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): April 27, 2007
ITT
CORPORATION
(Exact
name of registrant as specified in its charter)
|
Indiana
|
1-5672
|
13-5158950
|
|
(State
or other jurisdiction
of
incorporation)
|
(Commission
File
Number)
|
(I.R.S.
Employer
Identification
No.)
|
|
4
West Red Oak Lane
White
Plains, New York
|
10604
|
|
(Address
of principal
executive
offices)
|
(Zip
Code)
|
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):
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
|
|
o
|
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 2.02 Results of Operations and Financial Condition
Item
7.01 Regulation
FD Disclosure
Attached
hereto as Exhibit 99.1 and incorporated by reference herein is information
on
the results of operations for ITT Corporation for the first quarter 2007 and
the
Company’s increased fiscal year 2007 earnings per share and revenue guidance and
other forward-looking statements relating to 2007 as presented in a press
release dated April 27, 2007. 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.
A
copy of
this press release is attached and incorporated by reference herein as Exhibit
99.1.
Item
9.01. Financial
Statements and Exhibits
(d)
Exhibits
99.1
Press release dated April 27, 2007.
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
CORPORATION
|
||
|
By:
|
/s/
Kathleen S.
Stolar
|
|
| Kathleen S. Stolar | ||
|
Its:
|
Vice
President, Secretary and
Associate General Counsel
|
|
|
Date:
April 27, 2007
|
||
3
 |
ITT
Corporation
tel
914
641 2000
fax
914
696 2977
|
|
Press
Release
|
Contact:
Angela
Buonocore
(914)
641-2157
ITT
Reports Strong First Quarter 2007 EPS from Continuing
Operations
of $0.74; Raises Guidance for the Year
|
·
|
Earnings
from continuing operations, excluding special items, are $0.76 per
share,
up 29 percent
|
|
·
|
First
quarter revenue up 15.6 percent to $2.1 billion on strong growth
in all
segments; organic revenue up 12.5
percent
|
|
·
|
Company
raises FY 2007 earnings forecast, excluding special items, from
$3.30-$3.38 to $3.44-$3.50 per share and raises FY 2007 revenue range
from
$8.29-$8.38 billion to $8.45-$8.55
billion
|
White
Plains, New York, April 27, 2007 -
ITT
Corporation (NYSE:ITT) today reported first quarter 2007 earnings from
continuing operations of $139.8 million or $0.76 per share, excluding special
items. This represents an increase of 29 percent or $0.17 over the first quarter
of 2006 on a comparable basis. First quarter revenue was $2.1 billion, up 15.6
percent over the same period last year, with organic revenue growth of 12.5
percent.
“We
are
off to a powerful start this year, with every segment of our business delivering
outstanding top line performance that carried through to the bottom line,” said
Steve Loranger, Chairman, President and Chief Executive Officer. “Building
relationships with our customers by providing high-quality products and service
solutions is central to our continuing progress - and it’s evident our teams
have been successful in doing just that.”
Mr.
Loranger added, “Diversification is a critical part of our performance, both
from an end market perspective and from the variety of geographies in which
we
operate. And most importantly, our very capable workforce of extremely dedicated
employees is committed to growing this business. Their focus on both organic
growth and operational excellence has resulted in solid business performance,
quarter in and quarter out. Based on these strong first quarter results, and
our
confidence in our outlook, we are raising our full-year revenue and earnings
guidance.”
ITT
now
forecasts full-year 2007 revenue of approximately $8.5 billion, an increase
of
$170 million compared with the estimates given in December 2006. This new
estimate represents year-over-year revenue growth of nine percent. In addition,
the Company revised its full-year forecast for earnings from continuing
operations, excluding special items, to be in the range of $3.44 to $3.50 per
share, up 21 percent to 23 percent compared to full-year 2006.
Primary
Business Results
Fluid
Technology
|
·
|
First
quarter 2007 Fluid Technology revenue was $786.0 million, up $100.3
million or 15 percent over the comparable 2006 quarter. First quarter
organic revenue grew nine percent over the same period in 2006, through
our strong penetration in the commercial, industrial and municipal
markets
with Fluid Technology’s full portfolio of water products and solutions.
|
|
·
|
Operating
income for the first quarter was $87.1 million, including the impact
of
restructuring. Excluding restructuring, operating income was $90.6
million, a gain of 35 percent over the first quarter of 2006. Operating
margins grew by 170 basis points, to 11.5 percent, primarily as a
result
of volume increases and a continuing focus on operational initiatives
(such as global sourcing), efforts to “rightsize” our manufacturing
facilities to meet customer needs, and finding cost efficiencies
and
eliminating waste.
|
|
·
|
Order
activity was strong, with total organic orders up 11 percent compared
to
the first quarter of 2006. Both industrial and municipal markets
posted
double-digit growth.
|
Defense
Electronics & Services
|
·
|
ITT’s
Defense Electronics & Services segment reported first quarter 2007
revenues of $969.4 million, up 17 percent over the same period last
year,
led by increases in Night Vision, Electronic Systems and the Advanced
Engineering and Sciences
businesses.
|
|
·
|
Revenue
growth was well balanced between products and services.
|
|
·
|
Higher
volume, better yields and contract performance drove first quarter
operating results. First quarter operating income was $110.4 million,
including the impact of restructuring. Excluding this impact, operating
income was $112.5 million, a gain of 15 percent compared to the first
quarter of 2006.
|
Motion
and Flow Control
|
·
|
First
quarter revenues were $318.2 million, up 14 percent over the same
quarter
in 2006. Organic revenue growth was up nine percent, lifted by
double-digit growth in the connectors and friction materials
businesses.
|
|
·
|
Operating
income for the 2007 first quarter was $51.0 million, including the
impact
of restructuring. Excluding restructuring, operating income was $51.8
million, an increase of 19 percent. Operating margin reflected a
70-basis
point improvement to 16.3 percent versus first quarter 2006 results,
due
to volume growth and ongoing productivity and efficiency efforts.
|
|
·
|
The
friction materials business also posted double-digit revenue growth,
as a
result of strong automotive platform wins.
|
|
·
|
The
connectors business was fueled by end-market strength in the aerospace
and
industrial markets and posted double-digit organic
growth.
|
About
ITT Corporation
ITT
Corporation (www.itt.com)
supplies advanced technology products and services in several growth markets.
ITT is a global leader in the transport, treatment and control of water,
wastewater and other fluids. The company plays a vital role in international
security through its defense communications and electronics products; space
surveillance and intelligence systems; and advanced engineering and related
services. It also serves the growing leisure marine and electrical connectors
markets with a wide range of products. Headquartered in White Plains, N.Y.,
the
company generated $7.8 billion in 2006 sales. In addition to the New York Stock
Exchange, ITT Corporation stock is traded on the Euronext, London and Frankfurt
exchanges.
For
free
B-roll/video content and logo from ITT Corporation, please log onto
www.thenewsmarket.com/ITT
to
preview and request video. You can receive broadcast-standard video quality
digitally or by tape from this site. Registration and video are free to the
media.
“Safe
Harbor Statement” under the Private Securities Litigation Reform Act of 1995
(“the Act”):
Certain
material presented herein includes forward-looking statements intended to
qualify for the safe harbor from liability established by the Act. These
forward-looking statements include statements that describe the Company’s
business strategy, outlook, objectives, plans, intentions or goals, and any
discussion of future operating or financial performance. Whenever
used, words such as "anticipate," "estimate," "expect," "project," "intend,"
"plan," "believe," "target" and other terms of similar meaning are intended
to
identify such forward-looking statements. Forward-looking
statements are uncertain and to some extent unpredictable, and 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. Factors that could cause results to differ
materially from those anticipated by the Company include general global economic
conditions, decline in consumer spending, interest and foreign currency exchange
rate fluctuations, availability of commodities, supplies and raw materials,
competition, acquisitions or divestitures, changes in government defense
budgets, employment and pension matters, contingencies related to actual or
alleged environmental contamination, claims and concerns, intellectual property
matters, personal injury claims, governmental investigations, tax obligations,
and changes in generally accepted accounting principles. Other factors are
more
thoroughly set forth in Item 1. Business, Item 1A. Risk Factors, and Item 7.
Management's Discussion and Analysis of Financial Condition and Results of
Operations - Forward-Looking Statements in the ITT Corporation Annual Report
on
Form 10-K for the fiscal year ended December 31, 2006, and other of its filings
with the Securities and Exchange Commission. The Company undertakes no
obligation to update any forward-looking statements, whether as a result of
new
information, future events or otherwise.
ITT
believes that investors’ understanding of the Company’s operating performance is
enhanced by the use of certain non-GAAP financial measures, including adjusted
GAAP net income and adjusted GAAP EPS, which Management considers useful in
providing insight into operating performance, as it excludes the impact of
special items that cannot be expected to recur on a quarterly basis. Management
also believes that investors can better analyze the Company’s revenue and order
growth by utilizing organic revenue and organic order growth measures that
exclude the effect of foreign exchange translation and the effect of recent
acquisitions. In addition, Management considers the use of free cash flow to
be
an important indication of the Company’s ability to make acquisitions, fund
pension obligations, buy back outstanding shares and service debt. Free cash
flow, adjusted net income, adjusted EPS, organic revenue and organic orders
are
not financial measures under GAAP, should not be considered as substitutes
for
cash from operating activities, EPS, net income or revenue as defined by GAAP,
and may not be comparable to similarly titled measures reported by other
companies. A reconciliation to the GAAP equivalents of these non-GAAP measures
is set forth in the attached unaudited financial information.
###
ITT
CORPORATION
AND SUBSIDIARIES
CONSOLIDATED
CONDENSED INCOME STATEMENTS
(In
millions, except per share)
(Unaudited)
|
Three
Months Ended
|
|||||||
|
March
31,
|
|||||||
|
|
2007
|
2006
|
|||||
|
Sales
and revenues
|
$
|
2,070.3
|
$
|
1,791.5
|
|||
|
Costs
of sales and revenues
|
1,486.1
|
1,308.7
|
|||||
|
Selling,
general and administrative expenses
|
320.0
|
263.1
|
|||||
|
Research
and development expenses
|
40.3
|
38.6
|
|||||
|
Restructuring
and asset impairment charges, net
|
6.4
|
11.9
|
|||||
|
Total
costs and expenses
|
1,852.8
|
1,622.3
|
|||||
|
Operating
income
|
217.5
|
169.2
|
|||||
|
Interest
expense
|
23.8
|
19.9
|
|||||
|
Interest
income
|
8.2
|
3.7
|
|||||
|
Miscellaneous
expense, net
|
3.9
|
5.2
|
|||||
|
Income
from continuing operations before
income
tax expense
|
198.0
|
147.8
|
|||||
|
Income
tax expense
|
61.2
|
44.9
|
|||||
|
Income
from continuing operations
|
136.8
|
102.9
|
|||||
|
Discontinued
operations, net of tax
|
3.2
|
53.0
|
|||||
|
Net
income
|
$
|
140.0
|
$
|
155.9
|
|||
|
Earnings
Per Share:
|
|||||||
|
Income
from continuing operations:
|
|||||||
|
Basic
|
$
|
0.75
|
$
|
0.56
|
|||
|
Diluted
|
$
|
0.74
|
$
|
0.55
|
|||
|
Discontinued
operations:
|
|||||||
|
Basic
|
$
|
0.02
|
$
|
0.29
|
|||
|
Diluted
|
$
|
0.02
|
$
|
0.28
|
|||
|
Net
income:
|
|||||||
|
Basic
|
$
|
0.77
|
$
|
0.85
|
|||
|
Diluted
|
$
|
0.76
|
$
|
0.83
|
|||
|
Average
Common Shares — Basic
|
181.2
|
184.6
|
|||||
|
Average
Common Shares — Diluted
|
184.3
|
187.8
|
|||||
ITT
CORPORATION
AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(In
millions)
(Unaudited)
|
|
March
31,
|
December
31,
|
|||||
|
|
2007
|
2006
|
|||||
|
|
|||||||
|
Assets
|
|||||||
|
Current
Assets:
|
|||||||
|
Cash
and cash equivalents
|
$
|
1,050.2
|
$
|
937.1
|
|||
|
Receivables,
net
|
1,348.5
|
1,288.9
|
|||||
|
Inventories,
net
|
761.9
|
726.5
|
|||||
|
Assets
of discontinued businesses held for sale
|
184.9
|
183.2
|
|||||
|
Deferred
income taxes
|
83.4
|
79.8
|
|||||
|
Other
current assets
|
136.9
|
102.8
|
|||||
|
Total
current assets
|
3,565.8
|
3,318.3
|
|||||
|
|
|||||||
|
Plant,
property and equipment, net
|
822.1
|
833.0
|
|||||
|
Deferred
income taxes
|
163.1
|
136.1
|
|||||
|
Goodwill,
net
|
2,338.4
|
2,336.8
|
|||||
|
Other
intangible assets, net
|
206.2
|
213.2
|
|||||
|
Other
assets
|
633.7
|
563.2
|
|||||
|
Total
assets
|
$
|
7,729.3
|
$
|
7,400.6
|
|||
|
Liabilities
and Shareholders' Equity
|
|||||||
|
Current
Liabilities:
|
|||||||
|
Accounts
payable
|
$
|
953.1
|
$
|
929.4
|
|||
|
Accrued
expenses
|
799.7
|
869.6
|
|||||
|
Accrued
taxes
|
194.2
|
168.2
|
|||||
|
Notes
payable and current maturities of long-term debt
|
914.6
|
597.0
|
|||||
|
Pension
and postretirement benefits
|
68.9
|
68.9
|
|||||
|
Liabilities
of discontinued businesses held for sale
|
98.8
|
96.7
|
|||||
|
Deferred
income taxes
|
—
|
0.2
|
|||||
|
Total
current liabilities
|
3,029.3
|
2,730.0
|
|||||
|
Pension
and postretirement benefits
|
718.2
|
735.5
|
|||||
|
Long-term
debt
|
486.6
|
500.4
|
|||||
|
Other
liabilities
|
588.9
|
569.9
|
|||||
|
Total
liabilities
|
4,823.0
|
4,535.8
|
|||||
|
Shareholders'
equity
|
2,906.3
|
2,864.8
|
|||||
|
Total
liabilities and shareholders' equity
|
$
|
7,729.3
|
$
|
7,400.6
|
|||
ITT
CORPORATION
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In
millions)
(Unaudited)
|
Three
Months Ended
|
|||||||
|
|
March
31,
|
||||||
|
|
2007
|
2006
|
|||||
| Operating Activities | |||||||
|
Net
income
|
$
|
140.0
|
$
|
155.9
|
|||
|
Less:
Income from discontinued operations
|
(3.2
|
)
|
(53.0
|
)
|
|||
|
Income
from continuing operations
|
136.8
|
102.9
|
|||||
|
Adjustments
to income from continuing operations:
|
|||||||
|
Depreciation
and amortization
|
44.2
|
42.3
|
|||||
|
Stock-based
compensation
|
7.5
|
4.3
|
|||||
|
Restructuring
and asset impairment charges, net
|
6.4
|
11.9
|
|||||
|
Payments
for restructuring
|
(11.2
|
)
|
(15.2
|
)
|
|||
|
Change
in receivables
|
(54.7
|
)
|
(42.6
|
)
|
|||
|
Change
in inventories
|
(34.4
|
)
|
(43.8
|
)
|
|||
|
Change
in accounts payable and accrued expenses
|
0.1
|
28.1
|
|||||
|
Change
in accrued and deferred taxes
|
1.6
|
(28.8
|
)
|
||||
|
Change
in other current and non-current assets
|
(89.1
|
)
|
(113.1
|
)
|
|||
|
Change
in other non-current liabilities
|
(13.7
|
)
|
(6.8
|
)
|
|||
|
Other,
net
|
5.8
|
9.8
|
|||||
|
Net
cash — operating activities
|
(0.7
|
)
|
(51.0
|
)
|
|||
| Investing Activities | |||||||
|
Additions
to plant, property and equipment
|
(28.1
|
)
|
(28.4
|
)
|
|||
|
Acquisitions,
net of cash acquired
|
(4.4
|
)
|
(23.7
|
)
|
|||
|
Proceeds
from sale of assets and businesses
|
1.0
|
225.3
|
|||||
|
Other,
net
|
(0.4
|
)
|
(1.7
|
)
|
|||
|
Net
cash — investing activities
|
(31.9
|
)
|
171.5
|
||||
| Financing Activities | |||||||
|
Short-term
debt, net
|
305.6
|
67.3
|
|||||
|
Long-term
debt repaid
|
(1.7
|
)
|
(0.5
|
)
|
|||
|
Long-term
debt issued
|
0.3
|
—
|
|||||
|
Repurchase
of common stock
|
(186.5
|
)
|
(68.8
|
)
|
|||
|
Proceeds
from issuance of common stock
|
31.3
|
36.9
|
|||||
|
Dividends
paid
|
(20.3
|
)
|
(16.6
|
)
|
|||
|
Tax
benefit from stock option exercises
|
7.3
|
7.4
|
|||||
|
Other,
net
|
(0.3
|
)
|
0.1
|
||||
|
Net
cash — financing activities
|
135.7
|
25.8
|
|||||
|
Exchange
Rate Effects on Cash and Cash Equivalents
|
7.3
|
6.7
|
|||||
|
Net
Cash — Discontinued Operations:
|
|||||||
|
Operating
Activities
|
5.0
|
23.6
|
|||||
|
Investing
Activities
|
(2.3
|
)
|
(3.4
|
)
|
|||
|
Financing
Activities
|
—
|
(0.4
|
)
|
||||
|
Net
change in cash and cash equivalents
|
113.1
|
172.8
|
|||||
|
Cash
and cash equivalents — beginning of year
|
937.1
|
451.0
|
|||||
|
Cash
and Cash Equivalents — end of period
|
$
|
1,050.2
|
$
|
623.8
|
|||
|
ITT
Corporation Non-GAAP Reconciliation
|
||||||||||||||||||||||
|
Reported
vs. Organic Revenue / Orders Growth
|
||||||||||||||||||||||
|
First
Quarter 2007 & 2006
|
||||||||||||||||||||||
|
($
Millions)
|
|
(As
Reported - GAAP)
|
(As
Adjusted - Organic)
|
|||||||||||||||||||||||||||||||||
Sales
& Revenues
3M
2007
|
|
Sales
& Revenues
3M
2006
|
|
Change
2007
vs. 2006
|
|
%
Change
2007
vs. 2006
|
|
Sales
& Revenues
3M
2007
|
|
Acquisition
Contribution
3M
2007
|
|
FX
Contribution
3M
2007
|
|
Adj.
Sales & Revenues
3M
2007
|
|
Sales
& Revenues
3M
2006
|
|
Change
Adj.
07
vs.
06
|
|
%
Change
Adj.
07
vs.
06
|
||||||||||||||
|
ITT
Corporation -
Consolidated
|
2,070.3
|
1,791.5
|
278.8
|
15.6
|
%
|
2,070.3
|
(15.2
|
)
|
(39.1
|
)
|
2,016.0
|
1,791.5
|
224.5
|
12.5
|
%
|
|||||||||||||||||||
|
Defense
Electronics
&
Services
|
969.4
|
831.1
|
138.3
|
16.6
|
%
|
969.4
|
(0.8
|
)
|
(0.1
|
)
|
968.5
|
831.1
|
137.4
|
16.5
|
%
|
|||||||||||||||||||
|
ACD
- Tactical Radios
|
181.4
|
184.1
|
(2.7
|
)
|
-1.5
|
%
|
181.4
|
(0.8
|
)
|
0.0
|
180.6
|
184.1
|
(3.5
|
)
|
-1.9
|
%
|
||||||||||||||||||
|
Space
Systems
|
141.6
|
134.6
|
7.0
|
5.2
|
%
|
141.6
|
0.0
|
(0.1
|
)
|
141.5
|
134.6
|
6.9
|
5.1
|
%
|
||||||||||||||||||||
|
Advanced
Engineering
&
Sciences
|
105.0
|
78.7
|
26.3
|
33.4
|
%
|
105.0
|
0.0
|
0.0
|
105.0
|
78.7
|
26.3
|
33.4
|
%
|
|||||||||||||||||||||
|
Electronic
Systems
|
106.0
|
79.6
|
26.4
|
33.2
|
%
|
106.0
|
0.0
|
0.0
|
106.0
|
79.6
|
26.4
|
33.2
|
%
|
|||||||||||||||||||||
|
Night
Vision
|
121.1
|
77.1
|
44.0
|
57.1
|
%
|
121.1
|
0.0
|
0.0
|
121.1
|
77.1
|
44.0
|
57.1
|
%
|
|||||||||||||||||||||
|
Systems
|
317.1
|
278.0
|
39.1
|
14.1
|
%
|
317.1
|
0.0
|
0.0
|
317.1
|
278.0
|
39.1
|
14.1
|
%
|
|||||||||||||||||||||
|
Fluid
Technology
|
786.0
|
685.7
|
100.3
|
14.6
|
%
|
786.0
|
(13.8
|
)
|
(24.4
|
)
|
747.8
|
685.7
|
62.1
|
9.1
|
%
|
|||||||||||||||||||
|
Industrial
& BioPharm
|
162.1
|
146.9
|
15.2
|
10.3
|
%
|
162.1
|
0.0
|
(1.0
|
)
|
161.1
|
146.9
|
14.2
|
9.7
|
%
|
||||||||||||||||||||
|
Wastewater
|
306.1
|
246.3
|
59.8
|
24.3
|
%
|
306.1
|
0.0
|
(15.1
|
)
|
291.0
|
246.3
|
44.7
|
18.1
|
%
|
||||||||||||||||||||
|
Advanced
Water Treatment
|
61.1
|
52.2
|
8.9
|
17.0
|
%
|
61.1
|
(13.3
|
)
|
(2.6
|
)
|
45.2
|
52.2
|
(7.0
|
)
|
-13.4
|
%
|
||||||||||||||||||
|
Residential
and Commercial
Water
Group
|
266.2
|
246.8
|
19.4
|
7.9
|
%
|
266.2
|
(0.5
|
)
|
(6.2
|
)
|
259.5
|
246.8
|
12.7
|
5.1
|
%
|
|||||||||||||||||||
|
Motion
& Flow Control
|
318.2
|
278.2
|
40.0
|
14.4
|
%
|
318.2
|
(0.6
|
)
|
(14.6
|
)
|
303.0
|
278.2
|
24.8
|
8.9
|
%
|
|||||||||||||||||||
|
Aerospace
Controls
|
23.5
|
21.4
|
2.1
|
9.8
|
%
|
23.5
|
(0.6
|
)
|
0.0
|
22.9
|
21.4
|
1.5
|
7.0
|
%
|
||||||||||||||||||||
|
Marine
& Leisure
|
62.6
|
58.1
|
4.5
|
7.7
|
%
|
62.6
|
0.0
|
(2.5
|
)
|
60.1
|
58.1
|
2.0
|
3.4
|
%
|
||||||||||||||||||||
|
Friction
Materials
|
103.2
|
87.0
|
16.2
|
18.6
|
%
|
103.2
|
0.0
|
(7.8
|
)
|
95.4
|
87.0
|
8.4
|
9.7
|
%
|
||||||||||||||||||||
|
KONI
|
25.0
|
21.8
|
3.2
|
14.7
|
%
|
25.0
|
0.0
|
(1.5
|
)
|
23.5
|
21.8
|
1.7
|
7.8
|
%
|
||||||||||||||||||||
|
Connectors
|
104.0
|
89.9
|
14.1
|
15.7
|
%
|
104.0
|
0.0
|
(2.8
|
)
|
101.2
|
89.9
|
11.3
|
12.6
|
%
|
||||||||||||||||||||
|
Orders 3M
2007 |
|
Orders 3M
2006 |
|
Change 2007
vs. 2006 |
|
%
Change 2007
vs. 2006 |
|
Orders 3M
2007 |
|
Acquisition
Contribution 3M
2007 |
|
FX
Contribution 3M
2007 |
|
Adj.
Orders 3M
2007 |
|
Orders 3M
2006 |
|
Change Adj.
07 vs. 06 |
|
%
Change Adj.
07 vs. 06 |
||||||||||||||
|
Defense
Electronics & Services
|
803.3
|
1,213.6
|
(410.3
|
)
|
-34
|
%
|
803.3
|
(0.8
|
)
|
(0.1
|
)
|
802.4
|
1,213.6
|
(411.2
|
)
|
-33.9
|
%
|
|||||||||||||||||
|
Fluid
Technology
|
881.8
|
762.3
|
119.5
|
16
|
%
|
881.8
|
(9.3
|
)
|
(27.7
|
)
|
844.8
|
762.3
|
82.5
|
10.8
|
%
|
|||||||||||||||||||
|
Motion
& Flow Control
|
328.1
|
295.5
|
32.6
|
11
|
%
|
328.1
|
(0.9
|
)
|
(15.4
|
)
|
311.8
|
295.5
|
16.3
|
5.5
|
%
|
|||||||||||||||||||
|
Note:
Excludes intercompany
eliminations.
|
||||||||||||||||||||||||||||||||||
|
ITT
Corporation Non-GAAP Reconciliation
|
||||||||||||||||||||
|
Segment
Operating Income & OI Margin Adjusted for
Restructuring
|
||||||||||||||||||||
|
First
Quarter of 2007 & 2006
|
||||||||||||||||||||
|
|
||||||||||||||||||||
|
($
Millions)
|
Q1
2007
As
Reported
|
|
Q1
2006
As
Reported
|
|
%
Change
07 vs. 06
|
|
Q1
2007
As
Reported
|
|
Adjust
for 2007
Restructuring
|
|
Q1
2007
As
Adjusted
|
|
Q1
2006
As
Reported
|
|
Adjust
for 2006
Restructuring
|
|
Q1
2006
As
Adjusted
|
|
%
Change
Adj. 07
vs.
06
|
|
|||||||||||||||
|
Sales
and Revenues:
|
||||||||||||||||||||||||||||||||||
|
Defense
Electronics & Services
|
969.4
|
831.1
|
969.4
|
969.4
|
831.1
|
831.1
|
||||||||||||||||||||||||||||
|
Fluid
Technology
|
786.0
|
685.7
|
786.0
|
786.0
|
685.7
|
685.7
|
||||||||||||||||||||||||||||
|
Motion
& Flow Control
|
318.2
|
278.2
|
318.2
|
318.2
|
278.2
|
278.2
|
||||||||||||||||||||||||||||
|
Intersegment
eliminations
|
(3.3
|
)
|
(3.5
|
)
|
(3.3
|
)
|
(3.3
|
)
|
(3.5
|
)
|
(3.5
|
)
|
||||||||||||||||||||||
|
Total
Sales and Revenues
|
2,070.3
|
1,791.5
|
2,070.3
|
2,070.3
|
1,791.5
|
1,791.5
|
||||||||||||||||||||||||||||
|
Operating
Margin:
|
||||||||||||||||||||||||||||||||||
|
Defense
Electronics & Services
|
11.4
|
%
|
11.5
|
%
|
11.4
|
%
|
11.6
|
%
|
11.5
|
%
|
11.8
|
%
|
(20
|
)
|
BP
|
|||||||||||||||||||
|
Fluid
Technology
|
11.1
|
%
|
9.2
|
%
|
11.1
|
%
|
11.5
|
%
|
9.2
|
%
|
9.8
|
%
|
170
|
BP
|
||||||||||||||||||||
|
Motion
& Flow Control
|
16.0
|
%
|
13.5
|
%
|
16.0
|
%
|
16.3
|
%
|
13.5
|
%
|
15.6
|
%
|
70
|
BP
|
||||||||||||||||||||
|
Total
Ongoing Segments
|
12.0
|
%
|
11.0
|
%
|
12.0
|
%
|
12.3
|
%
|
11.0
|
%
|
11.6
|
%
|
70
|
BP
|
||||||||||||||||||||
|
Income:
|
||||||||||||||||||||||||||||||||||
|
Defense
Electronics & Services
|
110.4
|
95.8
|
15.2
|
%
|
110.4
|
2.1
|
112.5
|
95.8
|
2.0
|
97.8
|
15.0
|
%
|
||||||||||||||||||||||
|
Fluid
Technology
|
87.1
|
63.3
|
37.6
|
%
|
87.1
|
3.5
|
90.6
|
63.3
|
4.0
|
67.3
|
34.6
|
%
|
||||||||||||||||||||||
|
Motion
& Flow Control
|
51.0
|
37.6
|
35.6
|
%
|
51.0
|
0.8
|
51.8
|
37.6
|
5.8
|
43.4
|
19.4
|
%
|
||||||||||||||||||||||
|
Total
Segment Operating Income
|
248.5
|
196.7
|
26.3
|
%
|
248.5
|
6.4
|
254.9
|
196.7
|
11.8
|
208.5
|
22.3
|
%
|
||||||||||||||||||||||
|
ITT
Corporation Non-GAAP Reconciliation
|
|||||||||||||||||
|
Reported
vs. Adjusted Continuing Operations EPS
|
|||||||||||||||||
|
First
Quarter of 2007 & 2006
|
|||||||||||||||||
|
($
Millions, except EPS and
shares)
|
Q1
2007
As
Reported
|
Q1
2007
Adjustments
|
Q1
2007
As
Adjusted
|
Q1
2006
As
Reported
|
Q1
2006
Adjustments
|
Q1
2006
As
Adjusted
|
Change
2007
vs. 2006
As
Adjusted
|
Percent
Change
2007
vs. 2006
As
Adjusted
|
||||||||||||||||||||||||
|
Segment
Operating Income
|
248.5
|
6.4
|
#A
|
254.9
|
196.7
|
11.8
|
#D
|
208.5
|
|||||||||||||||||||||||
|
Interest
Income (Expense)
|
(15.6
|
)
|
-
|
(15.6
|
)
|
(16.2
|
)
|
-
|
(16.2
|
)
|
|||||||||||||||||||||
|
Other
Income (Expense)
|
(3.9
|
)
|
-
|
(3.9
|
)
|
(5.2
|
)
|
-
|
(5.2
|
)
|
|||||||||||||||||||||
|
Corporate
(Expense)
|
(31.0
|
)
|
-
|
(31.0
|
)
|
(27.5
|
)
|
0.1
|
#D
|
(27.4
|
)
|
||||||||||||||||||||
|
Income
from Continuing
Operations
before Tax
|
198.0
|
6.4
|
204.4
|
147.8
|
11.9
|
159.7
|
|||||||||||||||||||||||||
|
Income
Tax Items
|
1.4
|
(1.4
|
)
|
#B
|
-
|
0.5
|
#E
|
0.5
|
|||||||||||||||||||||||
|
Income
Tax Expense
|
(62.6
|
)
|
(2.0
|
)
|
#C
|
(64.6
|
)
|
(44.9
|
)
|
(3.6
|
)
|
#F
|
(48.5
|
)
|
|||||||||||||||||
|
Total
Tax Expense
|
(61.2
|
)
|
(3.4
|
)
|
(64.6
|
)
|
(44.9
|
)
|
(3.1
|
)
|
(48.0
|
)
|
|||||||||||||||||||
|
Income
from
Continuing
Operations
|
136.8
|
3.0
|
139.8
|
102.9
|
8.8
|
111.7
|
|||||||||||||||||||||||||
|
Diluted
EPS from
Continuing
Operations
|
0.74
|
0.02
|
0.76
|
0.55
|
0.04
|
0.59
|
$
|
0.17
|
28.8
|
%
|
|||||||||||||||||||||
|
#A
- Remove Restructuring Expense of $6.4M.
|
|
#B
- Remove Tax Benefit of ($1.4M).
|
|
#C
- Remove Tax Benefit on Special Items of ($2.0M).
|
|
#D
- Remove Restructuring Expense of $11.8M & $0.1M.
|
|
#E
- Remove Tax Charges $0.5M.
|
|
#F
- Remove Tax Benefit on Special Items of
($3.6M).
|
|
ITT
Corporation Non-GAAP Reconciliation
|
|||||||
|
Cash
From Operating Activities vs. Free Cash Flow
|
|||||||
|
First
Quarter of 2007 & 2006
|
|||||||
|
($
Millions)
|
|
1st
Qtr.07
|
|
1st
Qtr.06
|
|
||||
|
Cash
from Operations
|
(0.7
|
)
|
(51.0
|
)
|
|||
|
Capital
Expenditures
|
(28.1
|
)
|
(28.4
|
)
|
|||
|
Pension
Pre-funding, net of tax
|
50.0
|
100.0
|
|||||
|
Free
Cash Flow
|
21.2
|
20.6
|
|||||