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Diversified manufacturing company $IR said it has completed the acquisition of CALMAC Corporation, which provides thermal energy storage solutions. The acquisition is consistent with Ingersoll's strategy to help customers solve climate and industrial challenges. The company did not disclose the financial terms of the deal.
$IR has signed an agreement to acquire GPSi Holdings, a provider of cloud-based technologies, from Falconhead Capital, in an effort to strengthen its telematics portfolio. The company did not disclose the financial terms of the transaction.
$IR said Didier Teirlinck, EVP, Climate segment, and Robert Zafari, EVP, Industrial segment, will assume interim roles as advisors to the CEO on growth plans and strategic initiatives until their retirements in 2018. Zafari also will lead the Fluid Management, Material Handling and Power Tools businesses until a successor is named.
$IR appointed David Regnery as EVP, Ingersoll Rand, effective Sept. 5, 2017. The company named Donald Simmons to succeed Regnery as president of its commercial heating, ventilation and air conditioning (HVAC) business in North America and Europe, the Middle East and Africa (EMEA).
Shareholders of $IR at the latest AGM considered the proposal to nominate to re-elect 10 members of Ingersoll's board of directors. The shareholders also considered the proposals for appointment of independent auditors and authorization of the Audit Committee to set the auditors' remuneration.
$IR sees FY17 revenues to improve 2% and organic revenues to move up 3%, with a continuing EPS of $4.20-4.30. GAAP effective tax rate is estimated at 21-22%. Capex is touted to be $250MM, with cash flow from operating activities of $1.4-1.5Bil.
In 1Q17, total bookings for $IR went up 6% to $3.4Bil. Operating income shed 5% to $215MM, on a 0.6 percentage point drop in operating margin of 7.2%. Organic revenue growth in North American operations was up 6% and in international operations was up 2%.
$IR posted a 23% slump in 1Q17 attributable net income of $117.1MM from $152.4MM a year ago, offset by restructuring charges of $32.7MM or $0.10 per share. Diluted earnings dropped 22% to $0.45 per share, on a 3.7% net revenue bump to $3.0Bil.
$IR plans to buy the business of Thermocold Costruzioni S.r.l, a privately held Italian company that manufactures and distributes heating, ventilating and air-conditioning (HVAC) systems and solutions for residential, commercial and industrial buildings in Europe.
$IR BoD authorized a new share repurchase program of up to $1.5Bil of the company’s ordinary shares to commence upon the completion of the company’s current $1.5Bil program. Timing of the repurchase program depends on the available liquidity and cash flow, and general market conditions.
For 2017, $IR expects corporate, general and administrative expenses to be approx. $240MM and capital expenditures are expected to be approx. $250MM. The company targets $1.5Bil between a combination of share buyback and acquisition. If there is a reduction in the U.S. corporate tax rate, $IR expects to benefit from it.
$IR said that 4Q16 EPS was hurt by discrete items in G&A, negative other operating income and taxes. Corporate costs were higher than expected, primarily due to stock-based and other incentive-based compensation and increased IT, infrastructure and security expenditures. $IR incurred higher-than-expected non-operating costs due to FX losses.