Ingersoll-Rand Earnings Rise

Tue October 22, 2002 - National Edition

Ingersoll-Rand recently announced that its quarterly profits more than doubled on cost-cutting as well as stronger sales of its Bobcat construction vehicles and security products.

The company reported third-quarter net income of $89.3 million, or 53 cents a share, up from $33.9 million, or 20 cents a share, in the same period a year ago.

Ingersoll-Rand’s results came as it winds down a restructuring that has closed 28 plants and trimmed 6,750 employees. Those moves in the most recent period resulted in a pretax charge of $24.1 million, or 8 cents a share, compared with $63.2 million, or 25 cents, a year ago.

Before restructuring charges in both years, Ingersoll-Rand posted a third-quarter profit of $104.5 million, or 61 cents a share, up about 37 percent from $76.3 million, or 45 cents, a year ago.

The company had lowered analysts’ estimates in July, predicting it would earn 55 cents to 60 cents a share in the quarter before items.

The company said its month-to-month order pattern remained choppy, with September orders coming in weak after the quarter got off to a good start.

Ingersoll-Rand shares rose as much as 9.5 percent initially and were up $2.84, or 8.4 percent, at $36.78 on the New York Stock Exchange.