Sources from Ingersoll-Rand reported on July 16 that second quarter revenues are anticipated to approximate $3.7 billion, which would be an increase of 7% compared with 2009, and would exceed the company's prior revenue growth forecast range of 3-6%.
"Second quarter activity exceeded expectations in a number of our end markets," says Michael Lamach, chairman, president, and CEO. "We successfully leveraged the higher volumes with productivity improvements to significantly increase our year-over-year operating margins and surpass our prior earnings forecast."
A more comprehensive review of second quarter results and the full year 2010 forecast will be discussed in the company's second quarter earnings release and conference call scheduled for July 23.
Ingersoll-Rand also announced that it plans to divest its European refrigerated display case business, which is sold under the KOXKA brand, and was previously reported as part of the company's Climate Solutions segment.
"This transaction represents another step in the realignment of our product portfolio and manufacturing capacity as we accelerate productivity initiatives in our core businesses," says Lamach. "The KOXKA business has a strong brand and a dedicated workforce, and I want to thank the employees for their contributions during difficult business conditions. At present we are evaluating proposals from a number of purchasers whose primary focus is on developing the full potential of the business for the long term," Lamach says.
According to sources, the divestiture will have no impact on Ingersoll Rand's Hussmann® refrigeration business in any other part of the world. KOXKA operations will continue without disruption and will meet customer requirements for products and high quality service. KOXKA designs, manufactures and markets commercial refrigeration equipment through company-owned sales branches and a network of distributors throughout Europe, Africa and the Middle East.
KOXKA has two manufacturing facilities in Spain and currently employs 445 people. 2010 full year revenues are expected to approximate $80 million. Because of the planned sale, this business will be reported as part of discontinued operations, net of tax, for the second quarter of 2010 and all prior periods. The divestiture is expected to add approximately $0.02 to second quarter 2010 EPS from continuing operations compared with prior guidance and is reflected in the company's updated EPS guidance of $0.74 to $0.76. The divestiture is also expected to result in a loss of approximately $35 million, which will be reflected as an impairment charge to discontinued operations for the second quarter.