Ingersoll-Rand Q2 Profit Plummets On Tax Charge

The company spent $226 million of its Q2 expenses to settle an income tax dispute, while total sales ticked up in the quarter.

Swords, Ireland-based global industrial manufacturer Ingersoll-Rand reported its 2015 second quarter financial earnings on Tuesday, led by total sales of $3.6 billion, a 2 percent year-over-year increase.

The company had a profit of $78.9 million, a 73.3 percent drop from Q2 2014's $310.6 million. The profit tumble was due to the company setting aside $331.4 million to settle an income-tax provision. In all, Ingersoll-Rand used $226.6 million Q2's expenses for the tax dispute.

"We saw relative strength across our Climate Segment, while markets in our Industrial Segment were softer than expected. We saw signs of stabilization in recent weeks and are increasing productivity in the businesses where we see continued market weakness," said Michael W. Lamach, chairman and CEO. “Despite declining industrial markets in the quarter and economic pressure in Asia and Latin America, we continued to grow revenue and delivered EPS at the midpoint of our guidance."

Sales in the U.S. increased 5 percent organically, while international sales decreased 9 percent.

By segment, Ingersoll-Rand's Industrial business – which includes compressed air systems and services, power tools, material handling systems, and fluid management – had total Q2 sales of $785 million, down 1 percent from a year ago. Organic sales decreased 4 percent. The company's Climate/HVAC segment had revenues of $2.82 billion, up 2 percent from last year.



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