ITT Industries Reports Third Quarter Gains; CEO Travis Engen Cites Progress, Challenges
WHITE PLAINS, N.Y., Oct. 16 /PRNewswire/ -- ITT Industries, Inc.
(NYSE: IIN) today reported third quarter net income of $43.7 million, or
$.36 per fully diluted share. In the third quarter of 1995, charges
associated with the disposition of non-strategic assets caused the company to
report a loss of $.46 per share. Excluding these charges, the 1995 third
quarter earnings per share would have been $.27. Pretax income of
$71.6 million was 17.4% greater than the prior year's $61.0 million, after
adjusting for the disposition charges.
Sales were $2.04 billion in the quarter, virtually unchanged from the
$2.05 billion in the previous year. Operating income for the quarter was
$109.4 million, an increase of 12.7% over the $97.1 million for the previous
Commenting on the results, Travis Engen, Chairman, President and Chief
Executive of ITT Industries, said, "While our third quarter results show
progress, we have stated that our goals are higher. We are continuing to face
challenges in our businesses, but we remain committed to our goals of
delivering value to our owners through revenue growth and improved margins."
For the first nine months of 1996, ITT Industries' sales were
$6.49 billion, a small decline from the $6.63 billion for the same period in
1995. Operating income for the nine-month period grew 8.8% to $366.6 million.
Excluding the 1995 after tax charge of $114.7 million associated with the
planned disposition of non-strategic assets, net income was $151.4 million for
the nine months of this year compared to $151.6 million in 1995.
Primary business results
ITT Automotive's operating income was $73.6 million, a 2.6% improvement
from the same quarter of last year. Sales for the quarter were $1.27 billion,
compared with $1.23 billion in the prior year. Revenue growth was aided by
market penetration and vehicle production volumes, partially offset by the
strength of the U.S. dollar, production mix and lower selling prices.
Operating earnings were supported by the continued smooth transition to the
new Mark 20 ABS products which are now approaching 50% of total ABS unit
production. During the quarter, Automotive received a significant contract
award from Mercedes-Benz to develop and supply ABS, traction control and
related systems for the new M-Class All Activity Vehicle, which will enter
production in 1997.
ITT Fluid Technology's third quarter operating income was $26.0 million on
revenues of $326.5 million. Despite certain weak public sector markets in
Europe, sales increased by $21.3 million, or about 7% above the prior year, as
a result of growth in emerging markets and strong order input from the
industrial, commercial and aerospace sectors. Operating income was down
$2.2 million from the previous year due primarily to foreign exchange and to
the absence of income from a unit divested earlier in the year.
ITT Defense & Electronics' operating income for the quarter rose 4.6% to
$24.9 million although sales were $19.6 million lower. Income growth was
primarily the result of continued improvements at the interconnect business,
which benefited from restructuring and productivity efforts. Revenues for the
quarter declined from $394.8 million in 1995 to $375.2 million this year.
Quarterly sales comparisons are made difficult by the timing of shipments.
During the quarter, Defense & Electronics announced the award of over
$600 million of contracts to its Federal Services group. This brings the
expected Defense & Electronics year-end backlog to $2.2 billion, an increase
of 12% over the prior year-end.
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 Automotive is
one of the world's largest independent suppliers of systems and components to
ITT Defense & Electronics is a world leader in the design, manufacture and
support of high technology electronic systems and components for defense and
ITT Fluid Technology, is one of the world's leading manufacturers of
products, systems and services for the movement, measurement, and control of
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. More detailed information on
ITT Industries is available on-line at http://www.ittind.com.
ITT Industries Third Quarter Financial Results
(In millions, except per share)
Sales $ 2,044.8 $ 2,047.9
Operating Income $ 109.4 $ 97.1
Net Income $ 43.7 $ 31.6
Average shares outstanding 120.4 117.7
Earnings per share $.36 $.27
SOURCE ITT Industries, Inc.
CONTACT: Ralph D. Allen or Theodore P. Economou of ITT
Industries, 914-641-2030 or http://www.ittind.com