Ingersoll-Rand continues to execute transformation strategy

By Lisa Kerner

Charlotte, N.C., May 31 - Ingersoll-Rand Co. Ltd. will report its financial results in three segments - climate control technologies, industrial technologies and security technologies - while the Bobcat, utility equipment and attachments businesses are expected to be reclassified as discontinued operations, according to comments made by chairman, president and chief executive officer Herbert L. Henkel during a presentation at the Sanford C. Bernstein Strategic Decisions Conference in New York on Thursday.

The change in reporting is part of the company's transformation strategy begun in 2000. In support of the strategy, Ingersoll-Rand's board approved the expansion of its share-repurchase authorization, to $4 billion from $2 billion.

"We plan to accelerate the repurchase program to complete $2 billion of share repurchases by the end of the 2007 third quarter," Henkel said. Approximately $330 million in shares had been repurchased as of early May under the original authorization, a company news release stated.

"We have tremendous flexibility in executing our strategies to enhance shareholder value as the result of our strong annual operating cash flow, the prospective proceeds from the sale or spin-off of the Bobcat, utility equipment and attachments businesses, the proceeds of more than $1 billion we received from the recent divestiture of our road development business, and our strong balance sheet. We will continue to execute share repurchases and pursue growth through strategic acquisitions," Henkel said.

Since beginning its transformation process, Ingersoll-Rand has divested heavy-machinery and capital-intensive businesses and completed 65 "bolt-on" acquisitions.

Ingersoll-Rand, based in Hamilton, Bermuda, designs and manufactures climate control, compact vehicle, construction, industrial and security products.

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