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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): October 27, 2006
ITT CORPORATION
(Exact name of registrant as specified in its charter)
Indiana 1-5672 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))
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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 third
quarter 2006, the Company's increased fiscal year 2006 earnings per share from
continuing operations and revenue guidance and other forward-looking statements
relating to 2006 as presented in a press release dated October 27, 2006. 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 October 27, 2006.
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: October 27, 2006
3
Exhibit 99.1
ITT REPORTS THIRD QUARTER 2006 EPS OF $0.77; ANNOUNCES $1 BILLION SHARE
REPURCHASE PROGRAM; RAISES FULL-YEAR GUIDANCE FROM CONTINUING OPERATIONS
* Earnings per share up 15 percent excluding special items (up 18 percent
excluding SFAS-123R).
* Third quarter revenue up 15 percent to $2.0 billion on strong growth in
all segments; organic revenue up 13 percent; strong cash performance.
* Net impact of special items, including $0.03 per share results from
Switches business (moved to discontinued operations), is zero.
* ITT today announces a $1 billion share repurchase program.
* Company raises FY 2006 earnings guidance after adjusting for the impact
of moving the Switches business to discontinued operations.
WHITE PLAINS, N.Y., Oct. 27 /PRNewswire-FirstCall/ -- ITT Corporation (NYSE:
ITT) today reported third quarter 2006 net income of $143.5 million or $0.77 per
share. The net impact of special items, comprising restructuring, tax
settlements and discontinued operations, is zero. Excluding special items in
2005 and 2006, 2006 third quarter earnings from continuing operations grew 15
percent or $0.10 per share over the third quarter 2005. Excluding the $(0.02)
per share impact of the adoption of SFAS-123R, earnings for the quarter grew 18
percent compared to the third quarter of 2005. Third quarter 2006 revenue was
$2.0 billion, up 15 percent over the same period last year, with organic revenue
growth of 13 percent.
"We are very pleased with our performance in the third quarter, with solid
growth in organic revenue, earnings, and cash flow," said Steve Loranger,
Chairman, President and Chief Executive Officer. "Our management team is
continuing to deliver double-digit organic growth, reflecting the strength of
our market positions, our ongoing focus on new product development, a balanced
portfolio of businesses, and overall customer satisfaction."
"This revenue growth trend has continued now for several years, but we never
take it for granted," Loranger said. "We are constantly listening to our
customers and looking for new ways to anticipate their needs and deliver
reliable solutions. This is an integral part of the ITT Management System, and
our results this quarter and this year speak to its importance in the way we
manage the company."
2006 Outlook and Beyond
"We are very pleased with the strong performance we have seen this year,"
Loranger added. "We are raising our full-year earnings guidance as a result."
ITT now forecasts full year 2006 earnings from continuing operations, excluding
special items, will be in a range of $2.88 to $2.91 per share, up 13-14 percent
compared to full year 2005, including the estimated $(0.09) per share impact
from the adoption of SFAS-123R. Excluding the impact of the adoption of
SFAS-123R, the outlook for full year 2006 earnings from continuing operations
excluding special items would be up 16-17 percent. The new guidance reflects the
move of the Switches business, which is in the process of being sold, to
discontinued operations.
"Today we announced a $1 billion share repurchase program that is consistent
with ITT's commitment to a balanced and disciplined capital allocation process,"
said George E. Minnich, Senior Vice President and Chief Financial Officer. "Our
capital priorities are centered on those investments necessary to grow our
businesses organically and through acquisitions, while also providing cash
returns to shareholders. With our strong balance sheet and robust cash flow
generation, we continue to support our growth priorities while returning
additional cash to shareholders through the repurchase program."
In other action, the Board of Directors of ITT Corporation declared an $0.11
per share dividend for the fourth quarter of 2006. The dividend is payable on
January 1, 2007 to shareholders of record on November 17, 2006.
Primary Business Results
Defense Electronics & Services
* ITT's Defense Electronics & Services segment reported third quarter
2006 revenues of $957.4 million, up 19 percent, over the same period
last year, led by increases in the Aerospace/Communications, Night
Vision and Advanced Engineering and Sciences businesses.
* Higher volume, better yields and contract performance drove third
quarter operating results. Third quarter operating income for the
segment was $112.6 million, including the impact of restructuring.
Excluding restructuring, operating income was up 17 percent in the
quarter to $113.6 million over the comparable period in 2005.
* The company saw strong order growth in the third quarter, with orders
up 28 percent over the same quarter of 2005.
Fluid Technology
* Third quarter 2006 Fluid Technology revenue was $780.3 million, up
$85.8 million or 12 percent; organic revenues grew 7 percent over the
same period in 2005, led by the Water and Wastewater businesses.
Operating income was $97.8 million for the third quarter, including the
impact of restructuring. Excluding restructuring, third quarter
operating income was up 15 percent to $103.4 million.
* Operating margins, excluding restructuring, grew by 40 basis points in
the quarter, to 13.3 percent as a result of ongoing operational and
lean initiatives.
* Total orders for the third quarter were up 19 percent and organic
orders were up 15 percent compared to the third quarter of 2005.
Motion & Flow Control
* 2006 third quarter revenues for ITT's Motion & Flow Control segment
were $167.1 million, up 11 percent from the third quarter last year.
* 2006 third quarter operating income for the segment declined to $23.7
million, including the impact of restructuring. Excluding
restructuring, operating income for this segment was $25.1 million,
down 16 percent from the same quarter in 2005. The decline in operating
income resulted from the costs of factory relocations and increases in
the cost of certain specialty materials.
* During the third quarter the company completed the acquisition of
aerospace pump manufacturer SOTA Corporation, which will become part of
the Aerospace Controls value center. SOTA strengthens the company's
ability to compete as an integrator of small fluid management systems
used on aircraft.
Electronic Components
* The process to sell Electronic Components' Switches business is
progressing, and presentations to prospective buyers have commenced. As
a result, the Switches business has been moved to discontinued
operations effective with the third quarter results.
* 2006 third quarter revenues for the Electronic Components segment were
$99.9 million, up 16 percent over the same period in 2005. Organic
revenue grew 15 percent, due to strong performance in the
transportation, industrial and military markets.
* Operating income for the third quarter was $10.0 million. Excluding
restructuring, operating income was up 107 percent over the third
quarter last year to $11.2 million. Operating margins, excluding
restructuring, grew 490 basis points compared to the third quarter of
2005, primarily driven by strong demand in the industrial market and
continuing operational improvements.
About ITT Corporation
ITT Corporation (http://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
electronic components markets with a wide range of products. Headquartered in
White Plains, NY, the company generated $7.0 billion in 2005 sales. In addition
to the New York Stock Exchange, ITT Corporation stock is traded on the NYSE
Arca, Paris, London and Frankfurt exchanges.
For free B-roll/video content and logo about ITT Corporation, please log
onto http://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 Industries, Inc. Annual Report on Form 10-K for the fiscal
year ended December 31, 2005, 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 CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED INCOME STATEMENTS
(In millions, except per share)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2006 2005 2006 2005
---------- ---------- ---------- ----------
Sales and revenues $ 2,001.1 $ 1,734.6 $ 5,756.6 $ 5,195.3
Costs of sales and
revenues 1,418.3 1,270.0 4,148.3 3,791.3
Selling, general and
administrative expenses 316.4 227.4 855.4 721.9
Research and development
expenses 41.7 38.2 119.6 116.4
Restructuring and asset
impairment charges 9.8 19.0 32.0 43.1
Total costs and expenses 1,786.2 1,554.6 5,155.3 4,672.7
Operating income 214.9 180.0 601.3 522.6
Interest expense 19.4 17.9 60.8 51.9
Interest income 6.3 16.6 14.8 36.3
Miscellaneous expense, net 4.1 2.4 13.6 12.9
Income from continuing
operations before income
taxes 197.7 176.3 541.7 494.1
Income tax expense 57.3 22.9 163.9 87.8
Income from continuing
operations 140.4 153.4 377.8 406.3
Discontinued operations,
including tax (benefit) /
expense of $(0.7), $(38.8),
$9.0 and $(38.9) in each
period, respectively 3.1 35.9 62.5 37.2
Net income $ 143.5 $ 189.3 $ 440.3 $ 443.5
Earnings Per Share:
Income from continuing
operations:
Basic $ 0.76 $ 0.83 $ 2.05 $ 2.20
Diluted $ 0.75 $ 0.81 $ 2.02 $ 2.15
Discontinued operations:
Basic $ 0.02 $ 0.19 $ 0.34 $ 0.20
Diluted $ 0.02 $ 0.19 $ 0.33 $ 0.20
Net income:
Basic $ 0.78 $ 1.02 $ 2.39 $ 2.40
Diluted $ 0.77 $ 1.00 $ 2.35 $ 2.35
Average Common Shares -
Basic 184.1 184.8 184.3 184.6
Average Common Shares -
Diluted 186.7 188.9 187.2 188.7
ITT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
September 30, December 31,
2006 2005
------------- -------------
Assets
Current Assets:
Cash and cash equivalents $ 792.5 $ 451.0
Receivables, net 1,270.5 1,197.7
Inventories, net 717.2 622.9
Current assets of discontinued operations 205.2 468.0
Deferred income taxes 69.0 73.7
Other current assets 89.2 66.9
Total current assets 3,143.6 2,880.2
Plant, property and equipment, net 775.6 782.0
Deferred income taxes 95.5 72.2
Goodwill, net 2,308.9 2,227.3
Other intangible assets, net 237.9 214.8
Other assets 974.7 893.7
Total assets $ 7,536.2 $ 7,070.2
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $ 833.7 $ 751.5
Accrued expenses 853.0 715.5
Accrued taxes 147.4 193.0
Current liabilities of discontinued operations 99.6 167.9
Notes payable and current maturities of
long-term debt 595.3 750.9
Other current liabilities 47.0 10.0
Total current liabilities 2,576.0 2,588.8
Pension and postretirement benefits 737.0 725.6
Long-term debt 511.7 516.0
Other liabilities 560.5 516.4
Total liabilities 4,385.2 4,346.8
Shareholders' equity 3,151.0 2,723.4
Total liabilities and shareholders' equity $ 7,536.2 $ 7,070.2
ITT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Nine Months Ended
September 30,
------------------------------
2006 2005
------------- -------------
Operating Activities
Net income $ 440.3 $ 443.5
(Income) loss from discontinued operations (62.5) (37.2)
Income from continuing operations 377.8 406.3
Adjustments to income from continuing operations:
Depreciation and amortization 127.1 127.8
Amortization of stock compensation 16.7 0.9
Restructuring and asset impairment charges 32.0 43.1
Payments for restructuring (36.2) (31.4)
Change in receivables (68.5) (171.8)
Change in inventories (76.9) (18.7)
Change in accounts payable and accrued expenses 176.3 139.9
Change in accrued and deferred taxes 14.0 85.7
Change in other current and non-current assets (82.9) (98.1)
Change in other non-current liabilities 9.3 (11.3)
Other, net (1.3) 5.5
Net cash - operating activities 487.4 477.9
Investing Activities
Additions to plant, property and equipment (95.2) (95.3)
Acquisitions, net of cash acquired (75.2) (38.4)
Proceeds from sale of assets and businesses 223.7 9.1
Other, net (6.4) (0.9)
Net cash - investing activities 46.9 (125.5)
Financing Activities
Short-term debt, net (157.2) 173.9
Long-term debt repaid (2.2) (4.5)
Long-term debt issued - 0.4
Repurchase of common stock (136.4) (288.5)
Proceeds from issuance of common stock 53.0 133.4
Dividends paid (57.3) (48.9)
Other, net 13.6 (0.2)
Net cash - financing activities (286.5) (34.4)
Exchange Rate Effects on Cash and Cash
Equivalents 29.8 (19.7)
Net Cash - Discontinued Operations Operating
Activities 71.2 (81.3)
Net Cash - Discontinued Operations Investing
Activities (7.2) (8.0)
Net Cash - Discontinued Operations Financing
Activities (0.1) (1.6)
Net change in cash and cash equivalents 341.5 207.4
Cash and cash equivalents - beginning of year 451.0 262.9
Cash and Cash Equivalents - end of period $ 792.5 $ 470.3
ITT Corporation Non-GAAP Press Release Reconciliation
Reported vs. Organic Revenue / Orders Growth
Third Quarter 2006 & 2005
($ Millions)
(As Reported - GAAP)
-------------------------------------------------
% Change
Sales & Sales & Change 2006
Revenues Revenues 2006 vs. vs.
3M 2006 3M 2005 2005 2005
---------- ---------- ---------- ----------
ITT Corporation - Consolidated 2,001.1 1,734.6 266.5 15%
Fluid Technology 780.3 694.5 85.8 12%
Defense Electronics & Services 957.4 806.7 150.7 19%
Electronic Components (1) 99.9 86.1 13.8 16%
Motion & Flow Control 167.1 150.0 17.1 11%
% Change
Change 2006
Orders Orders 2006 vs. vs.
3M 2006 3M 2005 2005 2005
---------- ---------- ---------- ----------
Fluid Technology 821.3 689.1 132.2 19%
Defense Electronics & Services 1,056.5 825.2 231.3 28%
(As Adjusted - Organic)
----------------------------------------------------------------------------
Acquisi- %
tion FX Adj. Change Change
Sales & Contrib- Contrib- Sales & Sales & Adj. Adj.
Revenues ution ution Revenues Revenues 06 06
3M 2006 3M 2006 3M 2006 3M 2006 3M 2005 vs. 05 vs. 05
-------- -------- -------- -------- -------- -------- --------
ITT Corporation -
Consolidated 2,001.1 (22.1) (20.0) 1,959.0 1,734.6 224.4 13%
Fluid Technology 780.3 (22.1) (14.3) 743.9 694.5 49.4 7%
Defense Electronics
& Services 957.4 0.0 (0.1) 957.3 806.7 150.6 19%
Electronic
Components (1) 99.9 0.0 (1.1) 98.8 86.1 12.7 15%
Motion & Flow
Control 167.1 0.0 (4.7) 162.4 150.0 12.4 8%
Acquisi- %
tion FX Change Change
Contrib- Contrib- Adj. Adj. Adj.
Orders ution ution Orders Orders 06 vs. 06 vs.
3M 2006 3M 2006 3M 2006 3M 2006 3M 2005 05 05
---------- ---------- ---------- ---------- ---------- ---------- ----------
Fluid Technology 821.3 (13.0) (15.6) 792.7 689.1 103.6 15%
Defense Electronics
& Services 1,056.5 0.0 0.1 1,056.6 825.2 231.4 28%
(1) Electronic Components excludes the results from the Switches business which
has been moved to discontinued operations.
ITT Corporation Non-GAAP Press Release Reconciliation
Segment Operating Income & OI Margin Adjusted for Restructuring
Third Quarter of 2006 & 2005
($ Millions)
Adjust
for
Q3 2006 Q3 2005 % Q3 2006 2006
As As Change 06 As Restru-
Reported Reported vs. 05 Reported cturing
---------- ---------- ---------- ---------- ----------
Sales and Revenues:
Electronic Components (1) 99.9 86.1 99.9
Defense Electronics & Services 957.4 806.7 957.4
Fluid Technology 780.3 694.5 780.3
Motion & Flow Control 167.1 150.0 167.1
Intersegment eliminations (3.6) (2.7) (3.6)
Total Ongoing segments 2,001.1 1,734.6 2,001.1
Dispositions and other - - -
Total Sales and Revenues 2,001.1 1,734.6 2,001.1
Operating Margin:
Electronic Components (1) 10.0% 0.3% 10.0%
Defense Electronics & Services 11.8% 12.0% 11.8%
Fluid Technology 12.5% 10.8% 12.5%
Motion & Flow Control 14.2% 18.2% 14.2%
Total Ongoing Segments 12.2% 11.5% 12.2%
Income:
Electronic Components (1) 10.0 0.3 3233.3% 10.0 1.2
Defense Electronics & Services 112.6 96.8 16.3% 112.6 1.0
Fluid Technology 97.8 74.7 30.9% 97.8 5.6
Motion & Flow Control 23.7 27.3 -13.2% 23.7 1.4
Total Segment Operating Income 244.1 199.1 22.6% 244.1 9.2
Adjust
for %
Q3 2006 Q3 2005 2005 Q3 2005 Change
As As Restru- As Adj. 06
Adjusted Reported cturing Adjusted vs. 05
---------- ---------- ---------- ---------- ----------
Sales and Revenues:
Electronic Components (1) 99.9 86.1 86.1
Defense Electronics & Services 957.4 806.7 806.7
Fluid Technology 780.3 694.5 694.5
Motion & Flow Control 167.1 150.0 150.0
Intersegment eliminations (3.6) (2.7) (2.7)
Total Ongoing segments 2,001.1 1,734.6 1,734.6
Dispositions and other - - -
Total Sales and Revenues 2,001.1 1,734.6 1,734.6
Operating Margin:
Electronic Components (1) 11.2% 0.3% 6.3% 490 BP
Defense Electronics & Services 11.9% 12.0% 12.0% (10)BP
Fluid Technology 13.3% 10.8% 12.9% 40 BP
Motion & Flow Control 15.0% 18.2% 19.9% (490)BP
Total Ongoing Segments 12.7% 11.5% 12.8% (10)BP
Income:
Electronic Components (1) 11.2 0.3 5.1 5.4 107.4%
Defense Electronics & Services 113.6 96.8 0.0 96.8 17.4%
Fluid Technology 103.4 74.7 15.2 89.9 15.0%
Motion & Flow Control 25.1 27.3 2.6 29.9 -16.1%
Total Segment Operating Income 253.3 199.1 22.9 222.0 14.1%
(1) Electronic Components excludes the results from the switches business which
has been moved to discontinued operations.
ITT Corporation Non-GAAP Press Release Reconciliation
Reported vs. Adjusted Net Income & EPS
Third Quarter of 2006 & 2005
($ Millions, except EPS and shares)
Q3 2006 Q3 2006 Q3 2006 Q3 2005
As Adjust- As As
Reported ments Adjusted Reported
---------- ---------- ---------- ----------
Segment Operating Income 244.1 9.2#A 253.3 199.1
Interest Income (Expense) (13.1) - (13.1) (1.3)
Other Income (Expense) (4.1) - (4.1) (2.4)
Gain on sale of Assets - - - -
Corporate (Expense) (29.2) 0.5#A (28.7) (19.1)
Income from Continuing Operations
before Tax 197.7 9.7 207.4 176.3
Income Tax Items 2.6 (4.2)#B (1.6) -
Income Tax Expense (59.9) (3.0)#C (62.9) (22.9)
Total Tax Expense (57.3) (7.2) (64.5) (22.9)
Income from Continuing Operations 140.4 2.5 142.9 153.4
(Loss) Income from Discontinued
Operations 3.1 (3.1)#D - 35.9
Net Income 143.5 (0.6) 142.9 189.3
Diluted EPS 0.77 (0.00) 0.77 1.00
Impact of SFAS-123R Adoption 0.02
Diluted EPS Excluding Impact of
SFAS-123R Adoption 0.79
Percent
Change Change
2006 vs. 2006 vs.
Q3 2005 Q3 2005 2005 2005
Adjust- As As As
ments Adjusted Adjusted Adjusted
---------- ---------- ---------- ----------
Segment Operating Income 22.9#E 222.0
Interest Income (Expense) (13.2)#F (14.5)
Other Income (Expense) - (2.4)
Gain on sale of Assets - -
Corporate (Expense) 0.3#E (18.8)
Income from Continuing Operations
before Tax 10.0 186.3
Income Tax Items (32.8)#G (32.8)
Income Tax Expense (3.1)#H (26.0)
Total Tax Expense (35.9) (58.8)
Income from Continuing Operations (25.9) 127.5
(Loss) Income from Discontinued
Operations (35.9)#I -
Net Income (61.8) 127.5 15.4 12.0%
Diluted EPS (0.33) 0.67 $ 0.10 15%
Impact of SFAS-123R Adoption 0.00
Diluted EPS Excluding Impact of
SFAS-123R Adoption 0.67 $ 0.12 18%
#A - Remove Restructuring Expense of $9.2 & $0.5.
#B - Remove Tax Refund of ($2.6M) and apply structural tax rate impact in Q3.
#C - Remove Tax Benefit on Special Items of ($3.0M).
#D - Remove D.O. income of $3.1M.
#E - Remove Restructuring Expense of $22.9 + $0.3.
#F - Remove Interest Income due to Tax Refund ($13.2M).
#G - Remove Tax Items of ($32.8M).
#H - Remove Tax Benefit on Special Items of ($3.1M).
#I - Remove D.O. income of ($35.9M).
SOURCE ITT Corporation
-0- 10/27/2006
/CONTACT: Brendan Mullin, +1-914-641-2160, Bmullin@peppercom.com,
for ITT Corporation/
/Web site: http://www.itt.com
http://www.thenewsmarket.com/ITT /