Ingersoll-Rand generates cash, will continue focus on deleveraging

By Lisa Kerner

Charlotte, N.C., Feb. 12 - Ingersoll-Rand plc's focus on generating cash flow continues to pay off, said president and chief executive officer Michael Lamach during an earnings call on Friday to discuss fourth-quarter 2009 and full-year results.

"Due to the unprecedented $1.6 billion of available cash generated, we have been able to reduce total financing by over $1 billion while maintaining cash balances of around $900 million," Lamach said.

The cash flow was generated from earnings and from working capital reductions.

"We ended the year with total financing of $4.1 billion which equates to a total reduction of almost $ 1.1 billion for the year - a number that is well above our $675 million deleverage goal that we had set at the beginning of the year for 2009," Lamach said during the call.

Ingersoll-Rand said its cash balances increased by $327 million during the year and its liquidity position improved to $2.25 billion at year-end 2009.

"The need to deleverage the company in the face of very difficult economic conditions has been and will continue to be our top financial priority," Lamach said.

The diversified industrial firm is based in Swords, Ireland, and has its U.S. corporate offices in Piscataway, N.J.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.