Ingersoll-Rand Friday posted a 10 percent jump in second-quarter revenue, as sales increased in all business segments and geographical markets compared with 2005.
The company also raised its earnings guidance for the rest of the year. The diversified industrial company said its earnings from operations for the quarter came in at $322 million, or 97 cents a share, above the company's and Wall Street's expectations."We continue to demonstrate strong growth and operational improvement across our global businesses," said Herbert Henkel, chairman, president and chief executive officer. "This progress is the direct result of a successful portfolio transformation, as well as an ongoing transformation of our operating culture."
The company's construction technologies business, which includes Ingersoll Rand road pavers, compactors, portable power products and general-purpose construction equipment, saw revenue increase by 13 percent due to ongoing strength in the markets for road development and utility equipment and the growing attachment business.
The compact vehicle technologies segment, which includes Bobcat compact equipment and Club Car golf cars and utility vehicles, posted a 9 percent increase in revenue. Operating margins improved to 17.4 percent, compared with 16.1 percent in the second quarter of 2005. Bobcat revenue increased by 7 percent compared with last year, due to increased sales of tracked vehicles and mini-excavators in North America and improving compact equipment markets in Europe. Higher parts and attachment shipments also drove revenue gains compared to 2005. Bobcat margins improved, reflecting volume gains and the benefits of pricing actions and productivity initiatives, partially offset by higher material and transportation costs.
Club Car revenue increased by 14 percent, primarily reflecting market share gains in golf cars and higher sales of transport and utility vehicles. Margins also improved compared with last year.Ingersoll's industrial technologies business, focused on providing solutions to enhance customers' industrial and energy efficiency and providing equipment and services for compressed air systems, tools, fluid handling and energy generation systems, saw revenue increase by about 12 percent.
"Activity in most of Ingersoll-Rand's major end markets remained strong during the second quarter," said Henkel. "We had a strong start in the first half of the year and we expect record revenues and earnings for 2006."