27.07.2004

Bobcat grows by 24 percent

Ingersoll Rand Group revenues increased by 12% to $2,713.9 million in the second quarter 2004 compared to the same period in 2003, while profits jumped by an amazing 75 percent to $286.2 million

Bobcat compact equipment, the skid steer and telehandler producer is the major business within the groups Infrastructure sector, which also includes golf carts, utility vehicles, road pavers, compactors, portable-power products and general- purpose construction equipment. Total sector revenues increased by approximately 24% to $886.5 million compared to $716.5 million in the 2003 second quarter. Operating margins increased to 15.3%, compared to 12.8% in the second quarter of 2003.

Bobcat revenues for the second quarter of 2004 increased by 24% compared to last year, due to new product introductions, improving North American markets, and the benefit of a weaker U.S. dollar. Bobcat margins improved as well, reflecting volume gains and the benefit of productivity initiatives in addition to the exchange benefits of a stronger euro.

Herbert L. Henkel, chairman, president and chief executive officer said "Earnings and operating margins improved significantly, compared to the second quarter 2003, as we benefited from increased revenues and operating efficiencies. Additionally, we successfully completed the sale of our Drilling Solutions business, an important move that will enable us to better focus on the businesses and markets that will promote future dramatic growth."

"Activity in most of IR's major end markets continued to improve during the second quarter of 2004," said Henkel. "Second-quarter orders for the total company increased by approximately 16% compared to last year's activity. From our recent order pattern, we see a continuing recovery in most North American and European markets and continuing growth in Asia.

The company is now projecting a 40 percent increase in full year earnings per share over 2003.