What Does Ingersoll Rand Do?



Ingersoll Rand’s geographic reach

According to Ingersoll Rand’s fiscal 4Q15 earnings, total revenue geographically was 66% from the United States, 5% from Latin America, 14% from Asia, and 15% from Europe and the Middle East.

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Order backlog

Ingersoll Rand classifies its order backlog into two categories: equipment and aftermath. For the equipment category, order backlog is approximately 68%, while the remaining 32% is for aftermath.

Core strengths

In HVAC (heating, ventilation, and air conditioning), Ingersoll Rand (IR) claims to have innovative technology and industrial depth. It says it’s unique in terms of identifying the right global trends, the right businesses, the right operating system, and the right people.

IR also says it aims to provide customers with efficient, cost-effective products by redefining its product development process. Some of its strategies include a lean operating system to reduce cycle time and improve quality.

IR expects adjusted continuing EPS (earnings per share) of $3.75–$4 for 2016.

IR is part of the Guggenheim Mid-Cap Core ETF (CZA) and accounts for 2.0% of the total holdings. Investors in this ETF could benefit if IR continues to surpass targets set for 2016. Viacom (VIA) and DTE Energy (DTE) are among the top ten holdings of CZA, accounting for 2.9% and 2.3%, respectively. IR has also been part of the S&P 500 (SPY) for more than five years.


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