Reuters: Diversified industrial company Ingersoll-Rand Plc said it has fully disclosed its limited sales in Iran, and that all of them took place through non-U.S. subsidiaries. NEW YORK, March 3 (Reuters) – Diversified industrial company Ingersoll-Rand Plc said it has fully disclosed its limited sales in Iran, and that all of them took place through non-U.S. subsidiaries.
Ingersoll's statement came amid pressure from a Washington-based group, United Against Nuclear Iran (UANI), which is pressuring global industrial companies to stop serving Iran's energy sector.
"We do have limited sales in Iran, all of which is through non-U.S. subsidiaries and in full compliance with U.S. laws relating to such business," Ingersoll said in a statement e-mailed to Reuters. "The sales amount to approximately 0.1 to 0.2 percent of overall revenues, and as such not material."
Ingersoll's 2009 revenue totaled about $13 billion. At that level, 0.1 percent is equal to about $13 million.
UANI sent a four-page letter on Tuesday to Ingersoll Chief Executive Mike Lamach detailing what it calls "extensive dealings" in Iran, which argues that conducting business in Iran violates the company's code of conduct.
At issue are air compressors used in industrial plants run by the state-owned National Iranian Oil Company, according to the letter. UANI says Ingersoll should cease doing business in Iran because of the country's alleged sponsorship of terrorism, pursuit of nuclear weapons, and human rights violations.
Included as addressees were the chief of the New York Stock Exchange, the head of the Securities and Exchange Commission and an official with the Treasury Department.
The letter urges the SEC and NYSE to investigate business practices, and vows to call on the NYSE to delist Ingersoll shares if the company continues operations in Iran.
FOLLOWS CATERPILLAR'S MOVE
General Electric Co, Huntsman Corp and Caterpillar Inc have agreed to sever ties with Iran, the letter said.
Caterpillar Inc earlier this week tightened its policy on not doing business with Iran to prevent foreign subsidiaries from selling equipment to independent dealers who then resell it to the Middle Eastern country, which is subject to extensive trade sanctions.
Existing U.S. law had allowed such third-party sales, which represented less than 0.2 percent of Caterpillar's $32.4 billion in 2009 revenue, the world's largest maker of construction and mining equipment said on Monday.
Ingersoll's response also noted that in the fourth quarter of 2008 the company provided the SEC's Office of Global Security Risk a complete report regarding foreign subsidiaries' sales to Iran.
"We are confident that this reflects adequate disclosure and transparency about the company's activities," the company said.
(Reporting by Nick Zieminski, editing by Dave Zimmerman )