Ingersoll-Rand's 2Q profit falls on weaker volumes

NEW YORK (AP) — Diversified manufacturer Ingersoll-Rand PLC said Friday its second-quarter earnings fell 52 percent as weaker volumes, an unfavorable product mix and higher interest expense offset lower raw material costs and greater productivity.

The company, which recently moved its corporate headquarters from Bermuda to Ireland, also raised the lower end of its 2009 revenue forecast and narrowed its projection for full-year earnings.

Net income attributable to common shareholders declined to $122.1 million, or 38 cents, compared with $256.1 million, or 88 cents per share, in the year-earlier period.

Excluding restructuring costs, the company earned 50 cents per share.

Analysts polled by Thomson Reuters expected, on average, earnings per share of 39 cents per share. Such expectations typically exclude one-time items.

Sales rose to $3.47 billion from $3.08 billion, but missed analysts' estimate of $3.51 billion.

Interest expense climbed to $81.9 million from $45.6 million after company took on more debt to buy the Trane air conditioning business.

Last year the company bought Trane for about $9.5 billion, and it has been working to pay down its debt since then. Since the beginning of the year, Ingersoll-Rand has cut its debt by $241 million to about $4.7 billion.

"Our focus on generating cash flow continues to pay off. Working capital reductions are better than targets, primarily driven by significant inventory reductions. We are ahead of plan in reducing our debt and we will be in a position to meet or exceed our $675 million debt pay down target this year," said CEO Herbert Henkel.

In premarket trading, shares rose 4.2 percent, or $1.02, to $25.10.