Irish industrial manufacturer Ingersoll-Rand PLC is lowering its third-quarter and full-year financial outlook, citing slower-than-expected business in areas such as residential heating, ventilation and air conditioning.
The company said its golf and residential security and commercial security businesses were also slower than expected.
Its stock fell $1.75, or 5.5 percent, to $30.21 in premarket trading Friday.
The company said that it now expects earnings of 77 cents to 80 cents per share for the third quarter compared with a prior forecast for earnings between 85 cents and 95 cents per share. Revenue is anticipated in a range of $3.9 billion to $3.95 billion, down from $4.05 billion to $4.15 billion.
Analysts polled by FactSet expected earnings of 91 cents per share on revenue of $3.93 billion.
In August, Ingersoll-Rand agreed to sell a 60 percent stake in its Hussmann refrigerated display case business to the private equity firm Clayton Dubilier & Rice LLC for $195 million.
The company said its earnings guidance includes 4 cents per share from Hussman operations and excludes impairment charges. Hussmann results will also be reclassified from discontinued to continuing operations for the third quarter and all prior periods.
For the full year, the company now anticipates adjusted earnings of $2.70 to $2.80 per share. Its prior guidance was for earnings between $2.90 and $3.10 per share.
Revenue is predicted between $14.85 billion and $15 billion, down from $15.3 billion to $15.5 billion.
Analysts expect earnings of $2.96 per share on revenue of $14.83 billion.
Ingersoll-Rand said its revised outlook accounts for lower volumes, an unfavorable product mix, softer-than-expected demand in its key North American residential and commercial security markets and the stronger dollar.
The company will report its third-quarter results on Oct. 20.