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.