Ingersoll Rand’s 4Q15 revenues and order book
Ingersoll Rand’s (IR) 4Q15 revenues came in at $3.33 billion, compared to analyst estimates of $3.30 billion. Revenues stood at $3.2 billion in 3Q14. The 3% revenue growth can be attributed to growth in both residential and commercial HVAC (heating, ventilation, and air conditioning). Excluding its foreign exchange impact, the revenues would have grown by 7%.
The company’s order book would have risen by 4% when excluding the foreign exchange effect. Its core organic orders grew by 2%. In the Climate segment, bookings were up by 2% while organic bookings rose by 5%. The Climate segment consists of Residential, Transportation, and Commercial HVAC.
In the Industrial (XLI) segment, bookings were down by 4%. Excluding foreign exchange impact, its order book grew by 1%. But organically, the order book fell by 7%. The Industrial segment consists of Air & Industrial and Club Car.
Ingersoll Rand’s debt and liquidity
As of 4Q15, Ingersoll Rand has $7.2 billion in debt (long-term debt plus short-term debt) against equity of $5.8 billion, implying a debt-to-equity ratio of ~1.22x. The company’s cash stood at $736 million. For 4Q14, the debt-to-equity ratio was 1.25x while its cash stood at $1.7 billion.
Ingersoll Rand’s dividend and buybacks
For fiscal 2015, Ingersoll Rand (IR) has paid around $303 million in dividends to shareholders. With the buyback of IR shares worth $250 million via the repurchase of 4.4 million shares, the company effectively gave back $553 million to shareholders in 2015.