Ingersoll-Rand Reports Record Full-Year 2000 Earnings Per Share; Continuing Diluted EPS of $3.76 Meets Company's Expectations
WOODCLIFF LAKE, N.J.--Jan. 24, 2001--Ingersoll-Rand Company , a leading diversified industrial enterprise, today reported record earnings and earnings per share for full-year 2000.Reported net earnings for the full year were $669.4 million, or diluted earnings per share (DEPS) of $4.12. For the year, net earnings from continuing operations, excluding one-time gains and charges related to restructuring and productivity investments, were $611.3 million, or DEPS of $3.76, including the negative impact of approximately 28 cents per share related to currency, principally from the decline in the value of the euro. The DEPS for 2000, excluding earnings from assets held for sale, represent a 14% increase over comparable 1999 DEPS results.
Full-year 2000 net revenues from continuing operations were $8,617.6 million, a 12.4% increase compared to $7,666.7 million for 1999. Excluding the revenues of Hussmann, which was acquired June 14, 2000, annual net revenues increased by 3%.
Net earnings from continuing operations of $611.3 million, exclude an after-tax gain totaling $155.0 million resulting from the sales of Ingersoll-Dresser Pumps (IDP) and the compression services business of Dresser-Rand Company (D-R); IDP's results prior to its sale; and one-time charges for restructuring and productivity investments of $95.3 million. Results from continuing operations include the remaining portion of D-R, which is classified as assets held for sale in continuing operations.
Free cash flow before restructuring for full-year 2000 was $478 million and marks the fourth consecutive year that free cash flow has exceeded $400 million. Free cash flow is calculated after deducting capital expenditures and dividends.
Charges for Restructuring and Productivity Investments
During the third quarter of 2000, IR initiated a program to reduce costs and accelerate productivity initiatives throughout the company. The total pre-tax cost of this program will be approximately $325 million and will include plant rationalizations, organizational realignments consistent with the company's new market-based structure and the consolidation of "back office" business processes. These investments, which will reduce company-wide headcount by approximately 8%, are expected to be substantially completed by year-end 2001.
After-tax charges for restructuring and productivity investments for full-year 2000 totaled $95.3 million, including $9.9 million for D-R, which is classified as assets held for sale. Charges for the fourth quarter totaled $56.2 million, including $4.8 million for D-R. These charges include accrued restructuring costs and period costs which are recorded as incurred. IR will record additional charges for this program in 2001. This program contributed approximately 3 cents to DEPS for the fourth quarter and 4 cents for the second half of 2000.
Fourth-quarter Results
Net revenues from continuing operations in the fourth quarter were $2,199.2 million, an increase of 17%, compared to $1,887.5 million in the 1999 fourth quarter. Excluding Hussmann and the unfavorable effects of currency translation, revenues increased by 2% in the fourth quarter of 2000, compared to the same period of 1999. Reported net earnings for the quarter were $106.1 million, or DEPS of 66 cents. Excluding one-time charges related to restructuring and productivity investments, fourth-quarter net earnings from continuing operations were $162.3 million or DEPS of $1.00, an improvement of 8%, compared to DEPS from continuing operations of 93 cents in the fourth quarter of 1999. The negative effect of currency in the quarter was 8 cents per share.
Fourth-quarter Business Review
The business sector review excludes the impact of charges for restructuring and productivity investments.
| - | The Climate Control Sector includes Thermo King(R) transport temperature control equipment and Hussmann, the world leader in display case refrigeration. Revenues for the sector more than doubled and operating earnings increased by 70%, compared to 1999's fourth quarter, as a result of the Hussmann acquisition. Operating margins for the sector decreased from 12.7% to 10.7% due to the inclusion of Hussmann results net of goodwill, the declining North American truck and trailer market, and the unfavorable effect of foreign currency. Thermo King revenues decreased by 5% compared to 1999. The continued growth in the bus air-conditioning and sea-going container businesses was more than offset by the double-digit decline in the North American truck and trailer market, continued weak truck and trailer results in Europe, and the unfavorable effects of currency. Hussmann revenues for the fourth quarter fell slightly short of expectations due to reduced capital spending by several major supermarket chains. |
| - | The Industrial Productivity Sector is composed of a diverse group of businesses focused on providing solutions to enhance customers' industrial efficiency. Fourth-quarter revenues increased by approximately 1%, operating income improved by 4% and operating margins improved to 14.8% of revenues, compared to 14.3% in 1999. Industrial Productivity consists of three businesses: Air Solutions, Bearings and Components, and Industrial Products. Air Solutions provides equipment and services for compressed air systems. Revenues increased by 11% and operating income improved by 24%, with operating margins improving to 16.6% of revenues, compared to 14.8% in 1999. The business' performance benefited primarily from IR's increasing emphasis on the aftermarket business and ongoing cost and expense reduction activities. Bearings and Components provides motion-control technologies for OEM and aftermarket applications to both the automotive and industrial markets. Reported revenues in the fourth quarter declined by almost 9%, and operating earnings declined by 6% due to lower volumes in the automotive market. Operating margins improved from 16.3% in 1999 to 16.9% due to significant ongoing cost and expense reduction activities. Industrial Products includes Club Car(R) golf cars and utility vehicles; tools; and fluid products equipment. Revenues for the quarter increased by 5%, compared to 1999, while operating earnings were flat. Margins declined to 10.7% compared to 11.2% in 1999, principally due to increased spending on new product introductions and the negative effects of currency. |
| - | The Infrastructure Sector includes Bobcat(R) compact equipment and Ingersoll-Rand(R) road pavers, compactors, portable-power products and drilling equipment. The sector's revenues declined by 5% as Bobcat's revenue improvement was offset by softness in the road development and portable power markets. Operating margins for the sector improved to 17.6% of sales, compared to 17.0% in 1999, due to aggressive cost and expense reduction activities. |
| - | The Security and Safety Sector includes architectural hardware products and electronic access-control technologies. Results continued to be strong in the fourth quarter with revenues increasing by 7% and operating earnings increasing by 17%. Operating margins improved from 20.3% in the fourth quarter of 1999 to 22.2% of revenues in 2000. |
Comparisons of Other Quarterly Income Statement Items
Interest expense for the quarter of $75.4 million was $28.0 million higher than the 1999 fourth quarter due to the impact of the debt incurred for the purchase of Hussmann. This increase was partially offset by lower year-over-year debt levels in IR's other operations.
Other expense totaled $21.4 million of net expenses for the fourth quarter, compared to $16.7 million in last year's fourth quarter. This change is primarily attributable to increased foreign exchange losses.
Results from assets held for sale represents the remaining portion of D-R that was reclassified in the third quarter to a single line item in continuing operations, net of taxes. Reported fourth-quarter net earnings of $8.9 million included one-time after-tax charges of $4.8 million for restructuring charges related to organizational realignments. Excluding these charges, D-R contributed $13.7 million to fourth-quarter 2000 net earnings, or about 9 cents per share, compared to 7 cents per share in 1999.
The company's effective tax rate for continuing operations, without D-R, was 36.8% in the fourth quarter of 2000, as compared to 35.5% in 1999. Excluding both D-R and charges related to restructuring and productivity investments, the company's effective tax rate for the year was 34.75%, as compared to 35.5% in 1999, reflecting tax credits reported in the second quarter of 2000 and other ongoing tax planning initiatives. Excluding D-R and restructuring charges, the tax rate for 2001 is expected to be 34.75%.
2001 Outlook
Based on the current slowing economic environment, diluted earnings per share from continuing operations for 2001 are expected to be in the range of $3.75 to $3.85, excluding restructuring charges. Revenues in 2001 are expected to increase by approximately 8% to 9%. Excluding the acquisition of Hussmann, 2001 revenues are expected to increase slightly, driven by growth from new product introductions. "There is growing evidence that higher interest and energy costs and declining confidence in the economy have substantially slowed the growth of the major end markets we serve," said Herbert L. Henkel, chairman, president and chief executive officer.
"North American auto and light-truck production is expected to decline, and the North American heavy-duty truck and trailer market will continue to decline substantially due to weak demand. Construction spending and industrial production are also showing clear signs of a slowdown."
Although the full-year 2001 diluted earnings per share expectation includes a 20 cent benefit from corporate-wide restructuring and a contribution of approximately 8 cents from the Hussmann acquisition, earnings will be negatively affected by product mix and pricing pressure in certain end markets. IR will also have approximately 6 cents of dilution from the expected conversion of equity-linked securities in May 2001. With respect to Independent Power, IR will invest an additional $15 million (approximately 6 cents share) in 2001 to commercialize the company's PowerWorks(TM) microturbine product line and remains on track to deliver microturbines in the second half of 2001.
First-quarter 2001 earnings per share from continuing operations are expected to be approximately 60 to 65 cents, compared to record results in the first quarter of 2000 of 80 cents. This is primarily due to dilution from the Hussmann acquisition of approximately 15 cents per share. The interest expense and straight-line amortization of goodwill associated with the acquisition will have a pronounced effect in the first quarter due to the typical seasonal earnings pattern in that business and deferred spending by supermarket customers. The first quarter will also be impacted by the decline in North American and European truck and trailer and U.S. automotive end markets; slowing construction activity; and the negative effect of currency. A gradual improvement in the economy, coupled with restructuring benefits, will generate favorable year-over-year earnings comparisons in the second half of 2001.
IR is a leading innovation and solutions provider for the major global markets of Security and Safety, Climate Control, Industrial Productivity 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.
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 these 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 quarter ended September 30, 2000.
(See Accompanying Tables)
INGERSOLL-RAND COMPANY
Consolidated Income Statement
Fourth Quarter and Twelve Months
(In millions except percentages and per share figures)
UNAUDITED
Three months Twelve months
ended December 31, ended December 31,
2000 1999 2000 1999
Revenues $ 2,199.2 $ 1,887.5 $ 8,617.6 $ 7,666.7
Cost of goods sold 1,605.9 1,331.7 6,280.4 5,515.0
Administrative selling & service
engineering expenses 296.8 272.8 1,146.7 1,052.4
Restructuring charges 46.0 - 76.2 -
Operating income 250.5 283.0 1,114.3 1,099.3
Interest expense (75.4) (47.4) (253.7) (203.1)
Other income/(expense) (21.4) (16.7) (54.6) (51.4)
Results from assets
held for sale (net of tax) 8.9 12.2 23.3 18.2
Earnings before taxes 162.6 231.1 829.3 863.0
Provision for taxes 56.5 77.7 283.1 299.9
Net earnings from continuing
operations 106.1 153.4 546.2 563.1
Discontinued operations
(net of tax) - 12.5 123.2 28.0
Net earnings $ 106.1 $ 165.9 $ 669.4 $ 591.1
Basic earnings per share
-Continuing operations $ 0.66 $ 0.94 $ 3.39 $ 3.44
-Discontinued operations - 0.08 0.76 0.17
$ 0.66 $ 1.02 $ 4.15 $ 3.61
Diluted earnings per share
-Continuing operations $ 0.66 $ 0.93 $ 3.36 $ 3.40
-Discontinued operations - 0.08 0.76 0.17
$ 0.66 $ 1.01 $ 4.12 $ 3.57
Average number of common
shares outstanding:
Basic 160.5 162.7 161.2 163.6
Diluted 161.5 164.3 162.4 165.8
Ingersoll-Rand Company
Business Review
Fourth Quarter and Twelve Months
(In millions except percentages)
UNAUDITED
Three months Twelve months
ended December 31, ended December 31,
2000 1999 2000 1999
Climate Control
Revenues $ 615.2 $ 306.5 $ 1,998.8 $ 1,208.1
Operating income 61.6 38.9 206.4 166.5
and as a % of revenues 10.0% 12.7% 10.3% 13.8%
Industrial Productivity
Air Solutions
Revenues 216.9 195.4 825.9 734.9
Operating income 26.9 29.0 93.7 89.3
and as a % of revenues 12.4% 14.8% 11.3% 12.2%
Bearings & Components
Revenues 278.3 305.0 1,177.4 1,232.9
Operating income 36.4 49.8 159.8 145.7
and as a % of revenues 13.1% 16.3% 13.6% 11.8%
Industrial Products
Revenues 234.1 223.2 959.3 969.7
Operating income 22.9 24.9 112.4 113.5
and as a % of revenues 9.8% 11.2% 11.7% 11.7%
Industrial Productivity
Revenues 729.3 723.6 2,962.6 2,937.5
Operating income 86.2 103.7 365.9 348.5
and as a % of revenues 11.8% 14.3% 12.4% 11.9%
Infrastructure
Revenues 502.6 528.6 2,255.4 2,244.9
Operating income 78.6 89.9 375.5 393.1
and as a % of revenues 15.6% 17.0% 16.6% 17.5%
Security & Safety
Revenues 352.1 328.8 1,400.8 1,276.2
Operating income 57.5 66.7 271.6 248.4
and as a % of revenues 16.3% 20.3% 19.4% 19.5%
Total
Revenues $ 2,199.2 $ 1,887.5 $ 8,617.6 $ 7,666.7
Operating income 283.9 299.2 1,219.4 1,156.5
and as a % of revenues 12.9% 15.9% 14.2% 15.1%
Unallocated corporate expense (33.4) (16.2) (105.1) (57.2)
Consolidated operating
income $ 250.5 $ 283.0 $ 1,114.3 $ 1,099.3
and as a % of revenues 11.4% 15.0% 12.9% 14.3%
INGERSOLL-RAND COMPANY
Consolidated Income Reconciliation
Bridge Income Statement - Fourth Quarter
(In millions except percentages and per share figures)
UNAUDITED
2000 1999
Restructure IDP &
Reported and Other D-R Adjusted Reported
Results Charges Gains Results Results
Revenues $ 2,199.2 $ - $ - $ 2,199.2 $ 1,887.5
Cost of goods sold 1,605.9 8.8 1,597.1 1,331.7
Administrative selling & service
engineering expenses 296.8 18.7 278.1 272.8
Restructuring charges 46.0 46.0 - -
Operating income 250.5 (73.5) 324.0 283.0
Interest expense (75.4) (75.4) (47.4)
Other income/(expense) (21.4) (21.4) (16.7)
Results from assets
held for sale
(net of tax) 8.9 (4.8) 13.7 12.2
Earnings before taxes 162.6 (78.3) - 240.9 231.1
Provision for taxes 56.5 (22.1) 78.6 77.7
Net earnings from
continuing operations 106.1 (56.2) - 162.3 153.4
Discontinued operations
(net of tax) - - - - 12.5
Net earnings $ 106.1 $ (56.2) $ - $ 162.3 $ 165.9
Basic earnings per share
-Continuing
operations $ 0.66 $ (0.35) $ - $ 1.01 $ 0.94
-Discontinued
operations - - - - 0.08
$ 0.66 $ (0.35) $ - $ 1.01 $ 1.02
Diluted earnings per share
-Continuing
operations $ 0.66 $ (0.34) $ - $ 1.00 $ 0.93
-Discontinued
operations - - - - 0.08
$ 0.66 $ (0.34) $ - $ 1.00 $ 1.01
Average number of common
shares outstanding:
Basic 160.5 162.7
Diluted 161.5 164.3
INGERSOLL-RAND COMPANY
Business Review Reconciliation
Fourth Quarter
(In millions except percentages)
UNAUDITED
2000 1999
Restructure
Reported and Other Adjusted Reported
Results Charges Results Results
Climate Control
Revenues $ 615.2 $ - $ 615.2 $ 306.5
Operating income 61.6 (4.5) 66.1 38.9
and as a
% of revenues 10.0% 10.7% 12.7%
Industrial Productivity
Air Solutions
Revenues 216.9 216.9 195.4
Operating income 26.9 (9.2) 36.1 29.0
and as a
% of revenues 12.4% 16.6% 14.8%
Bearings & Components
Revenues 278.3 278.3 305.0
Operating income 36.4 (10.6) 47.0 49.8
and as a
% of revenues 13.1% 16.9% 16.3%
Industrial Products
Revenues 234.1 234.1 223.2
Operating income 22.9 (2.1) 25.0 24.9
and as a
% of revenues 9.8% 10.7% 11.2%
Industrial Productivity
Revenues 729.3 729.3 723.6
Operating income 86.2 (21.9) 108.1 103.7
and as a
% of revenues 11.8% 14.8% 14.3%
Infrastructure
Revenues 502.6 502.6 528.6
Operating income 78.6 (10.1) 88.7 89.9
and as a
% of revenues 15.6% 17.6% 17.0%
Security & Safety
Revenues 352.1 352.1 328.8
Operating income 57.5 (20.5) 78.0 66.7
and as a
% of revenues 16.3% 22.2% 20.3%
Total
Revenues $ 2,199.2 $ - $ 2,199.2 $ 1,887.5
Operating income 283.9 (57.0) 340.9 299.2
and as a
% of revenues 12.9% 15.5% 15.9%
Unallocated corporate
expense (33.4) (16.5) (16.9) (16.2)
Consolidated
operating income $ 250.5 $ (73.5) $ 324.0 $ 283.0
and as a
% of revenues 11.4% 14.7% 15.0%
INGERSOLL-RAND COMPANY
Consolidated Income Reconciliation
Bridge Income Statement - Full Year
(In millions except percentages and per share figures)
UNAUDITED
2000 1999
Restructure IDP &
Reported and Other D-R Adjusted Reported
Results Charges Gains Results Results
Revenues $8,617.6 $ - $ - $8,617.6 $7,666.7
Cost of goods sold 6,280.4 22.0 6,258.4 5,515.0
Administrative
selling & service
engineering
expenses 1,146.7 28.0 1,118.7 1,052.4
Restructuring charges 76.2 76.2 - -
Operating income 1,114.3 (126.2) 1,240.5 1,099.3
Interest expense (253.7) (253.7) (203.1)
Other income/(expense) (54.6) (54.6) (51.4)
Results from assets
held for sale
(net of tax) 23.3 (9.9) 30.2 3.0 18.2
Earnings before taxes 829.3 (136.1) 30.2 935.2 863.0
Provision for taxes 283.1 (40.8) 323.9 299.9
Net earnings from
continuing
operations 546.2 (95.3) 30.2 611.3 563.1
Discontinued operations
(net of tax) 123.2 124.8 (1.6) 28.0
Net earnings $669.4 $(95.3) $155.0 $609.7 $591.1
Basic earnings per
share
-Continuing
operations $3.39 $(0.58) $0.18 $3.79 $3.44
-Discontinued
operations 0.76 - 0.77 (0.01) 0.17
$4.15 $(0.58) $0.95 $3.78 $3.61
Diluted earnings
per share
-Continuing
operations $3.36 $(0.58) $0.18 $3.76 $3.40
-Discontinued
operations 0.76 - 0.77 (0.01) 0.17
$4.12 $(0.58) $0.95 $3.75 $3.57
Average number of
common shares
outstanding:
Basic 161.2 163.6
Diluted 162.4 165.8
INGERSOLL-RAND COMPANY
Business Review Reconciliation
Full Year
(In millions except percentages)
UNAUDITED
2000 1999
Restructure
Reported and Other Adjusted Reported
Results Charges Results Results
Climate Control
Revenues $ 1,998.8 $ - $ 1,998.8 $ 1,208.1
Operating income 206.4 (10.5) 216.9 166.5
and as a % of
revenues 10.3% 10.9% 13.8%
Industrial
Productivity
Air Solutions
Revenues 825.9 825.9 734.9
Operating income 93.7 (14.8) 108.5 89.3
and as a % of
revenues 11.3% 13.1% 12.2%
Bearings & Components
Revenues 1,177.4 1,177.4 1,232.9
Operating income 159.8 (12.8) 172.6 145.7
and as a % of
revenues 13.6% 14.7% 11.8%
Industrial Products
Revenues 959.3 959.3 969.7
Operating income 112.4 (8.5) 120.9 113.5
and as a % of
revenues 11.7% 12.6% 11.7%
Industrial Productivity
Revenues 2,962.6 2,962.6 2,937.5
Operating income 365.9 (36.1) 402.0 348.5
and as a % of
revenues 12.4% 13.6% 11.9%
Infrastructure
Revenues 2,255.4 2,255.4 2,244.9
Operating income 375.5 (19.9) 395.4 393.1
and as a % of
revenues 16.6% 17.5% 17.5%
Security & Safety
Revenues 1,400.8 1,400.8 1,276.2
Operating income 271.6 (24.0) 295.6 248.4
and as a % of
revenues 19.4% 21.1% 19.5%
Total
Revenues $ 8,617.6 $ - $ 8,617.6 $ 7,666.7
Operating income 1,219.4 (90.5) 1,309.9 1,156.5
and as a % of
revenues 14.2% 15.2% 15.1%
Unallocated
corporate expense (105.1) (35.7) (69.4) (57.2)
Consolidated
operating income $ 1,114.3 $ (126.2) $ 1,240.5 $ 1,099.3
and as a % of revenues 12.9% 14.4% 14.3%
INGERSOLL-RAND COMPANY
Income Statement - As Reported
2000 By Quarter
(In millions except percentages)
UNAUDITED
2000
1Q 2Q 3Q 4Q FY
Revenues $1,976.7 $2,185.8 $2,255.9 $2,199.2 $8,617.6
Cost of goods sold 1,437.9 1,567.7 1,668.9 1,605.9 6,280.4
and as a % of
revenues 72.7% 71.7% 74.0% 73.0% 72.9%
Administrative
selling & service
engineering
expenses 269.5 269.6 310.8 296.8 1,146.7
and as a % of
revenues 13.6% 12.3% 13.8% 13.5% 13.3%
Restructuring
charges 30.2 46.0 76.2
and as a % of
revenues 0.0% 0.0% 1.3% 2.1% 0.9%
Operating income 269.3 348.5 246.0 250.5 1,114.3
and as a % of
revenues 13.6% 15.9% 10.9% 11.4% 12.9%
Interest expense (48.2) (55.3) (74.8) (75.4) (253.7)
Other income/
(expense) (4.6) (16.7) (11.9) (21.4) (54.6)
Results from
assets
held for sale
(net of tax) (7.9) (5.7) 28.0 8.9 23.3
Earnings before
taxes 208.6 270.8 187.3 162.6 829.3
Provision for
taxes 76.9 93.1 56.6 56.5 283.1
Tax rate 36.9% 34.4% 30.2% 34.7% 34.1%
Net earnings from
continuing
operations 131.7 177.7 130.7 106.1 546.2
Discontinued
operations
(net of tax) 4.3 (2.3) 121.2 - 123.2
Net earnings $ 136.0 $ 175.4 $ 251.9 $ 106.1 $ 669.4
Basic earnings
per share
-Continuing
operations $ 0.81 $ 1.11 $ 0.81 $ 0.66 $ 3.39
-Discontinued
operations 0.03 (0.02) 0.75 - 0.76
$ 0.84 $ 1.09 $ 1.56 $ 0.66 $ 4.15
Diluted earnings
per share
-Continuing
operations $ 0.80 $ 1.10 $ 0.80 $ 0.66 $ 3.36
-Discontinued
operations 0.03 (0.02) 0.75 - 0.76
$ 0.83 $ 1.08 $ 1.55 $ 0.66 $ 4.12
Average number of
common shares
outstanding:
Basic 162.0 161.5 160.9 160.5 161.2
Diluted 163.3 162.8 162.1 161.5 162.4
INGERSOLL-RAND COMPANY
Income Statement - As Reported
1999 By Quarter
(In millions except percentages)
UNAUDITED
1999
1Q 2Q 3Q 4Q FY
Revenues $1,891.1 $2,042.0 $1,846.1 $1,887.5 $7,666.7
Cost of
goods sold 1,390.2 1,468.4 1,324.7 1,331.7 5,515.0
and as a
% of revenues 73.5% 71.9% 71.8% 70.6% 71.9%
Administrative
selling & service
engineering expenses 262.3 268.8 248.5 272.8 1,052.4
and as a
% of revenues 13.9% 13.2% 13.5% 14.5% 13.7%
Restructuring
charges - - - - -
and as a
% of revenues 0.0% 0.0% 0.0% 0.0% 0.0%
Operating income 238.6 304.8 272.9 283.0 1,099.3
and as a
% of revenues 12.6% 14.9% 14.8% 15.0% 14.3%
Interest expense (52.5) (53.1) (50.1) (47.4) (203.1)
Other income/(expense) (9.4) (9.5) (15.8) (16.7) (51.4)
Results from
assets held
for sale
(net of tax) 3.3 3.4 (0.7) 12.2 18.2
Earnings
before taxes 180.0 245.6 206.3 231.1 863.0
Provision
for taxes 62.7 86.0 73.5 77.7 299.9
Tax rate 34.8% 35.0% 35.6% 33.6% 34.8%
Net earnings from
continuing
operations 117.3 159.6 132.8 153.4 563.1
Discontinued operations
(net of tax) 3.8 7.0 4.7 12.5 28.0
Net earnings $ 121.1 $ 166.6 $ 137.5 $ 165.9 $ 591.1
Basic earnings
per share
-Continuing
operations $ 0.72 $ 0.97 $ 0.81 $ 0.94 $ 3.44
-Discontinued
operations 0.02 0.04 0.03 0.08 0.17
$ 0.74 $ 1.01 $ 0.84 $ 1.02 $ 3.61
Diluted earnings
per share
-Continuing
operations $ 0.71 $ 0.95 $ 0.80 $ 0.93 $ 3.40
-Discontinued
operations 0.02 0.04 0.03 0.08 0.17
$ 0.73 $ 0.99 $ 0.83 $ 1.01 $ 3.57
Average number of
common shares
outstanding:
Basic 163.6 164.5 163.9 162.7 163.6
Diluted 165.4 167.7 166.3 164.3 165.8