Although Ingersoll-Rand Company Limited’s (IR) 2Q 08 revenues were in line with our estimate, earnings surpassed our expectations. The company’s revenue growth benefitted from the acquisition of Trane Inc. (Trane) on 05 June 2008 as well as strong growth across all of its segments during 2Q 08. Going forward, Management expects stable revenue growth in FY 2008, as growth in emerging markets is expected to offset the impact of slow down in the US economy. Furthermore, growth in global demand for Heating, Ventilation and Air-Conditioning (HVAC) equipment will drive the company’s revenues going forward. In addition, synergies from the acquisition of Trane are expected to improve the company’s profitability in the long term. Therefore, we maintain our positive for the common stock.

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