Ingersoll-Rand Falls On Adjusted Earnings Forecast

Ingersoll-Rand PLC (NYSE:IR) announced an unexpected slowdown in its business that most likely will affect earnings in the company’s third quarter. IR lowered their forecast earnings from $.85-.90 per share to $.77-.80 per share. This decrease is a far cry from the $.91 per share some analyst were expecting when IR reports its earnings on October 21.

Ingersoll-Rand has seen a slowdown in consumer related business from areas including; residential heating, ventilation and air condition (HVAC), and golf and residential security. The slow down in business has led IR to issue this most recent statement about them downgrading their expected earnings. In early hours trading Ingersoll-Rand is trading down nearly 8.5% to $29.26 per share. As expected this kind of announcement will bring share prices down.

Earlier this month, the market suggested that U.S. manufacturing multinationals may be poised to cut earnings estimates for next year, as slowing economies and uncertainty over Europe’s debt problems raise more questions about demand for high-value capital goods.

Ingersoll, which makes cooling systems, air compressors and security technology including Schlage locks, forecast full-year earnings from continuing operations of $2.70-$2.80 a share, on revenue of $14.85-$15 billion.

written by Danny Fisher

Danny is the old hat at Active Investor. One of the been around the block a few times traders, his main focus is on overall market conditions. Be it some new merger talk or Washington being Washington, you can expect Danny will be on top of it.

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