Industrial goods manufacturer Ingersoll-Rand Plc IR reported strong first-quarter 2016 results with an improved operating performance that offset expected headwinds in the global economic environment. The company reported first-quarter 2016 net earnings of $152.4 million or 58 cents per share compared with $51.3 million or 19 cents per share in the year-earlier quarter. The year-over-year increase in GAAP earnings was primarily attributable to the decrease in operating expenses during the reported quarter. Excluding non-recurring items, adjusted earnings from continuing operations for the reported quarter were 50 cents per share compared with 38 cents in the year-ago quarter. Adjusted earnings from continuing operations comprehensively beat the Zacks Consensus Estimate by 13 cents. Quarterly revenues of $2,894 million exceeded the Zacks Consensus Estimate of $2,888 million and were up 0.2% year over year. Organic revenues (excluding acquisitions and currency) were up 2% year over year. While organic revenues from the U.S. increased 3%, International segment organic revenues improved 1% compared with the year-ago period. Segment PerformanceClimate segment delivered sales of approximately $2,214 million in first-quarter 2016 compared with $2,159 million in the year-ago quarter. The year-over-year increase was driven by low mid-single digit percentage increase in commercial HVAC (heating, ventilation and air conditioning) revenues.Industrial segment posted revenues of $681 million in the reported quarter, down 7% year over year. Organic revenues for compression-related products were down low single digits, while industrial products fell to the mid teens due to a 50% decline in material handling equipment, partially offset by Club Car which was up slightly due to growth in golf cars and aftermarket parts.MarginsOperating margin for the first quarter of 2016 was 7.5% compared with 5.9% in the year-ago quarter. Adjusted operating margin expanded to 7.8% from 6.4% in the prior-year period. Adjusted operating margin for the Climate segment was 9.8% in the reported quarter compared with 7% in the year-ago quarter due to higher volumes, productivity gains, pricing, mix and material deflation, partially offset by other inflation and negative currency impacts. Adjusted operating margin for the Industrial segment was 9.6%, down from 11.9% in the year-ago quarter due to currency woes and lower volumes.Balance Sheet and Cash Flow As of Mar 31, 2016, cash and cash equivalents aggregated $612.9 million, while long-term debt was $3,714.6 million. Net cash utilization in operating activities was $12 million compared with $125.2 million in the prior-year period. Capital expenditure decreased to $40.1 million from $55.7 million. Working capital was 6.2% of revenues at the end of the reported quarter compared with 6.3% in the year-earlier quarter.During the reported quarter, the company repurchased approximately 4.9 million shares for approximately $250 million. Subsequent to first-quarter end, Ingersoll sold its remaining shares in Hussmann Parent, Inc. as Panasonic Corporation acquired 100% of Hussmann’s shares for approximately $415 million. OutlookFor 2016, management expects slow-to-moderate growth in the global construction and retrofit markets, and recovering but slow industrial market growth. The company expects organic revenues to increase by 2–4% year over year while reported revenues are expected to be flat to up 2% year over year. Ingersoll updated its adjusted earnings from continuing operations guidance to $3.95 to $4.10 from $3.80 and $4.00 per share. Reported earnings from continuing operations for 2016 are expected to be in the range of $5.39 to $5.54 per share. Adjusted free cash flow for the year is expected to be $950 million to $1 billion. For second-quarter 2016, Ingersoll projects organic revenues to increase by 4% to 6% year over year, while reported revenues are expected to be up 2% to 4% year over year. Adjusted earnings from continuing operations are expected to be in the range of $1.27 to $1.32 per share, with reported earnings in the range of $2.75 to $2.80. Ingersoll currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Sun Hydraulics Corp. SNHY, EnPro Industries, Inc. NPO and Luxfer Holdings PLC LXFR, each carrying a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report INGERSOLL RAND (IR): Free Stock Analysis Report SUN HYDRAULICS (SNHY): Free Stock Analysis Report ENPRO INDUS INC (NPO): Free Stock Analysis Report LUXFER HOLDINGS (LXFR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research