Ingersoll Rand (NYSE:IR) released a doozy of a statement after hours Tuesday. The maker of refrigeration equipment and other assorted industrial equipment must be feeling the recessionary pinch: the company announced its Q1 sales would drop to $2.9 billion, a 27% drop, and also a substantial drop from earlier guidance of $3.1-3.2 billion. This would translate into a loss per share of around -$0.15. Indicatively, consensus estimates were for $3.13 billion in revenue and (0.01) EPS. The company also provided full year guidance:
For the full year, assuming current business conditions continue, and without any improvement in the economy or any positive impact from economic stimulus packages, revenues and earnings would be adversely affected. Revenues would be in the range of $13.6 billion, down approximately 17% from 2008 on a proforma basis, versus previous guidance of down by 8% to 9%. Earnings per share from continuing operations would be approximately $0.45 below the bottom end of the previous guidance range of $1.85 to $2.25 per share.
In addition to the horrible operating results, the company announced it would raise a benchmark-sized amount of senior notes, $300 million in exchangeable senior notes due 2012 (exchangeable into cash and shares: nothing like adding dilution when you are running your business into the ground), and $200 million in a one year trade receivables financing agreement. The total amount of new financings will be no more than $1 billion, and the proceeds will be used to repay a June 2009 maturing bridge loan, which the company incurred in connection with its June 2008 acquisition of Trane. At least Trane's shareholders are happy: The value of TT when purchased was greater than the entire current enterprise value of Ingersoll Rand. Zero Hedge would make some conclusions about the state of the industrial market, which contrary to recent durable goods order numbers, is apparently not doing that hot, but those conclusions would be far too obvious.