Ingersoll-Rand head describes global growth strategy

Ingersoll-Rand’s chairman, president and chief executive has detailed the company’s efforts to build a diversified business positioned for long-term, global growth. At Prudential Equity Group’s “Inside Our Best Minds” conference last month, Herbert Henkel said he expects Ingersoll-Rand to generate annual organic revenue growth of 4 to 6 percent and annual bolt-on acquisition growth of 4 to 6 percent over the next three to five years. He said the company expects half that growth to occur in international markets, such as China, where the company operates nine manufacturing facilities. Ingersoll-Rand expects products introduced in 2004 will add $300 million to total revenues by year’s end, compared to $200 million in 2003. Some of the cash proceeds from the Dresser-Rand sale will be used to implement bolt-on acquisitions that complement Ingersoll-Rand’s core business platform, Henkel said. The core platform consists of companies operating in four industry sectors: security and safety, climate control, industrial solutions and infrastructure.