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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 15, 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 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):
[ ] 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)
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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 15, 2006 ITT Corporation issued a press
release revising its 2006 earnings forecast and providing its 2007 financial
outlook. The 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 December 15, 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
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Kathleen S. Stolar
Its: Vice President, Secretary
and Associate General Counsel
Date: December 15, 2006
3
Exhibit 99.1
ITT CORPORATION FORECASTS STRONG 2007 PERFORMANCE IMPROVEMENT
- FY2007 earnings expected to rise to $3.30-$3.38 per share
- FY2007 revenues projected to increase by 6 to 7 percent; segment
operating margins projected to increase by 50-70 basis points; strong
free cash flow
- Management will recommend 27 percent dividend increase in 2007
- FY2006 earnings forecast revised to $2.78-$2.80 per share, reflecting $25
million charge to net income ($0.13 per share) related to Night Vision
legal matter
WHITE PLAINS, N.Y., Dec. 15 /PRNewswire-FirstCall/ -- ITT Corporation (NYSE:
ITT) said today that continued organic growth in its core businesses, stronger
operating performance and a more focused portfolio have positioned the company
to deliver another year of solid earnings growth in 2007.
"We're completing another strong operating year for ITT, in which we will
achieve double digit revenue growth, excellent cash performance, and earnings
growth," said Steve Loranger, Chairman, President and Chief Executive Officer of
ITT Corporation. "Our management team is continuing to anticipate the needs of
our customers and deliver reliable solutions for them. Our confidence in the
year ahead is reflected in this very positive outlook for 2007. We have
excellent market positions around the world, a steady flow of new product
innovations and a proven management team. We provide products and services that
are truly vital to our customers and we are committed to enhancing these strong
customer relationships. With the broad diversification in our end-use markets,
and our blend of both long and short-cycle businesses, we believe the company is
well positioned to grow revenues, margins and earnings in 2007."
The company now expects full year 2006 earnings from continuing operations
will be $2.78- $2.80 per share, reflecting a charge to net income of $25 million
($0.13 per share) in the 4th quarter of 2006 in anticipation of resolution of a
legal matter in its Roanoke-based Night Vision business. The charge, in addition
to previous reserves, is expected to cover the financial requirements of the
pending resolution. A settlement that would resolve all outstanding issues
relating to this investigation that began several years ago regarding compliance
with U.S. export regulations is expected to be concluded in the first quarter of
2007. "ITT is committed to having a world class compliance culture," said
Loranger. "We are working diligently with the government to resolve this matter
by early next year."
The company also announced that it plans to raise its annual dividend by 27
percent to $0.56 per share effective April 2007, subject to approval by the
Board of Directors. The company announced in October that it would repurchase up
to $1 billion of its common stock from time to time in the open market over a
three-year period.
2007 Expected to Build on Momentum Achieved in 2006
For comparison purposes, the following 2006 forecast and 2007 outlook
reflect results from continuing operations excluding special items.
FY2006 FY2007
Forecast Outlook Guidance
--------------- --------------- ----------
Revenues: $7,760 - $7,825 $8,285 - $8,375 +6 to 7%
EPS: $2.78 - $2.80 $3.30 - $3.38 +18 to 21%
2007 Segment Forecast
Fluid Technology
The water/wastewater businesses, coupled with the rollout of new commercial
water products, should lead the improvements in Fluid Technology in 2007,
driving projected revenue growth of 6 to 7 percent to approximately $3.2 billion
in this segment. Operating margin is expected to grow 80-100 basis points,
driven primarily by higher incremental margins on new business, lean and Six
Sigma initiatives, low cost sourcing and footprint rationalization efforts.
Defense Electronics & Services
The company's Defense Electronics & Services segment anticipates that it
will extend its growth trend in 2007, with revenue expected to increase 8 to 9
percent to approximately $4 billion. This should be driven by continued strong
demand for its Aerospace/Communications and Night Vision businesses, and recent
contract wins in Systems, and Advanced Engineering and Sciences. Segment
operating margins are expected to be up 20 to 30 basis points in 2007 over 2006
performance that includes the charge recorded for the Night Vision legal matter.
Motion & Flow Control
For 2007, the Connectors business, formerly included with Switches in the
Electronic Components segment, will be reported within Motion and Flow Control.
Market share growth in Friction Materials and Aerospace Controls are expected to
drive overall growth in the Motion & Flow Control segment in 2007. The company
anticipates 2007 segment revenues of approximately $1.1 billion, representing a
3 to 5 percent revenue growth. Improved cost positions through production in low
cost areas, global sourcing and lean manufacturing initiatives, are expected to
improve the segment's operating margins by 40-80 basis points for 2007.
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
electronic connectors 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 Paris,
London and Frankfurt exchanges.
For free B-roll/video content and logo about ITT Corporation, please log
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"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.
SOURCE ITT Corporation
-0- 12/15/2006
/CONTACT: Tom Martin, +1-914-641-2157, tom.martin@itt.com/
/First Call Analyst: /
/FCMN Contact: beth.coffman@itt.com /
/Web site: http://www.itt.com /
(ITT)