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What Were Ingersoll Rand’s Key Highlights for 4Q15?

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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.

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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.

Ingersoll Rand’s peers

Some of the players in the heating, ventilation, and air conditioning space are Honeywell (HON), ABB Ltd. (ABB), Atlas Copco, and Lennox International (LII). IR is a part of the SPDR S&P 500 Trust ETF (SPY).

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