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TWST: What is Ingersoll Rand?
Mr. Henkel: Ingersoll Rand is a global multi-brand company serving
diverse markets. The company focuses on delivering shareholder value by
pursuing three key activities: driving growth, fostering operational
excellence, and leveraging synergies between people, practices and
partners to create market-leading customer solutions and operating
techniques. Our goal is to generate revenue growth of 8% to 12% per
year. We also have annual targets to increase earnings per share by 12%
to 15% and ROIC by 15% for positive and, by extension, greater value for
shareholders. Ingersoll Rand is a company whose history dates back 135
years ago, when Simon Ingersoll patented the world's first steam-powered
rock drill. Over the past decade, and the past five years in
particular, the company has significantly transformed its operations. We
were a company with a cyclical business that produced capital-intensive
automotive bearings, pumps, drills for industrial mining and other large
heavy machinery. Between 1994 and 2005, Ingersoll Rand sold off these
businesses, which comprised more than 56% of its revenues, and replaced
them with higher growth, less capital-intensive businesses, such as
security, climate control, and compact equipment. With this
transformation, we have created an organization able to produce strong
revenue growth and more consistent earnings growth compared to the old-
line manufacturing profile of our past. Today, we operate through five
major business sectors. Our Climate Control Technologies Sector features
the market-leading Hussmann brand, which produces the display cases you
see in your supermarket as well as other stationary refrigeration
equipment. Climate Control Technologies also includes Thermo King, which
provides refrigeration technologies that keep perishable goods, like
seafood and produce, fresh during transport, and passengers on buses and
trains cool and comfortable. Our Compact Vehicle Technologies consists
of Bobcat, a leader in compact construction equipment used for general
landscaping, agriculture and light construction tasks, and Club Car, a
leading global provider of golf and utility vehicles. Our Construction
Technologies Sector, which provides the pavers, light towers and other
equipment used to build roads, bridges and other facets of the global
infrastructure, has the number one Northern American paving company and
European paving companies. In our Industrial Technologies Sector, we
enjoy the number one share in air compressor markets, as well as leading
positions in markets for industrial pneumatic tools and diverse
industrial equipment, like fastening and fluid handling technologies and
even nitrogen tire-inflation systems. Finally, our Security Technologies
Sector includes Schlage, a leading brand in residential and commercial
security markets. We have expanded our security business significantly
in recent years, primarily through targeted bolt-on acquisitions, and
now enjoy leading positions in diverse markets, including mechanical,
electronic and biometric security devices as well as security
integration services. When you look at the range of solutions we
deliver, it is clear that few companies can claim to positively impact
the lives of so many people around the world as Ingersoll Rand. The
locks on your door or office building may very well be Ingersoll Rand's
Schlage locks. The food you eat was probably transported using our
Thermo King refrigeration equipment. The roads you drive on were likely
built using Ingersoll Rand pavers. Our contributions to creating
progress for economies and societies form a big part of our identity. It
also motivates our people to excel in their work, whether it involves
developing innovations or devising new services that will help customers
be more profitable. In 2006, we will symbolically recognize these
contributions as we celebrate our 100th year anniversary as a company
listed on the New York Stock Exchange (ticker symbol is IR). Fewer than
10 other companies have achieved this milestone.
Tickers included in this excerpt: IR
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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