ITT Corporation

ITT Industries Reports Third Quarter Gains; CEO Travis Engen Cites Progress, Challenges

    10/16/1996

    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
    year.
        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
    automotive manufacturers.
        ITT Defense & Electronics is a world leader in the design, manufacture and
    support of high technology electronic systems and components for defense and
    commercial markets.
        ITT Fluid Technology, is one of the world's leading manufacturers of
    products, systems and services for the movement, measurement, and control of
    fluids.
        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)
    
                                                 1996         1995
        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

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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