Earnings Preview: Ingersoll-Rand seen posting strong 1Q

OVERVIEW: Much of Ingersoll-Rand's quarter was marked by work toward completing its $10.1 billion acquisition of Trane Inc., which was announced in December. In February, the Federal Trade Commission approved the acquisition. Earlier this month, the European Commission OK'd the deal, completing all of its regulatory requirements.

If the deal goes through next quarter as expected, Ingersoll-Rand will add the heating and cooling device maker to an already wide catalog of industrial goods, which includes golf carts, refrigerated trucks and security systems.

In January, Ingersoll-Rand said it expected to take a $227 million non-cash charge to earnings to cover pending and estimated future asbestos claims through 2053.

BY THE NUMBERS: In February, the company projected first-quarter earnings of between 70 cents and 75 cents per share. Excluding one-time charges, the company said it expects to earn between 72 cents and 77 cents per share.

Analysts polled by Thomson Financial expect first-quarter earnings of 73 cents per share, on average. Such estimates typically exclude one-time charges. Analysts forecast revenue of $$2.1 billion.

ANALYST TAKE: Deutsche Bank's Nigel Coe said in a client note he expects first-quarter earnings for Ingersoll-Rand in line with Wall Street estimates, predicting that growth in its climate segment would offset a decline in its security division.

In addition, Coe said, "at least one eye" is on Trane's first-quarter results, which it reported Tuesday. Trane said its first-quarter profit fell about 62 percent to 33 cents per share, after the company sold its kitchen and vehicle controls systems. Results beat Wall Street estimates, but its second-quarter forecast fell short of analyst expectations.

WHAT'S AHEAD: The completion of Ingersoll-Rand's acquisition of Trane now awaits approval from Trane shareholders. Trane said it will hold a special meeting sometime during its second quarter to vote on the sale, the date of which has not been set. Ingersoll-Rand has said it expects to complete the deal by May.

STOCK PERFORMANCE: Ingersoll-Rand shares fell 4 percent during the quarter to close at $44.58 on March 31. For the last 52 weeks, shares are off about 2 percent, closing Monday at $43.81.