EXHIBIT 99.1
INGERSOLL-RAND COMPANY LIMITED | ||||||||||
Consolidated Income Statement | ||||||||||
Fourth Quarter and Twelve Months | ||||||||||
(In millions except per share amounts) | ||||||||||
UNAUDITED | ||||||||||
Three Months | Twelve Months | |||||||||
Ended December 31, | Ended December 31, | |||||||||
2002 | 2001 | 2002 | 2001 | |||||||
Revenues | $ 2,444.6 | $ 2,275.4 | $ 8,951.3 | $ 8,604.2 | ||||||
Cost of goods sold | 1,864.8 | 1,816.4 | 6,826.5 | 6,736.6 | ||||||
Selling & administrative expenses | 398.1 | 365.4 | 1,439.8 | 1,370.4 | ||||||
Restructuring charges | 15.3 | 29.7 | 41.9 | 73.7 | ||||||
Operating income | 166.4 | 63.9 | 643.1 | 423.5 | ||||||
Interest expense | (53.3) | (61.2) | (230.3) | (249.3) | ||||||
Other income/(expense) | (4.3) | (19.4) | (25.2) | (40.2) | ||||||
Earnings before taxes | 108.8 | (16.7) | 387.6 | 134.0 | ||||||
Provision for taxes | (17.8) | (81.9) | 20.3 | (48.0) | ||||||
Earnings from continuing operations | 126.6 | 65.2 | 367.3 | 182.0 | ||||||
Discontinued operations, net of tax | 56.7 | 34.9 | 93.6 | 64.2 | ||||||
Net earnings before cumulative effect | ||||||||||
of change in accounting principle | 183.3 | 100.1 | 460.9 | 246.2 | ||||||
Cumulative effect of change in | ||||||||||
accounting principle, net of tax | - | - | (634.5) | - | ||||||
Net earnings/(loss) | $ 183.3 | $ 100.1 | $ (173.6) | $ 246.2 | ||||||
Basic earnings per share | ||||||||||
- Continuing operations | $ 0.74 | $ 0.39 | $ 2.17 | $ 1.10 | ||||||
- Discontinued operations | 0.34 | 0.21 | 0.56 | 0.39 | ||||||
- Change in accounting principle | - | - | (3.76) | - | ||||||
$ 1.08 | $ 0.60 | $ (1.03) | $ 1.49 | |||||||
Diluted earnings per share | ||||||||||
- Continuing operations | $ 0.74 | $ 0.39 | $ 2.16 | $ 1.09 | ||||||
- Discontinued operations | 0.34 | 0.20 | 0.55 | 0.39 | ||||||
- Change in accounting principle | - | - | (3.73) | - | ||||||
$ 1.08 | $ 0.59 | $ (1.02) | $ 1.48 | |||||||
Average number of common | ||||||||||
shares outstanding: | ||||||||||
Basic | 169.2 | 168.0 | 168.9 | 165.1 | ||||||
Diluted | 170.0 | 168.9 | 170.2 | 166.3 | ||||||
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION | ||||||||||
INGERSOLL-RAND COMPANY LIMITED | ||||||||||
Business Review | ||||||||||
Fourth Quarter and Twelve Months | ||||||||||
(In millions except percentages) | ||||||||||
UNAUDITED | ||||||||||
Three Months | Twelve Months | |||||||||
Ended December 31, | Ended December 31, | |||||||||
2002 | 2001 | 2002 | 2001 | |||||||
Climate Control | ||||||||||
Revenues | $ 697.2 | $ 667.0 | $ 2,466.4 | $ 2,438.2 | ||||||
Operating income/(loss) | 35.0 | (3.8) | 137.0 | 21.7 | ||||||
and as a % of revenues | 5.0% | -0.6% | 5.6% | 0.9% | ||||||
Industrial Solutions | ||||||||||
Air & Productivity Solutions | ||||||||||
Revenues | 349.5 | 322.0 | 1,311.0 | 1,308.0 | ||||||
Operating income | 23.4 | 0.5 | 74.9 | 52.7 | ||||||
and as a % of revenues | 6.7% | 0.2% | 5.7% | 4.0% | ||||||
Dresser Rand | ||||||||||
Revenues | 347.4 | 310.2 | 1,024.4 | 881.3 | ||||||
Operating income | 24.3 | 30.8 | 33.2 | 21.4 | ||||||
and as a % of revenues | 7.0% | 9.9% | 3.2% | 2.4% | ||||||
Industrial Solutions | ||||||||||
Revenues | 696.9 | 632.2 | 2,335.4 | 2,189.3 | ||||||
Operating income | 47.7 | 31.3 | 108.1 | 74.1 | ||||||
and as a % of revenues | 6.8% | 5.0% | 4.6% | 3.4% | ||||||
Infrastructure | ||||||||||
Revenues | 662.8 | 610.7 | 2,651.1 | 2,570.3 | ||||||
Operating income | 41.6 | 29.4 | 238.7 | 219.7 | ||||||
and as a % of revenues | 6.3% | 4.8% | 9.0% | 8.5% | ||||||
Security & Safety | ||||||||||
Revenues | 387.7 | 365.5 | 1,498.4 | 1,406.4 | ||||||
Operating income | 72.6 | 59.0 | 273.3 | 230.8 | ||||||
and as a % of revenues | 18.7% | 16.1% | 18.2% | 16.4% | ||||||
Total | ||||||||||
Revenues | $ 2,444.6 | $ 2,275.4 | $ 8,951.3 | $ 8,604.2 | ||||||
Operating income | 196.9 | 115.9 | 757.1 | 546.3 | ||||||
and as a % of revenues | 8.1% | 5.1% | 8.5% | 6.3% | ||||||
Unallocated corporate expense | (30.5) | (52.0) | (114.0) | (122.8) | ||||||
Consolidated operating income | $ 166.4 | $ 63.9 | $ 643.1 | $ 423.5 | ||||||
and as a % of revenues | 6.8% | 2.8% | 7.2% | 4.9% | ||||||
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION |
INGERSOLL-RAND COMPANY LIMITED | |||||||||||||||
Consolidated Income Reconciliation | |||||||||||||||
Fourth Quarter | |||||||||||||||
(In millions except per share amounts) | |||||||||||||||
UNAUDITED | |||||||||||||||
2002 | 2001 | ||||||||||||||
Restructure | Restructure | Impact | |||||||||||||
Reported | and Other | Adjusted | Reported | and Other | of | Adjusted | |||||||||
Results | Charges | Results | Results | Charges | Reincorp. | Results | |||||||||
Revenues | $ 2,444.6 | $ - | $ 2,444.6 | $ 2,275.4 | $ - | $ - | $ 2,275.4 | ||||||||
Cost of goods sold | 1,864.8 | 7.9 | 1,856.9 | 1,816.4 | 15.7 | - | 1,800.7 | ||||||||
Selling & administrative expenses | 398.1 | 2.5 | 395.6 | 365.4 | 5.6 | 9.5 | 350.3 | ||||||||
Restructuring charges | 15.3 | 15.3 | - | 29.7 | 29.7 | - | - | ||||||||
Operating income | 166.4 | (25.7) | 192.1 | 63.9 | (51.0) | (9.5) | 124.4 | ||||||||
Interest expense | (53.3) | - | (53.3) | (61.2) | - | - | (61.2) | ||||||||
Other income/(expense) | (4.3) | - | (4.3) | (19.4) | - | - | (19.4) | ||||||||
Earnings before taxes | 108.8 | (25.7) | 134.5 | (16.7) | (51.0) | (9.5) | 43.8 | ||||||||
Provision for taxes | (17.8) | (12.2) | (5.6) | (81.9) | (12.4) | (62.7) | (6.8) | ||||||||
Earnings from continuing operations | 126.6 | (13.5) | 140.1 | 65.2 | (38.6) | 53.2 | 50.6 | ||||||||
Discontinued operations, net of tax | 56.7 | (6.1) | 62.8 | 34.9 | (7.9) | - | 42.8 | ||||||||
Net earnings before cumulative effect | |||||||||||||||
of change in accounting principle | $ 183.3 | $ (19.6) | $ 202.9 | $ 100.1 | $ (46.5) | $ 53.2 | $ 93.4 | ||||||||
Basic earnings per share: | |||||||||||||||
- Continuing operations | $ 0.74 | $ 0.83 | $ 0.39 | $ 0.30 | |||||||||||
- Discontinued operations | 0.34 | 0.37 | 0.21 | 0.26 | |||||||||||
$ 1.08 | $ 1.20 | $ 0.60 | $ 0.56 | ||||||||||||
Diluted earnings per share: | |||||||||||||||
- Continuing operations | $ 0.74 | $ 0.82 | $ 0.39 | $ 0.30 | |||||||||||
- Discontinued operations | 0.34 | 0.37 | 0.20 | 0.25 | |||||||||||
$ 1.08 | $ 1.19 | $ 0.59 | $ 0.55 | ||||||||||||
Average number of common | |||||||||||||||
shares outstanding: | |||||||||||||||
Basic | 169.2 | 169.2 | 168.0 | 168.0 | |||||||||||
Diluted | 170.0 | 170.0 | 168.9 | 168.9 | |||||||||||
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION | |||||||||||||||
INGERSOLL-RAND COMPANY LIMITED | |||||||||||||||||
Business Review Reconciliation | |||||||||||||||||
Fourth Quarter | |||||||||||||||||
(In millions except percentages) | |||||||||||||||||
UNAUDITED | |||||||||||||||||
2002 | 2001 | ||||||||||||||||
Restructure | Restructure | Impact | Excluding | ||||||||||||||
Reported | & Other | Adjusted | Reported | & Other | of | Adjusted | Goodwill | ||||||||||
Results | Charges | Results | Results | Charges | Reincorp. | Results | Amort.* | ||||||||||
Climate Control | |||||||||||||||||
Revenues | $ 697.2 | $ - | $ 697.2 | $ 667.0 | $ - | $ - | $ 667.0 | $ 667.0 | |||||||||
Operating income | 35.0 | (6.4) | 41.4 | (3.8) | (22.1) | - | 18.3 | 39.6 | |||||||||
and as a % of revenues | 5.0% | 5.9% | -0.6% | 2.7% | 5.9% | ||||||||||||
Industrial Solutions | |||||||||||||||||
Air & Productivity Solutions | |||||||||||||||||
Revenues | 349.5 | - | 349.5 | 322.0 | - | - | 322.0 | 322.0 | |||||||||
Operating income | 23.4 | (9.4) | 32.8 | 0.5 | (9.4) | - | 9.9 | 11.4 | |||||||||
and as a % of revenues | 6.7% | 9.4% | 0.2% | 3.1% | 3.5% | ||||||||||||
Dresser Rand | |||||||||||||||||
Revenues | 347.4 | - | 347.4 | 310.2 | - | - | 310.2 | 310.2 | |||||||||
Operating income | 24.3 | (3.7) | 28.0 | 30.8 | (1.1) | - | 31.9 | 25.5 | |||||||||
and as a % of revenues | 7.0% | 8.1% | 9.9% | 10.3% | 8.2% | ||||||||||||
Industrial Solutions | |||||||||||||||||
Revenues | 696.9 | - | 696.9 | 632.2 | - | - | 632.2 | 632.2 | |||||||||
Operating income | 47.7 | (13.1) | 60.8 | 31.3 | (10.5) | - | 41.8 | 36.9 | |||||||||
and as a % of revenues | 6.8% | 8.7% | 5.0% | 6.6% | 5.8% | ||||||||||||
Infrastructure | |||||||||||||||||
Revenues | 662.8 | - | 662.8 | 610.7 | - | - | 610.7 | 610.7 | |||||||||
Operating income | 41.6 | (1.2) | 42.8 | 29.4 | (2.4) | - | 31.8 | 38.2 | |||||||||
and as a % of revenues | 6.3% | 6.5% | 4.8% | 5.2% | 6.3% | ||||||||||||
Security & Safety | |||||||||||||||||
Revenues | 387.7 | - | 387.7 | 365.5 | - | - | 365.5 | 365.5 | |||||||||
Operating income | 72.6 | (4.7) | 77.3 | 59.0 | (3.6) | - | 62.6 | 66.2 | |||||||||
and as a % of revenues | 18.7% | 19.9% | 16.1% | 17.1% | 18.1% | ||||||||||||
Total | |||||||||||||||||
Revenues | $ 2,444.6 | $ - | $ 2,444.6 | $ 2,275.4 | $ - | $ - | $ 2,275.4 | $ 2,275.4 | |||||||||
Operating income | 196.9 | (25.4) | 222.3 | 115.9 | (38.6) | - | 154.5 | 180.9 | |||||||||
and as a % of revenues | 8.1% | 9.1% | 5.1% | 6.8% | 8.0% | ||||||||||||
Unallocated corporate expense | (30.5) | (0.3) | (30.2) | (52.0) | (12.4) | (9.5) | (30.1) | (30.1) | |||||||||
Consolidated operating income | $ 166.4 | $ (25.7) | $ 192.1 | $ 63.9 | $ (51.0) | $ (9.5) | $ 124.4 | $ 150.8 | |||||||||
and as a % of revenues | 6.8% | 7.9% | 2.8% | 5.5% | 6.6% | ||||||||||||
* 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 |
INGERSOLL-RAND COMPANY LIMITED | |||||||||||||||
Consolidated Income Reconciliation | |||||||||||||||
Full Year | |||||||||||||||
(In millions except per share amounts) | |||||||||||||||
UNAUDITED | |||||||||||||||
2002 | 2001 | ||||||||||||||
Restructure | Restructure | Impact | |||||||||||||
Reported | and Other | Adjusted | Reported | and Other | of | Adjusted | |||||||||
Results | Charges | Results | Results | Charges | Reincorp. | Results | |||||||||
Revenues | $ 8,951.3 | $ - | $ 8,951.3 | $ 8,604.2 | $ - | $ - | $ 8,604.2 | ||||||||
Cost of goods sold | 6,826.5 | 25.2 | 6,801.3 | 6,736.6 | 74.3 | - | 6,662.3 | ||||||||
Selling & administrative expenses | 1,439.8 | 8.2 | 1,431.6 | 1,370.4 | 34.3 | 9.5 | 1,326.6 | ||||||||
Restructuring charges | 41.9 | 41.9 | - | 73.7 | 73.7 | - | - | ||||||||
Operating income | 643.1 | (75.3) | 718.4 | 423.5 | (182.3) | (9.5) | 615.3 | ||||||||
Interest expense | (230.3) | - | (230.3) | (249.3) | - | - | (249.3) | ||||||||
Other income/(expense) | (25.2) | - | (25.2) | (40.2) | - | - | (40.2) | ||||||||
Earnings before taxes | 387.6 | (75.3) | 462.9 | 134.0 | (182.3) | (9.5) | 325.8 | ||||||||
Provision for taxes | 20.3 | (25.6) | 45.9 | (48.0) | (56.3) | (62.7) | 71.0 | ||||||||
Earnings from continuing operations | 367.3 | (49.7) | 417.0 | 182.0 | (126.0) | 53.2 | 254.8 | ||||||||
Discontinued operations, net of tax | 93.6 | (17.7) | 111.3 | 64.2 | (23.6) | - | 87.8 | ||||||||
Net earnings before cumulative effect | |||||||||||||||
of change in accounting principle | $ 460.9 | $ (67.4) | $ 528.3 | $ 246.2 | $ (149.6) | $ 53.2 | $ 342.6 | ||||||||
Basic earnings per share: | |||||||||||||||
- Continuing operations | $ 2.17 | $ 2.47 | $ 1.10 | $ 1.54 | |||||||||||
- Discontinued operations | 0.56 | 0.66 | 0.39 | 0.53 | |||||||||||
$ 2.73 | $ 3.13 | $ 1.49 | $ 2.07 | ||||||||||||
Diluted earnings per share: | |||||||||||||||
- Continuing operations | $ 2.16 | $ 2.45 | $ 1.09 | $ 1.53 | |||||||||||
- Discontinued operations | 0.55 | 0.65 | 0.39 | 0.53 | |||||||||||
$ 2.71 | $ 3.10 | $ 1.48 | $ 2.06 | ||||||||||||
Average number of common | |||||||||||||||
shares outstanding: | |||||||||||||||
Basic | 168.9 | 168.9 | 165.1 | 165.1 | |||||||||||
Diluted | 170.2 | 170.2 | 166.3 | 166.3 | |||||||||||
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION | |||||||||||||||
Business Review Reconciliation | |||||||||||||||||
Full Year | |||||||||||||||||
(In millions except percentages) | |||||||||||||||||
UNAUDITED | |||||||||||||||||
2002 | 2001 | ||||||||||||||||
Restructure | Restructure | Impact | Excluding | ||||||||||||||
Reported | & Other | Adjusted | Reported | & Other | of | Adjusted | Goodwill | ||||||||||
Results | Charges | Results | Results | Charges | Reincorp. | Results | Amort.* | ||||||||||
Climate Control | |||||||||||||||||
Revenues | $ 2,466.4 | $ - | $ 2,466.4 | $ 2,438.2 | $ - | $ - | $ 2,438.2 | $ 2,438.2 | |||||||||
Operating income | 137.0 | (16.3) | 153.3 | 21.7 | (63.8) | - | 85.5 | 171.3 | |||||||||
and as a % of revenues | 5.6% | 6.2% | 0.9% | 3.5% | 7.0% | ||||||||||||
Industrial Solutions | |||||||||||||||||
Air & Productivity Solutions | |||||||||||||||||
Revenues | 1,311.0 | - | 1,311.0 | 1,308.0 | - | - | 1,308.0 | 1,308.0 | |||||||||
Operating income | 74.9 | (19.1) | 94.0 | 52.7 | (37.8) | - | 90.5 | 94.1 | |||||||||
and as a % of revenues | 5.7% | 7.2% | 4.0% | 6.9% | 7.2% | ||||||||||||
Dresser Rand | |||||||||||||||||
Revenues | 1,024.4 | - | 1,024.4 | 881.3 | - | - | 881.3 | 881.3 | |||||||||
Operating income | 33.2 | (5.2) | 38.4 | 21.4 | (9.2) | - | 30.6 | 30.8 | |||||||||
and as a % of revenues | 3.2% | 3.7% | 2.4% | 3.5% | 3.5% | ||||||||||||
Industrial Solutions | |||||||||||||||||
Revenues | 2,335.4 | - | 2,335.4 | 2,189.3 | - | - | 2,189.3 | 2,189.3 | |||||||||
Operating income | 108.1 | (24.3) | 132.4 | 74.1 | (47.0) | - | 121.1 | 124.9 | |||||||||
and as a % of revenues | 4.6% | 5.7% | 3.4% | 5.5% | 5.7% | ||||||||||||
Infrastructure | |||||||||||||||||
Revenues | 2,651.1 | - | 2,651.1 | 2,570.3 | - | - | 2,570.3 | 2,570.3 | |||||||||
Operating income | 238.7 | (13.1) | 251.8 | 219.7 | (18.2) | - | 237.9 | 264.1 | |||||||||
and as a % of revenues | 9.0% | 9.5% | 8.5% | 9.3% | 10.3% | ||||||||||||
Security & Safety | |||||||||||||||||
Revenues | 1,498.4 | - | 1,498.4 | 1,406.4 | - | - | 1,406.4 | 1,406.4 | |||||||||
Operating income | 273.3 | (14.3) | 287.6 | 230.8 | (28.2) | - | 259.0 | 273.3 | |||||||||
and as a % of revenues | 18.2% | 19.2% | 16.4% | 18.4% | 19.4% | ||||||||||||
Total | |||||||||||||||||
Revenues | $ 8,951.3 | $ - | $ 8,951.3 | $ 8,604.2 | $ - | $ - | $ 8,604.2 | $ 8,604.2 | |||||||||
Operating income | 757.1 | (68.0) | 825.1 | 546.3 | (157.2) | - | 703.5 | 833.6 | |||||||||
and as a % of revenues | 8.5% | 9.2% | 6.3% | 8.2% | 9.7% | ||||||||||||
Unallocated corporate expense | (114.0) | (7.3) | (106.7) | (122.8) | (25.1) | (9.5) | (88.2) | (88.2) | |||||||||
Consolidated operating income | $ 643.1 | $ (75.3) | $ 718.4 | $ 423.5 | $ (182.3) | $ (9.5) | $ 615.3 | $ 745.4 | |||||||||
and as a % of revenues | 7.2% | 8.0% | 4.9% | 7.2% | 8.7% | ||||||||||||
* 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 | |||||||||||||||||
INGERSOLL-RAND COMPANY LIMITED | ||||||
Condensed Consolidated Balance Sheet | ||||||
(In millions) | ||||||
UNAUDITED | ||||||
December | December | |||||
31, 2002 | 31, 2001 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash, cash equivalents and marketable securities | $ 344.0 | $ 121.4 | ||||
Accounts and notes receivable, net | 1,405.3 | 1,359.8 | ||||
Inventories | 1,189.8 | 1,143.9 | ||||
Asset for sale | 790.0 | 731.0 | ||||
Prepaid expenses and deferred income taxes | 342.6 | 321.5 | ||||
Total current assets | 4,071.7 | 3,677.6 | ||||
Property, plant and equipment, net | 1,279.9 | 1,289.6 | ||||
Goodwill, net | 4,005.5 | 4,807.5 | ||||
Intangible assets, net | 890.9 | 848.0 | ||||
Other assets and noncurrent deferred tax | 560.3 | 489.6 | ||||
Total assets | $ 10,808.3 | $ 11,112.3 | ||||
LIABILITIES AND EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ 730.3 | $ 701.6 | ||||
Accrued expenses and other current liabilities | 1,727.3 | 1,475.1 | ||||
Liabilities for sale | 303.7 | 237.9 | ||||
Loans payable | 1,155.5 | 561.9 | ||||
Total current liabilities | 3,916.8 | 2,976.5 | ||||
Long-term debt | 2,092.1 | 2,900.7 | ||||
Other noncurrent liabilities | 1,321.2 | 1,318.5 | ||||
7,330.1 | 7,195.7 | |||||
Shareholders' equity: | ||||||
Common stock | 169.2 | 168.0 | ||||
Other shareholders' equity | 3,822.1 | 4,070.0 | ||||
Accumulated other comprehensive income | (513.1) | (321.4) | ||||
Total shareholders' equity | 3,478.2 | 3,916.6 | ||||
Total liabilities and equity | $ 10,808.3 | $ 11,112.3 | ||||
SEE ATTACHED RELEASE FOR ADDITIONAL INFORMATION | ||||||