Trane Technologies Plc · NYSE:TT
Trane Technologies — Ingersoll Rand — Q3 2014 Earnings Presentation
18 slides from Trane Technologies's earnings presentation, Oct 22, 2014
Slide 1: Third-Quarter 2014 Results
Third-Quarter 2014 Results October 22, 2014
Slide 2: Safe Harbor
Safe Harbor This presentation includes “forward-looking statements,” which are statements that are not historical facts, including statements that relate to the mix of and demand for our products; performance of the markets in which we operate; our share repurchase program including the amount of sh
Slide 3: Third-Quarter 2014 Revenue and Operating Margin
Third-Quarter 2014 Revenue and Operating Margin • EPS from continuing operations: $1.10, adjusted EPS up 21% +5% $3,385M • Revenue of $3,385M, +5% and +6% Ex Fx $3,214M ‒ Moderate growth in North America and +6% strong improvement in Europe Ex FX • 7% increase in Q3 bookings, +8% Ex FX; Strong growt
Slide 4: Quarterly Year-Over-Year Order Change
Quarterly Year-Over-Year Order Change Orders, % Change Excluding Currency Reported Ex FX 8% 8% Q1 ′13 (1%) Flat Q2 2% 2% Q3 7% 8% Q4 5% 5% 5% 5% 5% Q1 ′14 5% 5% Q2 5% 5% Q3 7% 8% Q3 2014 % Change vs. Q3 2013 2% Reported Ex FX Climate 9% 9% Flat Industrial 3% 3% Total 7% 8% Q1 2013 Q2 Q3 Q4 Q1 2014 Q
Slide 5: Q3 2014 Revenue Change
Q3 2014 Revenue Change Segment Revenue Change 6% Reported Climate Ex FX 6% 3% Industrial 3% Geographic Revenue Change Reported Ex FX Americas U.S. +6% 6% 6% Europe, Middle 8% East, Africa 9% -2% Asia -2% Q3 revenue up 5% and up 6% Ex FX 5
Slide 6: Q3 2014 Operating Margin
Q3 2014 Operating Margin Operating Leverage Reported Adjusted* Segment Operating Leverage Adjusted* Year-Over-Year Revenue Change $171M $171M Climate 34% Year-Over-Year Op. Income Change $61M $52M Industrial Neg. Leverage 35% 31% Operations 27% 0.6 (0.3) 13.0% 0.8 0.1 11.8% Investment/Other (0.6) Lo
Slide 7: Climate Segment – Q3 2014
Climate Segment – Q3 2014 • Commercial HVAC bookings up mid-single digits; Revenue and Operating Margin up mid-single digits in Americas and Asia; up more than 20% in Europe $2,644M • Commercial HVAC revenues up mid-single digits +6% – Commercial equipment up mid-single digits; $2,492M growth in uni
Slide 8: Industrial Segment – Q3 2014
Industrial Segment – Q3 2014 Revenue and Operating Margin • Industrial orders up 3%; revenues up 3% +3% $741M • Air and industrial products bookings up low- $722M single digits and revenues up low-single digits +3% Ex FX – Revenues up mid-single digits in Americas and Asia and declined in Europe 15.
Slide 9: Working Capital as a % of Revenues
Working Capital as a % of Revenues 4.4% 4.0% 4.0% 3.7% 3.1% 3.1% 2.1% 2013 Q1 Q2 Q3 Q4 2014 Q1 Q2 Q3 2014 full-year free cash flow $800 to $850 million 9
Slide 10: Share Repurchase
Share Repurchase Share Repurchase, $M 1,375 • Repurchased ~2.6 million 1,200 1,160 shares for ~$160 million in Q3 ~1,170 • Repurchased ~20 million shares Repurchased 840 Q3 YTD for ~$1.2 billion Sept. YTD • Total repurchase spend target 800 for full-year 2014 of $1,375 million 2011 2012 2013 2014 F
Slide 11: Cameron Centrifugal Acquisition
Cameron Centrifugal Acquisition A leading centrifugal compression manufacturer • Leading manufacturer and service provider of Revenue by geography (2013) centrifugal compressors used in wide range of Americas AsiaPac & 30% 38% Middle East industries such as oil and gas, power generation and air sepa
Slide 12: Cameron Centrifugal Acquisition
Cameron Centrifugal Acquisition Event Date Announcement August 18, 2014 Regulatory approvals Q3 and Q4 2014 Expected close Before year end Integration Through 2015 No operational results included in 2014 2014 Earnings Impact forecast 12
Slide 13: Full-Year 2014 Revenue Forecast
Full-Year 2014 Revenue Forecast Year-Over- Organic Year Change • Moderate growth in commercial new construction in U.S. and Europe • Commercial HVAC equipment replacement and aftermarket growing low to mid-single digits Climate 4% to 5% • Transport: low teens growth in North America and Europe • Mod
Slide 14: Forecast 2014
Forecast 2014 Full Year Q4 Y-O-Y revenue change ~4% 3% to 4% EPS – continuing $3.17 to $3.21 $0.68 to $0.72 (reported) Restructure costs — $(0.03) $(0.01) Add Back EPS – continuing $3.20 to $3.24 $0.69 to $0.73 (adjusted) EPS – discontinued $(0.05) $(0.02) Shares - Millions ~275 ~270 Tax rate ~25% ~
Slide 15: Appendix
LEY Ingersoll Rand. Appendix
Slide 16: Year-Over-Year Revenue Change
Year-Over-Year Revenue Change 2013 2014 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Climate (1%) 5% 4% 8% 4% 4% 4% 6% Industrial (1%) (3%) 3% 1% Flat Flat 4% 3% Total Ingersoll Rand (1%) 3% 4% 6% 3% 3% 4% 5% Excluding FX 2013 2014 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Climate (1%) 5% 4% 8% 4% 5% 4% 6% Industrial (1%) (4%) 2% Flat (1
Slide 17: Q4 2014 Guidance Bridge
Q4 2014 Guidance Bridge 2013 EPS Continuing Operations $0.26 Operations $0.21 to $0.25 Investments (0.06) Share count, lower interest and higher tax rate (0.04) Venezuela currency (0.03) Add back: 2013 restructuring/spin related costs 0.35 EPS Continuing (Adjusted) 0.69 to 0.73 2014 restructure cost
Slide 18: am Ingersoll Rand.
am Ingersoll Rand.