Ingersoll Rand reported its 2020 first quarter financial results on Tuesday, the first such report for the company since it was revamped through the merger of Gardner Denver with Ingersoll-Rand's Industrial business, completed Feb. 29. That acquisition relocated Ingersoll Rand's headquarters from Swords, Ireland to Davidson, NC, while the remainder of the former Ingersoll-Rand formed a pure-play climate company, Trane Technologies.
Ingersoll Rand — which has brands across product categories of compressors, lifting & material handling, power tools, blowers & vacuum pumps, fluid handling and more — reported total Q1 sales of $800 million, which were up 29 percent year-over-year. That major gain was primarily due to the Gardner Denver acquisition of Ingersoll-Rand's Industrial segment, as adjusted sales of $1.3 billion were down 15 percent.
The company took a net loss of $37 million in Q1, compared to a $47 million profit a year earlier.
By business segment in Q1:
- Industrial Technologies and Services revenue of $504 million were up 24 percent year-over-year, again, primarily due to the Gardner Denver transaction. Adjusted revenue of $796 were down 19 percent. The segment includes broad range of compressor, vacuum and blower solutions as well as fluid transfer equipment, loading systems, power tools and lifting equipment.
- Precision and Science Technologies revenues of $113 million were up 42 percent, driven by the transaction. Adjusted revenue of $192 million were down 10 percent. The segment includes highly specialized gas, fluid management systems, liquid and precision syringe pumps and compressors.
- High Pressure Solutions revenue of $96 million were down 29 percent. The segment includes a diverse range of positive displacement pumps, integrated systems, consumables and associated aftermarket parts and services largely for use in the upstream oil and gas market.
- Specialty Vehicles Technologies revenue were $87 million. The segment includes Club Car golf, utility and consumer low-speed vehicles.
Responding to COVID19 pandemic business impacts, Ingersoll Rand has enacted cost-savings measures that include:
- Reduced compensation for executive management, senior leaders and Board•
- Total company merit deferral
- Furloughs and reduced work schedules
- Discretionary spend reductions (travel, contractors, prof services, etc.)
- Governmental incentives
These measures are expected to deliver $40 million to $50 million of cost savings in the company's fiscal 2020.