After completing the acquisition of Trane Incorporated (Piscataway, N.J.) in June 2008 for approximately $10 billion, Ingersoll-Rand Company Limited (Hamilton, Bermuda) is evaluating Trane's integration into the company. Ingersoll-Rand is now focusing on achieving the results that it has committed to, Herbert L. Henkel, chairman, president and CEO of Ingersoll-rand, said at the Global Industrials CEOs Unplugged Conference in Dana Point, Calif.
"We believe that there are significant upside opportunities by adding Trane to Ingersoll-Rand," he said. "We believe that we as a company have strengthened our position as a diversified company."
Ingersoll-Rand reported second-quarter 2008 revenues of $3.08 billion, up 38 percent compared with $2.22 billion in the same period last year. The second-quarter 2008 revenues include $698 million of revenues from Trane, which is now reported as Air Conditioning Systems and Services (ACSS), the company stated in a news release.
"The combination of Ingersoll-Rand and Trane creates a global, diversified industrial company with pro forma 2008 revenues of approximately $17 billion," Henkel stated. "The new Ingersoll-Rand portfolio will include $11 billion of businesses which will offer high-value equipment, systems and services necessary for delivering solutions across the temperature spectrum for indoor, stationary, and transport applications worldwide."
For the next 18 to 24 months, the company will focus on the execution of existing portfolios, Henkel said. He said Ingersoll-Rand will continue to evaluate small business units to see whether or not they should continue to be included, while also evaluating possible acquisition opportunities. Henkel said the company is also taking steps to keep up with competitors, such as Atlas Copco (Stockholm, Sweden). For example, in its air division, Ingersoll-Rand plans to expand its product mix to gain a larger market share oil-free air compressors. It is also working on its manufacturing footprint to keep from being too scattered.
Looking ahead, third-quarter 2008 results are expected to be 2 percent to 4 percent higher from $4.4 billion to $4.5 billion, the company stated. For the full year, Ingersoll-Rand expects revenue growth between 4 percent and 5 percent, excluding ACSS. For more details about the Trane acquisition, see December 19, 2007, news article - Ingersoll-Rand Sells One Division, Acquires Another.
Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services. To learn more, visit www.industrialinfo.com.