EXHIBIT 99.1
INGERSOLL-RAND COMPANY LIMITED | ||||||||||
Consolidated Income Statement | ||||||||||
Third Quarter and Nine Months | ||||||||||
(In millions except per share amounts) | ||||||||||
UNAUDITED | ||||||||||
Three Months | Nine Months | |||||||||
Ended September 30, | Ended September 30, | |||||||||
2002 | 2001 | 2002 | 2001 | |||||||
Revenues | $ 2,518.1 | $ 2,374.9 | $ 7,411.4 | $ 7,125.5 | ||||||
Cost of goods sold | 1,951.5 | 1,865.0 | 5,720.6 | 5,585.6 | ||||||
Selling & administrative expenses | 387.5 | 368.8 | 1,114.6 | 1,066.3 | ||||||
Restructuring charges | 10.7 | 25.6 | 29.8 | 57.2 | ||||||
Operating income | 168.4 | 115.5 | 546.4 | 416.4 | ||||||
Interest expense | (59.1) | (66.1) | (178.1) | (191.7) | ||||||
Other income/(expense) | (0.1) | (18.1) | (28.8) | (26.8) | ||||||
Earnings before taxes | 109.2 | 31.3 | 339.5 | 197.9 | ||||||
Provision for taxes | 19.9 | (2.6) | 61.9 | 51.8 | ||||||
Net earnings before cumulative effect | ||||||||||
of change in accounting principle | 89.3 | 33.9 | 277.6 | 146.1 | ||||||
Cumulative effect of change in | ||||||||||
accounting principle, net of tax | - | - | (634.5) | - | ||||||
Net earnings/(loss) | $ 89.3 | $ 33.9 | $ (356.9) | $ 146.1 | ||||||
Basic earnings per share | ||||||||||
Net earnings before cumulative effect | ||||||||||
of change in accounting principle | $ 0.53 | $ 0.20 | $ 1.64 | $ 0.89 | ||||||
Cumulative effect of change in | ||||||||||
accounting principle, net of tax | - | - | (3.76) | - | ||||||
$ 0.53 | $ 0.20 | $ (2.12) | $ 0.89 | |||||||
Diluted earnings per share | ||||||||||
Net earnings before cumulative effect | ||||||||||
of change in accounting principle | $ 0.53 | $ 0.20 | $ 1.63 | $ 0.88 | ||||||
Cumulative effect of change in | ||||||||||
accounting principle, net of tax | - | - | (3.72) | - | ||||||
$ 0.53 | $ 0.20 | $ (2.09) | $ 0.88 | |||||||
Average number of common | ||||||||||
shares outstanding: | ||||||||||
Basic | 169.2 | 168.3 | 168.8 | 164.3 | ||||||
Diluted | 169.9 | 169.2 | 170.3 | 165.5 | ||||||
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION | 1 |
INGERSOLL-RAND COMPANY LIMITED | |||||||||||
Business Review | |||||||||||
Third Quarter and Nine Months | |||||||||||
(In millions except percentages) | |||||||||||
UNAUDITED | |||||||||||
Three Months | Nine Months | ||||||||||
Ended September 30, | Ended September 30, | ||||||||||
2002 | 2001 | 2002 | 2001 | ||||||||
Climate Control | |||||||||||
Revenues | $ 639.5 | $ 652.4 | $ 1,769.2 | $ 1,771.2 | |||||||
Operating income | 41.5 | 24.4 | 102.0 | 25.5 | |||||||
and as a % of revenues | 6.5% | 3.7% | 5.8% | 1.4% | |||||||
Industrial Solutions | |||||||||||
Air & Productivity Solutions | |||||||||||
Revenues | 328.3 | 320.8 | 961.5 | 986.0 | |||||||
Operating income | 12.0 | 2.7 | 51.5 | 52.2 | |||||||
and as a % of revenues | 3.7% | 0.8% | 5.4% | 5.3% | |||||||
Dresser Rand | |||||||||||
Revenues | 230.5 | 208.3 | 677.0 | 571.1 | |||||||
Operating income/(loss) | 9.1 | 3.5 | 8.9 | (9.4) | |||||||
and as a % of revenues | 3.9% | 1.7% | 1.3% | -1.6% | |||||||
Engineered Solutions | |||||||||||
Revenues | 294.7 | 254.4 | 904.7 | 796.7 | |||||||
Operating income | 9.4 | 13.2 | 46.4 | 48.9 | |||||||
and as a % of revenues | 3.2% | 5.2% | 5.1% | 6.1% | |||||||
Industrial Solutions | |||||||||||
Revenues | 853.5 | 783.5 | 2,543.2 | 2,353.8 | |||||||
Operating income | 30.5 | 19.4 | 106.8 | 91.7 | |||||||
and as a % of revenues | 3.6% | 2.5% | 4.2% | 3.9% | |||||||
Infrastructure | |||||||||||
Revenues | 623.9 | 578.5 | 1,988.3 | 1,959.6 | |||||||
Operating income | 44.7 | 34.5 | 197.1 | 190.3 | |||||||
and as a % of revenues | 7.2% | 6.0% | 9.9% | 9.7% | |||||||
Security & Safety | |||||||||||
Revenues | 401.2 | 360.5 | 1,110.7 | 1,040.9 | |||||||
Operating income | 70.3 | 61.2 | 200.7 | 171.8 | |||||||
and as a % of revenues | 17.5% | 17.0% | 18.1% | 16.5% | |||||||
Total | |||||||||||
Revenues | $ 2,518.1 | $ 2,374.9 | $ 7,411.4 | $ 7,125.5 | |||||||
Operating income | 187.0 | 139.5 | 606.6 | 479.3 | |||||||
and as a % of revenues | 7.4% | 5.9% | 8.2% | 6.7% | |||||||
Unallocated corporate expense | (18.6) | (24.0) | (60.2) | (62.9) | |||||||
Consolidated operating income | $ 168.4 | $ 115.5 | $ 546.4 | $ 416.4 | |||||||
and as a % of revenues | 6.7% | 4.9% | 7.4% | 5.8% | |||||||
| |||||||||||
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION | 2 |
INGERSOLL-RAND COMPANY LIMITED | ||||||||||||||
Consolidated Income Reconciliation | ||||||||||||||
Third Quarter | ||||||||||||||
(In millions except per share amounts) | ||||||||||||||
UNAUDITED | ||||||||||||||
2002 | 2001 | |||||||||||||
Restructure | Restructure | |||||||||||||
Reported | and Other | Adjusted | Reported | and Other | Adjusted | |||||||||
Results | Charges | Results | Results | Charges | Results | |||||||||
Revenues | $ 2,518.1 | $ - | $ 2,518.1 | $ 2,374.9 | $ - | $ 2,374.9 | ||||||||
Cost of goods sold | 1,951.5 | 9.1 | 1,942.4 | 1,865.0 | 24.4 | 1,840.6 | ||||||||
Selling & administrative expenses | 387.5 | 1.6 | 385.9 | 368.8 | 13.2 | 355.6 | ||||||||
Restructuring charges | 10.7 | 10.7 | - | 25.6 | 25.6 | - | ||||||||
Operating income | 168.4 | (21.4) | 189.8 | 115.5 | (63.2) | 178.7 | ||||||||
Interest expense | (59.1) | - | (59.1) | (66.1) | - | (66.1) | ||||||||
Other income/(expense) | (0.1) | - | (0.1) | (18.1) | - | (18.1) | ||||||||
Earnings before taxes | 109.2 | (21.4) | 130.6 | 31.3 | (63.2) | 94.5 | ||||||||
Provision for taxes | 19.9 | (6.2) | 26.1 | (2.6) | (20.8) | 18.2 | ||||||||
Net earnings before cumulative effect | ||||||||||||||
of change in accounting principle | $ 89.3 | $ (15.2) | $ 104.5 | $ 33.9 | $ (42.4) | $ 76.3 | ||||||||
Earnings per share: | ||||||||||||||
- Basic | $ 0.53 | $ 0.62 | $ 0.20 | $ 0.45 | ||||||||||
- Diluted | $ 0.53 | $ 0.61 | $ 0.20 | $ 0.45 | ||||||||||
Average number of common | ||||||||||||||
shares outstanding: | ||||||||||||||
Basic | 169.2 | 169.2 | 168.3 | 168.3 | ||||||||||
Diluted | 169.9 | 169.9 | 169.2 | 169.2 | ||||||||||
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION | 3 |
INGERSOLL-RAND COMPANY LIMITED | ||||||||||||||||
Business Review Reconciliation | ||||||||||||||||
Third Quarter | ||||||||||||||||
(In millions except percentages) | ||||||||||||||||
UNAUDITED | ||||||||||||||||
2002 | 2001 | |||||||||||||||
Restructure | Restructure | Excluding | ||||||||||||||
Reported | & Other | Adjusted | Reported | & Other | Adjusted | Goodwill | ||||||||||
Results | Charges | Results | Results | Charges | Results | Amortization * | ||||||||||
Climate Control | ||||||||||||||||
Revenues | $ 639.5 | $ - | $ 639.5 | $ 652.4 | $ - | $ 652.4 | $ 652.4 | |||||||||
Operating income | 41.5 | 0.1 | 41.4 | 24.4 | (14.7) | 39.1 | 61.1 | |||||||||
and as a % of revenues | 6.5% | 6.5% | 3.7% | 6.0% | 9.4% | |||||||||||
Industrial Solutions | ||||||||||||||||
Air & Productivity Solutions | ||||||||||||||||
Revenues | 328.3 | - | 328.3 | 320.8 | - | 320.8 | 320.8 | |||||||||
Operating income | 12.0 | (7.9) | 19.9 | 2.7 | (17.4) | 20.1 | 20.9 | |||||||||
and as a % of revenues | 3.7% | 6.1% | 0.8% | 6.3% | 6.5% | |||||||||||
Dresser Rand | ||||||||||||||||
Revenues | 230.5 | - | 230.5 | 208.3 | - | 208.3 | 208.3 | |||||||||
Operating income | 9.1 | - | 9.1 | 3.5 | (0.7) | 4.2 | 6.5 | |||||||||
and as a % of revenues | 3.9% | 3.9% | 1.7% | 2.0% | 3.1% | |||||||||||
Engineered Solutions | ||||||||||||||||
Revenues | 294.7 | - | 294.7 | 254.4 | - | 254.4 | 254.4 | |||||||||
Operating income | 9.4 | (7.3) | 16.7 | 13.2 | (7.2) | 20.4 | 20.4 | |||||||||
and as a % of revenues | 3.2% | 5.7% | 5.2% | 8.0% | 8.0% | |||||||||||
Industrial Solutions | ||||||||||||||||
Revenues | 853.5 | - | 853.5 | 783.5 | - | 783.5 | 783.5 | |||||||||
Operating income | 30.5 | (15.2) | 45.7 | 19.4 | (25.3) | 44.7 | 47.8 | |||||||||
and as a % of revenues | 3.6% | 5.4% | 2.5% | 5.7% | 6.1% | |||||||||||
Infrastructure | ||||||||||||||||
Revenues | 623.9 | - | 623.9 | 578.5 | - | 578.5 | 578.5 | |||||||||
Operating income | 44.7 | (2.1) | 46.8 | 34.5 | (4.8) | 39.3 | 46.0 | |||||||||
and as a % of revenues | 7.2% | 7.5% | 6.0% | 6.8% | 8.0% | |||||||||||
Security & Safety | ||||||||||||||||
Revenues | 401.2 | - | 401.2 | 360.5 | - | 360.5 | 360.5 | |||||||||
Operating income | 70.3 | (5.1) | 75.4 | 61.2 | (11.4) | 72.6 | 76.1 | |||||||||
and as a % of revenues | 17.5% | 18.8% | 17.0% | 20.1% | 21.1% | |||||||||||
Total | ||||||||||||||||
Revenues | $ 2,518.1 | $ - | $ 2,518.1 | $ 2,374.9 | $ - | $ 2,374.9 | $ 2,374.9 | |||||||||
Operating income | 187.0 | (22.3) | 209.3 | 139.5 | (56.2) | 195.7 | 231.0 | |||||||||
and as a % of revenues | 7.4% | 8.3% | 5.9% | 8.2% | 9.7% | |||||||||||
Unallocated corporate expense | (18.6) | 0.9 | (19.5) | (24.0) | (7.0) | (17.0) | (16.9) | |||||||||
Consolidated operating income | $ 168.4 | $ (21.4) | $ 189.8 | $ 115.5 | $ (63.2) | $ 178.7 | $ 214.1 | |||||||||
and as a % of revenues | 6.7% | 7.5% | 4.9% | 7.5% | 9.0% | |||||||||||
* Presented for comparable purposes stating 2001 results excluding goodwill amortization, as if FAS 142 had been adopted in 2001. | ||||||||||||||||
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION | 4 | |||||||||||||||
INGERSOLL-RAND COMPANY LIMITED | ||||||||||||||
Consolidated Income Reconciliation | ||||||||||||||
Nine Months Ended September 30, | ||||||||||||||
(In millions except per share amounts) | ||||||||||||||
UNAUDITED | ||||||||||||||
2002 | 2001 | |||||||||||||
Restructure | Restructure | |||||||||||||
Reported | and Other | Adjusted | Reported | and Other | Adjusted | |||||||||
Results | Charges | Results | Results | Charges | Results | |||||||||
Revenues | $ 7,411.4 | $ - | $ 7,411.4 | $ 7,125.5 | $ - | $ 7,125.5 | ||||||||
Cost of goods sold | 5,720.6 | 31.3 | 5,689.3 | 5,585.6 | 65.8 | 5,519.8 | ||||||||
Selling & administrative expenses | 1,114.6 | 6.1 | 1,108.5 | 1,066.3 | 31.1 | 1,035.2 | ||||||||
Restructuring charges | 29.8 | 29.8 | - | 57.2 | 57.2 | - | ||||||||
Operating income | 546.4 | (67.2) | 613.6 | 416.4 | (154.1) | 570.5 | ||||||||
Interest expense | (178.1) | - | (178.1) | (191.7) | - | (191.7) | ||||||||
Other income/(expense) | (28.8) | - | (28.8) | (26.8) | - | (26.8) | ||||||||
Earnings before taxes | 339.5 | (67.2) | 406.7 | 197.9 | (154.1) | 352.0 | ||||||||
Provision for taxes | 61.9 | (19.4) | 81.3 | 51.8 | (51.0) | 102.8 | ||||||||
Net earnings before cumulative effect | ||||||||||||||
of change in accounting principle | $ 277.6 | $ (47.8) | $ 325.4 | $ 146.1 | $ (103.1) | $ 249.2 | ||||||||
Earnings per share: | ||||||||||||||
- Basic | $ 1.64 | $ 1.93 | $ 0.89 | $ 1.52 | ||||||||||
- Diluted | $ 1.63 | $ 1.91 | $ 0.88 | $ 1.51 | ||||||||||
Average number of common | ||||||||||||||
shares outstanding: | ||||||||||||||
Basic | 168.8 | 168.8 | 164.3 | 164.3 | ||||||||||
Diluted | 170.3 | 170.3 | 165.5 | 165.5 | ||||||||||
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION | 5 |
INGERSOLL-RAND COMPANY LIMITED | ||||||||||||||||
Business Review Reconciliation | ||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||
(In millions except percentages) | ||||||||||||||||
UNAUDITED | ||||||||||||||||
2002 | 2001 | |||||||||||||||
Restructure | Restructure | Excluding | ||||||||||||||
Reported | & Other | Adjusted | Reported | & Other | Adjusted | Goodwill | ||||||||||
Results | Charges | Results | Results | Charges | Results | Amortization * | ||||||||||
Climate Control | ||||||||||||||||
Revenues | $ 1,769.2 | $ - | $ 1,769.2 | $ 1,771.2 | $ - | $ 1,771.2 | $ 1,771.2 | |||||||||
Operating income | 102.0 | (9.9) | 111.9 | 25.5 | (41.7) | 67.2 | 131.7 | |||||||||
and as a % of revenues | 5.8% | 6.3% | 1.4% | 3.8% | 7.4% | |||||||||||
Industrial Solutions | ||||||||||||||||
Air & Productivity Solutions | ||||||||||||||||
Revenues | 961.5 | - | 961.5 | 986.0 | - | 986.0 | 986.0 | |||||||||
Operating income | 51.5 | (9.7) | 61.2 | 52.2 | (28.4) | 80.6 | 82.7 | |||||||||
and as a % of revenues | 5.4% | 6.4% | 5.3% | 8.2% | 8.4% | |||||||||||
Dresser Rand | ||||||||||||||||
Revenues | 677.0 | - | 677.0 | 571.1 | - | 571.1 | 571.1 | |||||||||
Operating income/(loss) | 8.9 | (1.5) | 10.4 | (9.4) | (8.1) | (1.3) | 5.3 | |||||||||
and as a % of revenues | 1.3% | 1.5% | -1.6% | -0.2% | 0.9% | |||||||||||
Engineered Solutions | ||||||||||||||||
Revenues | 904.7 | - | 904.7 | 796.7 | - | 796.7 | 796.7 | |||||||||
Operating income | 46.4 | (17.4) | 63.8 | 48.9 | (22.9) | 71.8 | 71.8 | |||||||||
and as a % of revenues | 5.1% | 7.1% | 6.1% | 9.0% | 9.0% | |||||||||||
Industrial Solutions | ||||||||||||||||
Revenues | 2,543.2 | - | 2,543.2 | 2,353.8 | - | 2,353.8 | 2,353.8 | |||||||||
Operating income | 106.8 | (28.6) | 135.4 | 91.7 | (59.4) | 151.1 | 159.8 | |||||||||
and as a % of revenues | 4.2% | 5.3% | 3.9% | 6.4% | 6.8% | |||||||||||
Infrastructure | ||||||||||||||||
Revenues | 1,988.3 | - | 1,988.3 | 1,959.6 | - | 1,959.6 | 1,959.6 | |||||||||
Operating income | 197.1 | (11.9) | 209.0 | 190.3 | (15.8) | 206.1 | 225.9 | |||||||||
and as a % of revenues | 9.9% | 10.5% | 9.7% | 10.5% | 11.5% | |||||||||||
Security & Safety | ||||||||||||||||
Revenues | 1,110.7 | - | 1,110.7 | 1,040.9 | - | 1,040.9 | 1,040.9 | |||||||||
Operating income | 200.7 | (9.6) | 210.3 | 171.8 | (24.6) | 196.4 | 207.1 | |||||||||
and as a % of revenues | 18.1% | 18.9% | 16.5% | 18.9% | 19.9% | |||||||||||
Total | ||||||||||||||||
Revenues | $ 7,411.4 | $ - | $ 7,411.4 | $ 7,125.5 | $ - | $ 7,125.5 | $ 7,125.5 | |||||||||
Operating income | 606.6 | (60.0) | 666.6 | 479.3 | (141.5) | 620.8 | 724.5 | |||||||||
and as a % of revenues | 8.2% | 9.0% | 6.7% | 8.7% | 10.2% | |||||||||||
Unallocated corporate expense | (60.2) | (7.2) | (53.0) | (62.9) | (12.6) | (50.3) | (50.2) | |||||||||
Consolidated operating income | $ 546.4 | $ (67.2) | $ 613.6 | $ 416.4 | $ (154.1) | $ 570.5 | $ 674.3 | |||||||||
and as a % of revenues | 7.4% | 8.3% | 5.8% | 8.0% | 9.5% | |||||||||||
* Presented for comparable purposes stating 2001 results excluding goodwill amortization, as if FAS 142 had been adopted in 2001. | ||||||||||||||||
SEE ATTACHED FILE FOR ADDITIONAL INFORMATION | 6 |
INGERSOLL-RAND COMPANY LIMITED | |||||||||
Condensed Consolidated Balance Sheet | |||||||||
(In millions) | |||||||||
UNAUDITED | |||||||||
September | December | ||||||||
30, 2002 | 31, 2001 | ||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash, cash equivalents and marketable securities | $ 114.3 | $ 121.4 | |||||||
Accounts and notes receivable, net | 1,554.2 | 1,482.9 | |||||||
Inventories | 1,425.8 | 1,295.3 | |||||||
Prepaid expenses and deferred income taxes | 295.5 | 288.2 | |||||||
Total current assets | 3,389.8 | 3,187.8 | |||||||
Property, plant and equipment, net | 1,630.5 | 1,633.0 | |||||||
Goodwill, net | 3,991.5 | 4,811.7 | |||||||
Intangible assets, net | 888.9 | 849.1 | |||||||
Other assets and noncurrent deferred tax | 841.9 | 582.1 | |||||||
Total assets | $ 10,742.6 | $ 11,063.7 | |||||||
LIABILITIES AND EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ 734.1 | $ 761.0 | |||||||
Accrued expenses and other current liabilities | 1,549.6 | 1,526.3 | |||||||
Loans payable | 1,273.5 | 563.7 | |||||||
Total current liabilities | 3,557.2 | 2,851.0 | |||||||
Long-term debt | 2,166.2 | 2,900.7 | |||||||
Other noncurrent liabilities | 1,418.7 | 1,395.4 | |||||||
7,142.1 | 7,147.1 | ||||||||
Shareholders' equity: | |||||||||
Common stock | 169.2 | 168.0 | |||||||
Other shareholders' equity | 3,666.1 | 4,070.0 | |||||||
Accumulated other comprehensive income | (234.8) | (321.4) | |||||||
Total shareholders' equity | 3,600.5 | 3,916.6 | |||||||
Total liabilities and equity | $ 10,742.6 | $ 11,063.7 | |||||||
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION | 7 |