UPDATE 3-Ingersoll results below expectations, shares down

* Q1 adjusted shr $0.16 vs $0.18 expected

* Sees 2010 EPS cont ops $1.88 to $2.23

* Shares down 5.7 pct

NEW YORK, April 23 (BestGrowthStock) – Ingersoll-Rand Plc (IR.N: ), a
maker of heating and cooling technology for homes, businesses
and transportation, posted lower-than-expected results on
Friday and noted continuing weakness in global non-residential
construction markets, sending its shares down 5.7 percent.

The company, whose businesses are geared more toward
late-cycle markets than those of other diversified industrial
companies, gave a full-year forecast that bracketed Wall Street

“We expect challenging U.S. and European non-residential
construction markets to continue for the balance of the year,”
Chief Executive Michael Lamach said in a statement.

Almost half of the company’s revenues come from late-cycle,
non-residential construction, since the company sells security
and heating and cooling products for new buildings.

A JP Morgan ranking of large U.S. industrials finds only
Tyco International Ltd (TYC.N: ), SPX Corp (SPW.N: ) and Emerson
Electric (EMR.N: ) derive a greater portion of sales from
late-cycle markets — ones that require greater capital
investment and typically turn up late in an economic recovery.

For that reason, some analysts said it makes sense to buy
the stock on weakness, ahead of an eventual earnings recovery.
KeyBanc and Wells Fargo analysts repeated their “buy” ratings
on the company.


Ingersoll, which also makes security technology and
industrial products like air compressors, posted break-even net
earnings of $1.4 million, or 0 cents per share, compared with a
loss of $26.7 million, or 8 cents per share a year earlier.

Adjusted earnings were 16 cents per share, above the
company’s earlier forecast, but below analyst estimates of 18
cents per share, according to Thomson Reuters I/B/E/S.

Revenue was up 1 percent to $2.95 billion, compared with
Wall Street forecasts for sales of $3.02 billion. Sales of
commercial heating and cooling equipment were down, even as
service and parts sales were higher.

Ingersoll shares fell 5.7 percent to $36.76 on the New York
Stock Exchange. The drop erased most of the stock’s April
gains, which had been driven by optimism over results in the
industrial sector.

Ingersoll said it sees signs of recovery in residential
demand, in its security and refrigerated transport businesses
and in global industrial markets.

Orders and backlogs rose by double digits. The company said
it expects sales for the full year between $13.6 billion and
$13.8 billion. It forecast earnings from continuing operations
of $1.88 to $2.23 per share, including expenses related to a
new U.S. healthcare law.

Excluding those expenses, Ingersoll’s earnings range
brackets average Wall Street estimates of $2.17 per share.

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(Reporting by Nick Zieminski; Editing by Derek Caney, Dave
Zimmerman and Robert MacMillan)

UPDATE 3-Ingersoll results below expectations, shares down