ITT Corporation

ITT Industries Reports Higher Second Quarter Earnings


    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-
    strategic assets.
        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)
                                              1996              1995
         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 -- e-mail

About ITT

ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial, and oil and gas markets. Building on its heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin our modern way of life. ITT is headquartered in White Plains, N.Y., with employees in more than 35 countries and sales in a total of approximately 125 countries. The company generated 2016 revenues of $2.4 billion.


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