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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 14, 2004
ITT INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Indiana 1-5627 13-5158950
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
4 West Red Oak Lane
White Plains, New York 10604
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code: (914) 641-2000
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (See General Instruction A.2. below):
[_] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[_] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[_] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Not Applicable
(Former name or former address, if changed since last report)
ITEM 7.01. Regulation FD Disclosure
The following information is furnished pursuant to Item 7.01 Regulation FD
Disclosure. This information shall not be deemed filed for purposes of Section
18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or
incorporated by reference into any filing under the Securities Act of 1933, as
amended, or the Exchange Act, except as shall be expressly set forth by specific
reference in such filing.
On December 14, 2004 ITT Industries, Inc. issued a press release providing its
2005 financial outlook. This press release is attached and incorporated by
reference herein as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
99.1 Press release issued December 14, 2004.
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ITT INDUSTRIES, INC.
By: /s/ Kathleen S. Stolar
------------------------------
Kathleen S. Stolar
Its: Vice President, Secretary
and Associate General Counsel
Date: December 14, 2004
3
Exhibit 99.1
ITT Industries Provides Positive 2005 Financial Outlook
* Strong organic revenue, earnings growth trend seen continuing in 2005
* FY 2005 EPS forecast of $5.00 - $5.15 on revenue of $7.2 - $7.4 billion
* Company reaffirms previous FY 2004 earnings guidance
WHITE PLAINS, N.Y., Dec. 14 /PRNewswire-FirstCall/ -- ITT Industries, Inc.
(NYSE: ITT) said today that solid growth in its core businesses and improved
operating performance in 2004 set the stage for continued positive momentum
within each of its four business segments in the coming year. The company
said that it expects to extend its track record of double-digit earnings
growth in 2005, forecasting full year 2005 earnings per share between $5.00
and $5.15.
"We're certainly pleased with the double digit organic revenue and
earnings growth we've realized so far in 2004, reflecting the strength of our
portfolio and the soundness of the ITT management system," said Steve
Loranger, Chairman, President and Chief Executive Officer of ITT Industries.
"We expect continued growth in 2005 due to favorable catalysts within our
Fluid Technology and Defense segments adding to the benefit of the recently
acquired businesses in our Space and Water units, and continued margin
expansion from improved performance in Fluid Technology, Motion & Flow Control
and Electronic Components."
"Our positive outlook is largely due to the momentum being generated by
our ITT Management System, which includes our Value-Based Six Sigma and a
number of other improvement tools," Loranger said. "Our projected 11 - 14
percent earnings growth in 2005 includes an anticipated $0.18 - $0.26 per
share headwind from pension and healthcare costs. Our ability to grow
earnings in the face of these headwinds is a testament to the strength of our
strong management team and our attractive portfolio of businesses."
Loranger reaffirmed ITT's previous full year 2004 earnings guidance at the
top end of the $4.45-$4.50 range, on expected revenues of $6.65 - $6.75
billion, with cash performance consistent with prior guidance.
"We will enter 2005 with clear goals and objectives in terms of our key
strategies of growth, operational excellence and leadership development. We
believe we are positioned to grow revenues 6 - 12 percent to $7.2 to $7.4
billion, continue growing operating margin and cash flow, and anticipate a
2005 EPS of $5.00 - $5.15."
2005 Segment Forecast
Fluid Technology
The water/wastewater businesses are expected to lead improvement in Fluid
Technology in 2005, with ITT's expanded product offering and market
fundamentals enabling revenue growth in this segment of 2 - 7 percent to $2.65
- - 2.75 billion for the year. The company expects revenues in the
water/wastewater businesses to grow 10 percent, continuing a recent up-tick in
order activity especially in the Advanced Water Treatment unit. Operating
margin is expected to grow 70 to 120 basis points as the company progresses
with integration of the recently acquired WEDECO Water Technology business,
and through continued focus on operational excellence in the rest of the
business. Increasing capacity utilization and a favorable dollar exchange
rate provides a positive backdrop for the company's industrial products group.
Defense Electronics & Services
The company's Defense Electronics & Services business is expected to
extend its growth trend in 2005, due in part to increased order activity in
its operations support and technical services businesses, and through
increased demand for its SINCGARS radios and Night Vision equipment. The
company also expects further growth in its other government-related businesses
such as the Space Systems division, bolstered with the recent acquisition of
Kodak's Remote Sensing unit, positioning ITT to benefit from the growing
importance of space imaging. Overall, the company anticipates 2005 Defense
segment revenue growth of 15 - 21 percent to $2.75 - $2.85 billion, with
operating margins at 10 - 10.2 percent.
Motion & Flow Control
New product offerings in Leisure Marine, Friction Materials and the tubing
business, and gains from operational improvements are expected to continue in
the Motion & Flow Control segment in 2005. The company anticipates 2005
revenues of $1.05 - $1.1 billion, representing zero to 6 percent growth over
2004 segment revenues. An improved cost position through production in low
cost areas and lean manufacturing initiatives are expected to improve the
segment's operating margins from 20 to 80 basis points for 2005.
Electronic Components
The Electronic Components segment is expected to see continued improvement
resulting from recent portfolio refinement initiatives and the recovery of key
end markets in the year ahead. Full year 2005 revenues are expected to grow 1
to 6 percent to $700 - $725 million, with growth from increased contribution
from new products partially offset by the impact of the business' strategy to
prune non-core product lines. Manufacturing realignment and a renewed focus
on core products and customers, primarily in the keypad business, are expected
to contribute to a 2005 segment margin expansion of 160 -270 basis points.
About ITT Industries
ITT Industries, Inc. (http://www.itt.com) is a $6 billion global multi-
industry company based in White Plains, NY. ITTsupplies advanced technology
products and services in key markets including: fluid and water management
including water treatment; defense communication, opto-electronics,
information technology and services; electronic interconnects and switches;
and other specialty products. In addition to the New York Stock Exchange, ITT
Industries stock is traded on the Midwest, Pacific, London, Paris and
Frankfurt exchanges.
NOTE: ITT Industries believes that investors' understanding of the
company's operating performance is enhanced by the use of certain non-GAAP
financial measures. Management believes that investors can better analyze the
company's revenue growth by utilizing an organic revenue growth measure that
excludes the effect of foreign exchange translation and the effect of recent
acquisitions. Organic revenue is not a financial measure under GAAP, should
not be considered as substitute for revenue as defined by GAAP, and may not be
comparable to similarly titled measures reported by other companies.
Certain material presented herein consists of forward-looking statements
which involve known and unknown risks, uncertainties and other important
factors that could cause actual results to differ materially from those
expressed in, or implied from, such forward-looking statements. Such factors
include general economic conditions, foreign currency exchange rates,
competition and other factors all as more thoroughly set forth in Item 1.
Business and Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations - Forward-Looking Statements in the ITT
Industries, Inc. Form 10-K Annual Report for the fiscal year ended December
31, 2003, and other of its filings with the Securities and Exchange
Commission.
SOURCE ITT Industries, Inc.
-0- 12/14/2004
/CONTACT: Tom Glover of ITT Industries, Inc., +1-914-641-2160,
tom.glover@itt.com /
/Web site: http://www.itt.com /
(ITT)
CO: ITT Industries, Inc.
ST: New York
IN: CPR ENV CHM ARO
SU: ERP