Ingersoll Rand tools see ‘positive growth’ while revenues rise

Revenues rose 2%, with organic revenue up 3%, in Q3 2016 for Ingersoll Rand.

The industrial segment of Ingersoll Rand’s business, including power tools, saw net revenue virtually flat at $730 million ($729 million in Q3 2015). Tools were singled out for “positive growth”. The group said that challenging end market conditions continued in the industrial segment, with organic revenue declining in single digits in the Americas – offset by international gains in Asia and EMEA.

“Our third-quarter results demonstrate our consistently strong operating performance with top- quartile organic growth, EPS growth and cash flow as a percentage of net income relative to our multi-industry peer group, driving long-term value for our shareholders,” said Michael W. Lamach, chairman and chief executive officer.

“The business operating system that underpins our execution drives innovation, productivity, energy efficiency and sustainability while supporting world-class employee engagement, all of which builds a continuing culture of winning the right way.”

Operating margin was up half a % point while adjusted operating margin rose 30 basis points, with margin improving due to price, volume, productivity and material deflation which was partially offset by business investment, mix, foreign exchange and inflation.

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