Miami, Florida, February 3, 2003—Ingersoll-Rand Company Limited (NYSE:IR), a leading diversified industrial firm, today detailed the company’s progress in expanding its services-related business during an appearance here at Lehman Brothers’ Industrial Select Conference.
“We are aggressively pursuing the development of our recurring revenue stream from installation and maintenance activities, aftermarket parts and service contracts,” said Herbert L. Henkel, chairman, president and chief executive officer. “We are on target to increase the company’s services-related revenues to 25% of total revenues by the end of 2003.”
In 2002, the company’s Air Solutions and Hussmann business units led the increase in Ingersoll-Rand’s overall services-related business. The company’s AirCare program, which provides comprehensive services and solutions for compressed-air equipment and installations, more than doubled during 2002 and now exceeds 8,000 contracts throughout the United States. The company’s Hussmann business unit, which provides equipment and services for stationary refrigeration, increased the number of stores covered by its national contract program from 800 at the end of 2001 to 3,300 at the end of 2002.
“Besides providing a stable revenue base, services-related business delivers significantly better profit margins than we ordinarily can achieve with most of our complete products,” said Henkel. “As we continue to develop our ability to provide comprehensive solutions for our customers, we will continue to find new opportunities to expand the services portion of our business.”
The company also described recent product innovations, including the Toolcat, a first-of-its-kind multi-purpose work vehicle from Bobcat, the leader in compact equipment, and the company’s growing participation in the security and safety industry’s ongoing transition from mechanical to electrical/biometric hardware.
In addition, the company discussed its continuing operational improvements, which contributed to the company’s fifth consecutive year of generating more than $500 million in free cash flow, excluding restructuring.
The company’s full presentation is available through the following link for 30 days after the presentation.
Ingersoll-Rand Presentation at Lehman Brothers Conference (2/3/03)
This news release includes “forward-looking statements” that involve risks and uncertainties. Political, economic, climatic, currency, tax, regulatory, technological, competitive and other factors could cause actual results to differ materially from those anticipated in the forward-looking statements. Additional information regarding risk factors and uncertainties is detailed from time to time in the company’s SEC filings, including but not limited to its report on Form 10-Q for the three months ended September 30, 2002.
Ingersoll-Rand is a leading innovation and solutions provider for the major global markets of Security and Safety, Climate Control, Industrial Solutions and Infrastructure. The company’s diverse product portfolio encompasses such leading industrial and commercial brands as Schlage locks and security solutions; Thermo King transport temperature control equipment; Hussmann commercial and retail refrigeration equipment; Bobcat compact equipment; Club Car golf cars and utility vehicles; Torrington bearings and components; PowerWorks microturbines; and Ingersoll-Rand industrial and construction equipment. In addition, IR offers products and services under many more premium brands for customers in industrial and commercial markets. Further information on IR can be found on the company’s web site at www.irco.com.