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Ingersoll-Rand plc (NYSE:IR), Swords, Ireland, a diversified manufacturer, reported total revenues increased 12 percent to $3.89 billion for the second quarter of 2011 compared with the 2010 second quarter; orders increased by 9 percent.
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U.S. revenues were up 6 percent, and revenues from international operations increased 22 percent (up 13 percent excluding currency), primarily due to strong growth in Asia.
The company reported profit of $92.3 million for the quarter.
“There were many signs of progress in our second-quarter results,” said Michael W. Lamach, president and CEO of Ingersoll Rand. “We benefited from upward momentum in most of our key end markets, which drove a 12 percent revenue increase in the second quarter. We leveraged these gains to improve operating income by 31 percent and to increase our operating margins, earnings and cash flow. Despite these improvements, we had disappointing results in our Residential Solutions segment, where the combination of softening end-market activity and operational execution issues led to a year-over-year decline in both revenues and operating earnings.”
The company reports the results of its businesses in four segments based on industry and market focus. The company’s four segments are Climate Solutions, which includes the Trane commercial HVAC systems and Thermo King businesses; Industrial Technologies, which includes Air and Productivity Solutions and Club Car; Residential Solutions, which includes the residential HVAC and security businesses; and Security Technologies, which includes the commercial security businesses.
Climate Solutions revenues for the second quarter of 2011 were $2.04 billion and increased 14 percent (up 10 percent excluding currency) compared with the second quarter of 2010. Bookings increased 12 percent year-over-year with double-digit gains in the HVAC and transport businesses.
On a year-over-year basis, total commercial HVAC revenues increased 12 percent, with a 15 percent increase in equipment and systems revenues and an 8 percent increase in parts, services and solutions. Commercial revenues increased in all major geographic regions, with strong year-over-year improvements in the Americas and Asia. Equipment revenue in North America was up 15 percent as markets continued to recover after reaching a cyclical bottom in the second half of 2010. Second-quarter bookings were up 10 percent compared with the 2010 second quarter, with especially strong results in Europe.
Total Thermo King refrigerated transport revenues increased 24 percent in the second quarter compared with last year, with significant growth in both the Americas and Europe. Total worldwide refrigerated trailer and truck revenues increased approximately 30 percent compared with last year, reflecting improved activity in both the U.S. and overseas markets. Seagoing container revenues, auxiliary power units and worldwide aftermarket revenues also increased significantly due to improving end-market activity.
Industrial Technologies provides products, services and solutions to enhance customers’ productivity, energy efficiency and operations. Products include compressed air systems, tools, fluid power products, and golf and utility vehicles. Total revenues in the second quarter of $772 million increased approximately 24 percent (up 20 percent excluding currency) compared with the second quarter of 2010. Air and Productivity revenues increased 27 percent, with volume increases in all major geographic regions. Revenues in the Americas increased 20 percent compared with 2010, as industrial and commercial markets for both air compressors and tools continued to improve. Air and Productivity Solutions revenues outside the Americas increased approximately 33 percent compared with 2010 from strong activity in Asia. Bookings increased 17 percent year-over-year with substantial gains in all geographic regions.
Club Car revenues increased 13 percent compared with the second quarter of 2010 from increased sales of golf cars and utility vehicles and improved aftermarket activity. Bookings declined slightly for the quarter.
Residential Solutions second-quarter revenues were $632 million, a decrease of 1 percent (down 2 percent excluding currency) compared with 2010. Bookings declined 6 percent year-over-year.
Total reported residential security revenues decreased 1 percent compared with 2010 as a result of stagnant remodeling and new builder markets, and ongoing inventory management actions by “big box” customers in the United States.
Residential HVAC revenues declined 1 percent compared with 2010 due to weak replacement demand and soft new housing construction.
Security Technologies revenues of $441 million improved by approximately 5 percent (up 1 percent excluding currency) compared with the second quarter of 2010. Second-quarter results reflect the bottoming of building activity in the U.S. and in Europe. Revenues in the Americas were up 1 percent from price improvements on flat volumes. Overall segment bookings were up 14 percent, with mid-single digit gains in the Americas and strong improvements in Asia.