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RNS Number:2934L
Ingersoll-Rand Co
8 October 2001


Contact: Paul Dickard (Media)
         (201) 573-3120

         Joe Fimbianti (Analysts)
         (201) 573-3113


    Ingersoll-Rand Third-Quarter 2001 Earnings at Low End of Estimated Range:
                         Revises Full-Year Expectations


Woodcliff Lake, N.J., October 8, 2001 - Ingersoll-Rand Company (NYSE:IR), a 
leading diversified industrial enterprise, today announced that it expects 
third-quarter diluted earnings per share (DEPS) to be at the low end of the 
company's previous guidance of 45 to 55 cents, excluding one-time charges 
related to its restructuring program. The estimate includes approximately 8 
cents of benefit to DEPS from the positive results of ongoing tax planning 
initiatives.

Total revenues, excluding Dresser-Rand, for July and August were down about 4% 
compared to last year. However, the company experienced a 10% decline in 
revenues and a 15% decline in orders in the last three weeks of September, 
compared to the same period last year. Total revenues, excluding Dresser-Rand, 
are lower than originally expected in all four sectors and are expected to 
decline by approximately 5% compared to last year's third quarter.

Dresser-Rand's results will be consolidated into Ingersoll-Rand's third-quarter 
financial statements in accordance with GAAP, which requires reconsolidation of 
businesses held for sale for more than 12 months. Dresser-Rand's orders and 
operating earnings continue to improve, reflecting steady expansion in energy-
related end markets.

The Climate Control Sector continues to be impacted by soft demand for transport
refrigeration equipment and high levels of used equipment. Stationary 
refrigeration revenues have increased compared to the second quarter, in line 
with the normal seasonal business pattern; however, spending by major 
supermarket customers remains cautious at levels below prior forecasts.

The Industrial Productivity Sector continues to be impacted by the recession in 
the U.S. industrial economy as evidenced by the continuing decline in the 
Industrial Production Index, U.S. capacity utilization and durable goods orders.

The Infrastructure Sector's results for the third quarter are a reflection of 
declining demand from the company's distribution channel. Equipment dealers are 
protecting their cash flow by aggressively managing inventory and retail sales 
for the last three weeks of September fell off dramatically compared to original
expectations. Demand from rental companies, which are major customers of the 
Infrastructure businesses, remains 70% to 80% below prior year levels.

The Security and Safety Sector was the strongest performer as revenues were off 
only slightly compared to the prior year. However, end-user demand in both the 
retail and commercial distribution channels fell in the last three weeks of the 
quarter.


2001 Full Year Outlook

"Diluted EPS for 2001 is forecast to be in the range of $2.00 to $2.25, 
excluding charges related to restructuring," said Herbert L. Henkel, chairman, 
president and chief executive officer. "Ongoing demand continues to be very 
uncertain, especially in the U.S. market. Our earnings estimate reflects an 
increasing concern about the direction of the global economy. Fourth quarter 
results include normal seasonal improvement in Hussmann and Dresser-Rand."

Third Quarter Earnings Call

IR will announce third quarter earnings on Thursday, October 18, 2001, at 7:00 
a.m. Eastern Standard Time. Later that day, IR win host an analyst and investor 
teleconference at 11:00 a.m.



IR is a leading innovation and solutions provider for the major global markets 
of Security and Safety, Climate Control, Industrial Productivity and 
Infrastructure. The company's diverse product portfolio encompasses such leading
industrial and commercial brands as Schlage locks and security solutions; Thermo
King transport temperature control equipment; Hussmann commercial and retail 
refrigeration equipment; Bobcat compact equipment; Club Car golf cars and 
utility vehicles; Torrington bearings and components; Powerworks microturbines; 
and Ingersoll-Rand industrial and construction equipment. In addition, IR offers
products and services under many more premium brands for customers in industrial
and commercial markets. Further information on IR can be found on the company's 
web site at www.irco.com.

This news release includes "forward-looking statements" that involve risks and 
uncertainties. Political, economic, climatic, currency, tax, regulatory, 
technological, competitive and other factors could cause actual results to 
differ materially from those anticipated in the forward-looking statements. 
Additional information regarding these risk factors and uncertainties is 
detailed from time to time in the company's SEC filings, including but not 
limited to its report on Form 10-Q for the three months ended June 30, 2001.

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