Restructuring costs, taxes cut into Ingersoll Rand profits
04/23/2014 11:13 AM
04/23/2014 11:25 AM
Ingersoll Rand, the Ireland-based industrial technology firm with its North American headquarters in Davidson, reported lower first-quarter earnings Wednesday as it dealt with higher taxes and restructuring expenses.
The company reported earnings of $79 million for the first quarter, down from $88 million in the same quarter of 2013.
The results also included $8.9 million, or 2 cents per share, of restructuring charges. The company late last year spun off its residential and commercial security businesses into a new firm called Allegion.
Also clouding the company’s earnings picture: its effective tax rate rose from 7.5 percent in the first quarter of 2013 to 23.3 percent this quarter. Its provision for income taxes rose from $4.5 million to $24.5 million.
The company, which makes well-known products such as Trane air conditioners, reported higher revenues from commercial and residential air conditioning units as well as for air compressors and industrial products.
Excluding restructuring, the company reported adjusted first-quarter earnings of 29 cents per share, up 32 percent year over year.
“We delivered strong operating performance in the first quarter, achieving adjusted (earnings per share) above the top end of our guidance range,” said CEO Michael Lamach.
Ingersoll Rand, a $14 billion global company, employs nearly 1,400 people at its Davidson offices.
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