03.02.2004

Bobcat revenues up 32 per cent

Ingersoll-Rand has posted a 10 per cent year-on-year increase in revenues for the fourth quarter 2003, with Bobcat rising a sparkling 32 per cent. Organic growth was held accountable for six per cent of the group's gains, while four per cent was down to advantageous currency movements.

Bobcat’s performance is attributed to new product introductions and growth along with currency gains. The company has been steadily expanding its product line, including its skid-steer loaders for which it is best known and holds a commanding and enduring market share of over 50 per cent.

New products have included mini-excavators, an unusual tool carrier and telescopic handlers. It is beleived that Bobcat holds a worldwide market share for its telehandler range of between three and five per cent with plenty of growth left in this expanding market. Bobcat aquired the telehandler line from Sambron nearly three years ago.

The 2003 full year numbers

Ingersoll-Rand finished the year 11 per cent up on 2002, with total revenues of $9.9 billion, an increase of almost $1 billion. Seven per cent of the increase was put down to growth with four per cent related to positive currency gains.

Full year earnings were $644 million, of which $593 million is attributed to ongoing operations. A small loss on discontinued operations was offset by a gain of $68 million on the sale of three businesses. This compares with a loss in 2002 of $173 million.

Free cash flow for the year came in at $507 million, beating the previous forecast of $400 million.

"Activity in most of IR's major industrial and construction end markets continued to improve as we closed out 2003," said Herbert Henkel, chief executive of Ingersoll-Rand. "From our recent order pattern we see a gradual recovery in most North American and European markets and continuing growth in Asia.

"We exceeded full-year 2003 EPS expectations, despite the deferral to 2004 of a sizeable CDSOA (an anti-dumping contribution!) payment that we had expected to receive and report in the 2003 fourth quarter. We enter 2004 with strong momentum to continue pursuing our long-term objectives."

Outlook for 2004

Ingersoll-Rand expects revenue and earnings growth of between 15 and 23 per cent for 2004, with free cash flow expected to top $500 million again. The company will look to use the cash generated for bolt on acquisitions, stock buy backs and debt reduction.