ITT Corp. (ITT) filed Quarterly Report for the period ended 2009-09-30.
ITT Corporation 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 market with a wide range of products. Itt Corp. has a market cap of $9.3 billion; its shares were traded at around $50.99 with a P/E ratio of 14 and P/S ratio of 0.8. The dividend yield of Itt Corp. stocks is 1.7%. Itt Corp. had an annual average earning growth of 10.6% over the past 10 years.
Highlight of Business Operations:
ITT reported sales and revenues of $2.7 billion during the third quarter of 2009, a decrease of 6.3% from the $2.9 billion reported during the third quarter of 2008, reflecting challenging market conditions for our Fluid Technology and Motion & Flow Control business segments. Income from continuing operations for the third quarter of 2009 was $66.0 or $0.36 per diluted share, which includes a net after-tax charge of $138.9 or $0.75 per diluted share related to the establishment of an accrual for future asbestos claims. Income from continuing operations for the third quarter decreased $138.5 or 67.7% as compared to the third quarter of 2008. The decrease was primarily driven by the charge for asbestos claims, as well as the impact of lower sales volumes, unfavorable foreign currency and higher restructuring and employee benefit plan costs. These reductions were partially offset by improved margins from productivity improvement initiatives resulting in lower costs of sales and selling, general and administrative (“SG&A”) expenses. The following are financial highlights for the quarter ended September 30, 2009.
The current global economic environment continued to present difficult market conditions during the third quarter and first nine months of 2009, particularly within our Fluid Technology and Motion & Flow Control business segments. We have responded to these uncertain times through various restructuring actions and other cost-saving initiatives that have generated productivity improvements and helped deliver a solid performance. We expect to incur restructuring costs of approximately $35.0 to $40.0 during the fourth quarter of 2009, in addition to the $40.0 incurred during the first nine months of 2009. Going forward in this environment, our continued strategy is to focus on the current needs of our customers, deploy our capital in a disciplined manner, focus on cost controls, and execute on our operational initiatives.
Sales and revenues for the quarter and nine months ended September 30, 2009 were $2,697.7 and $8,034.8, respectively, representing decreases of 6.3% and 8.2%, respectively, as compared to the same prior year periods. Volume declines, primarily driven by global economic conditions, and unfavorable foreign currency fluctuations continued to negatively impact our Fluid Technology and Motion & Flow Control business segments, resulting in declines of 13.0% and 22.1%, respectively, for the quarter and nine months ended September 30, 2009. These declines were partially offset by modest revenue growth of 1.8% at our Defense Electronics & Services business segment.
ITT is in the portfolios of John Keeley of Keeley Fund Management, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
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