ITT Industries Reports Higher Second Quarter Earnings
WHITE PLAINS, N.Y., July 19 /PRNewswire/ -- ITT Industries, Inc.
(NYSE: IIN) today reported second quarter net income of $68 million, or
$.56 per fully diluted share. Earnings per share in the prior year's
quarter were $.35 and were lowered by charges associated with the
planned disposition of certain non-strategic assets. Pretax income for
the second quarter of 1996 was $114 million, 9.6% ahead of the prior
year period after adjusting for one-time charges in 1995.
Sales were $2.2 billion in the second quarter, slightly lower than
the $2.3 billion reported in the second quarter of 1995, and operating
income was $152 million, up 9.4% from the $139 million in the second
quarter of 1995. Second quarter 1996 operating income was reduced by
$10 million of restructuring costs including relocation of manufacturing
capacity at ITT Automotive.
"Our second quarter operating results showed continued improvement
in a very competitive environment in our key markets," said Travis
Engen, chairman, president and chief executive of ITT Industries. "We
continue to secure new business at a pace which solidifies our long-term
positions, and each of our businesses won contracts that are the results
of building on our industry-leading products and brands, and leveraging
our proprietary technologies, two keys to our strategy for growth," he
For the first six months of 1996, ITT Industries sales were $4.4
billion, a small decline from the first half of 1995. The first quarter
of this year included the negative impact of a strike at General Motors.
Operating income for the period grew 6.2% to $257 million. Net income
was $108 million for the first half of 1996 compared to $91 million from
continuing operations in the prior year, which included $30 million in
1995 pretax charges associated with the planned disposition of non-
Primary businesses' results
ITT Automotive operating income was $102 million, after $10 million
of restructuring expenses including costs associated with the movement
of production facilities to lower cost locations. Adjusting for the
effect of this charge, operating income was a record $112 million.
Total sales for the quarter were $1.45 billion, compared with $1.48
billion in the second quarter of 1995. ITT Automotive's revenues were
lower primarily due to the negative impact of foreign exchange and the
phase-in of the new, lower-price Mark 20 ABS braking system. Separately,
in support of its long-term strategy to target large program contracts,
ITT Automotive has secured new business awards with multi-billion
lifetime sales values, including a five-year, $600 million award to
supply complete braking control systems to Mercedes-Benz AG. These
awards, a significant portion of which represent incremental business,
begin in the 1998 model year.
ITT Fluid Technology second quarter operating income was $30 million
on revenues of $321 million, representing increases of 3.4% and 1.6%,
respectively, over the year ago period. Sales comparisons were
negatively impacted by the sale of General Controls early in the
quarter, as well as weak market conditions in France and Germany.
However, Fluid Technology's strong performance in developing markets and
certain U.S. segments offset these factors. Aggressive international
marketing efforts continue to result in strong double digit sales
increases in Asia-Pacific and Eastern European markets.
ITT Defense & Electronics expanded operating margins in the second
quarter. Operating income was $30 million on sales of $378 million,
representing an increase of 11.1% versus 1995 on 6.2% lower sales.
Defense & Electronics' strong income growth resulted from continued
operating efficiencies which enabled the defense business to see
improved margins on contracts and the electronics business to record
continued margin improvements. ITT Defense & Electronics won new orders
totaling more than $690 million, including a $153.8 million contract
from the U.S. Army for Single Channel Ground and Airborne Radio Systems
(SINCGARS) ground units, and more than $250 million in technical service
contracts for ITT Federal Services.
ITT Industries is a leading worldwide diversified manufacturing
company, with 1995 sales of $8.4 billion from its three primary business
segments: automotive, defense & electronics, and fluid technology. ITT
Industries, through its ITT Automotive subsidiary, is one of the world's
largest independent suppliers of systems and components to automotive
manufacturers. The company, through its ITT Defense & Electronics
business, is a world leader in the design, manufacture, and support of
high technology electronic systems and components for defense and
commercial markets. ITT Industries, through ITT Fluid Technology, is
one of the world's leading manufacturers of products, systems and
services for the movement, measurement, and control of fluids. (More
information about ITT Industries is available on the World Wide Web at
In addition to the New York Stock Exchange, ITT Industries' stock is
traded under the symbol (IIN) on the Basel, Bern, Frankfurt, Geneva,
Lausanne, London, Midwest, Pacific, and Paris exchanges.
ITT Industries Second Quarter Financial Results
(In millions, except per share)
Sales $2,241 $2,337
Operating Income $ 152 $ 139
Net Income $ 68 $ 46*
Average shares outstanding 121 117
Earnings per share $ 0.56 $ 0.35*
* 1995 data is from continuing operations
CONTACT: Ralph D. Allen or Theodore P. Economou of ITT
Industries, 914-641-2030, or http://www.ittind.com -- e-mail