Ingersoll-Rand (IR) +12.57%
Ingersoll-Rand topped fourth quarter earnings estimates as the company benefited from large synergies from their recent acquisition of Trane.
Fourth-quarter revenues were lower in each operating segment, with revenue declines ranging from high single-digits to high-teens. Operating margins also came under pressure during the quarter, dropping to 7.5 percent from 9.2 percent.
On the bright side, the profit decline was partially offset by synergies from the Trane acquisition that exceeded expectations. Even more, Ingersoll-Rand expects to generate $175 million to $185 million of additional savings in 2009, which would exceed the prior forecast of $125 million.
Looking ahead, Ingersoll-Rand said it expects declining activity in most of its end markets, leading 2009 revenues to decline between 8 percent and 9 percent. While revenue guidance met consensus estimates, earnings projections of -$0.15 to breakeven are far off from the $0.27 consensus.
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