have accelerated our previously announced productivity actions for the
balance of the year and for 2009 to deal with the slowing environment, while
continuing to build a strong business for the future. We are realizing the
synergies from the recent acquisition of Trane and from our initiatives in
purchasing and Lean Six Sigma, which will produce even greater benefits in 2009.
We expect the Trane acquisition synergies to exceed $75 million in 2008 and we
are on track to realize an additional $125 million in 2009. We are also
targeting to capture significant material cost reductions in 2009 from the
recent sharp declines in key commodities.

“During the fourth quarter we initiated corporate-wide restructuring actions
that we announced in October to streamline our manufacturing footprint and
general and administrative cost base. The majority of these costs will be
incurred in 2008 and are expected to total approximately $110 million. These
actions are expected to generate $100 million of annual pre-tax savings in 2009
and over $110 million in 2010. We have accelerated the timing of the
restructuring and are developing additional cost reduction actions to offset
declining end markets.

“We continue to generate positive cash flow and we have sustained access to the
commercial paper markets. Since the acquisition of Trane in June, we have paid
down approximately $600 million of debt. We have significant available liquidity
with $3 billion of credit facilities, as well as additional opportunities to
access the cash on our balance sheet, expand our receivable securitization
program and improve our working capital management.

“Additionally, the company is currently conducting its annual impairment test of
goodwill and intangible assets which, because of the company’s recent low stock
price, could result in a non-cash impairment charge in the fourth quarter. Any
potential impairment charge will not impact our existing debt covenants or our
borrowing capacity under current credit arrangements. Our long-term business
fundamentals remain solid and we are working to ensure that Ingersoll Rand will
emerge from this economic slowdown as a stronger, more efficient company,” said
Henkel.

This news release includes "forward-looking statements" that involve risks,
uncertainties and changes in circumstances, which may cause actual results,
performance or achievements to differ materially from anticipated results,
performance or achievements. Political, economic, climatic, currency, tax,
regulatory, technological, competitive, and other factors could cause actual
results to differ materially from those anticipated in the forward-looking
statements. Additional information regarding these risk factors and
uncertainties is detailed from time to time in the company's SEC filings,
including but not limited to its report on Form 10-Q for the quarter ended
September 30, 2008.

Ingersoll Rand is a global diversified industrial firm providing products,
services and solutions to enhance the quality and comfort of air in homes and
buildings, transport and protect food and perishables, secure homes and
commercial properties, and enhance industrial productivity and efficiency.
Driven by a 100-year-old tradition of technological innovation, we enable
companies and their customers to create progress. For more information, visit
www.ingersollrand.com.

Media:
Paul Dickard, 201-573-3120
paul_dickard@irco.com
or
Investors and Financial Analysts:
Bruce Fisher, 732-980-6095
bruce_fisher@irco.com
or
Joe Fimbianti, 201-573-3113
joseph_fimbianti@irco.com

Copyright Business Wire 2008