Industrial conglomerate Ingersoll-Rand said Friday its second-quarter net income more than tripled on strong international sales and the proceeds of the sale of its Road Development unit to Volvo. Net income was $964.1 million ($3.17/share), up from $313.5 million ($0.95) a year ago. Net of the sale, Q2 EPS were flat at $0.95/share on revenue of $2.22 billion, while net income fell 8.0% to $288M. Analysts had expected $0.95 on $2.76 billion in revenue. IR forecasted third-quarter earnings excluding items of $0.85-0.90/share. Ingersoll breaks down its earnings into three segments: Climate Control Technologies (including Thermo King and Hussmann) posted a 6% revenue gain; Industrial Technologies (Club Car golf carts) revenues were up 12%; and Security Technologies gained 8%. The company is looking to sell its Bobcat machinery unit. "We again offset several soft domestic markets with strong revenue growth from international operations, new product offerings and recurring revenues," CEO Herbert Henkel said. IR forecasts full-year sales of $11.9-12 billion; analysts had been estimating only $11.3 billion. Shares are up 29.5% YTD despite losing 7.5% during the recent marketwide selloff. In pre-market trading, shares are down another 1.3%.
Sources: Press release, Reuters, Bloomberg, MarketWatch
Commentary: JANA Partners Discloses Stake in Alcoa, Ingersoll-Rand • Ingersoll-Rand Trying To Recover From Housing Slowdown
Stocks/ETFs to watch: IR. Competitors: EMR, JCI, TEX
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