Ingersoll-Rand Company is considering selling its Bobcat construction unit as well as other construction related units, saying the businesses "no longer fit" its long-term strategic outlook. A spinoff is also a possibility, the company said, and a decision is expected in the second half. The businesses in question accounted for combined revenue of $2.6 billion last fiscal year, out of total revenue at Ingersoll-Rand of $11.4 billion. The construction units have been suffering as a result of the housing slowdown; Wednesday, Bobcat competitor Deere & Co. reported earnings fell 16% in the first quarter on the continuing housing slump. Ingersoll-Rand shares gained $2.68, or 5.75%, to $49.29 on heavy volume of nearly 12 million shares.
Sources: Wall Street Journal, Bloomberg, TheStreet.com, Reuters
Commentary: Ingersoll-Rand's Numbers on Weak Housing Market, Hit Estimates • JANA Partners Discloses Stake in Alcoa, Ingersoll-Rand • Warren Buffett: Buys, Sells, Portfolio
Stocks/ETFs to watch: Ingersoll-Rand Company (NYSE:IR). Competitors: Caterpillar Inc. (NYSE:CAT), Deere & Company (NYSE:DE)
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