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SWORDS — Ingersoll-Rand PLC reported its third-quarter earnings slipped 5 percent as revenue tumbled 19 percent amid weak economic conditions that have depressed demand for its products and services that range from air conditioning to electronic security systems.
Chairman and CEO Herbert L. Henkel said, "We continue to see challenges in our major end markets, which were essentially flat compared with the second quarter."
He said fourth-quarter results "will continue to be negatively influenced by the ongoing difficult economic conditions."
Net income fell to $216.6 million, or 65 cents per share, for the three months ended Sept. 30. That compares with $227.7 million, or 70 cents per share, a year ago.
Earnings from continuing operations fell to $224.9 million, or 68 cents per share, from $233.7 million, or 72 cents per share, a year earlier.
Results for the latest quarter included about $10 million in restructuring costs and a discrete tax benefit of $13.7 million, or 4 cents per share. Year-earlier results included about $122 million related to Ingersoll-Rand's acquisition of Trane, an air conditioning business.
Revenue dropped to $3.48 billion from $4.31 billion. U.S. revenue slumped 15 percent, while international revenue dropped about 26 percent, led by a decline in Europe. Currency exchange fluctuations slashed revenue by 2 percent.
Analysts surveyed by Thomson Reuters, on average, expected a profit of 61 cents per share on revenue of $3.56 billion. Wall Street estimates generally exclude one-time items.
As a result, the company lowered its fourth-quarter revenue forecast by about $200 million to $3.2 billion. Analysts expect $3.38 billion.
The company expects adjusted earnings of 44 cents to 54 cents per share. Analysts predict 55 cents per share.
For 2009, Ingersoll-Rand said it expects earnings from continuing operations of $1.60 to $1.70 per share on revenue of $13.1 billion to $13.3 billion. Analysts are looking for $1.58 per share on revenue of $13.33 billion.
Shares of Ingersoll-Rand rose 48 cents to $35.83 in morning trading after rising to a 52-week high of $37.19 earlier in the session.
