In mid-May, Ingersoll-Rand began to explore the choice of selling or spinning off to shareholders its Bobcat and construction-related businesses, including Utility Equipment and Attachments businesses. These businesses generated approximately $2.6 billion in revenues in 2006. The company expects to conclude its investigation in the second half of 2007.
"Our Bobcat, Utility Equipment and Attachments businesses represent world-class operations with exceptional people, products and brands; however, these businesses no longer fit Ingersoll Rand's long-term strategy," said Herbert L. Henkel, chairman, president and chief executive officer. "The eventual outcome of our process to explore strategic alternatives for these businesses will be the strategic repositioning of Ingersoll Rand away from the capital-intense, heavy-machinery profile of the company's past and toward a true diversified industrial company with powerful growth platforms consisting of climate control, industrial and security businesses. These businesses are well positioned to deliver consistent growth throughout the business cycle."