ITT Corporation

ITT Industries Reports 12% E.P.S. Gain in First Quarter; Defense and Electronics Shows Strongest Gains

    4/21/1997

        WHITE PLAINS, N.Y.,  April 21 /PRNewswire/ -- ITT Industries, Inc.
    (NYSE: IIN) today reported first quarter 1997 net income of $44.3 million, or
    $.37 per fully diluted share.  Earnings per share increased 12.1 percent over
    the $.33 per share reported in the first quarter of 1996.  Operating income
    from ongoing segments reached $123.0 million, up $5.7 million or 4.9 percent
    over the 1996 figure.  Total sales of $2.2 billion were down $34.3 million
    from the first quarter of 1996 due to the disposition of certain non-core
    operations and foreign exchange translation.
        "We are pleased with ITT Industries' first quarter results, and we are
    excited about the prospect of major contributions in the future from a new
    global partner in fluid technology," said Travis Engen, Chairman and
    Chief Executive.  "Today we announced the acquisition of Goulds Pumps, Inc.,
    making us the world's largest pump manufacturer.  This represents the most
    dramatic step to date in our long-term strategy of building value.  It further
    sharpens our focus on areas where we feel we can grow rapidly and profitably,"
    Mr. Engen said.
        "Our first quarter gains stemmed from positive results at ITT Defense &
    Electronics, with 15.7 percent growth in sales and 25 percent growth in
    operating income, and at ITT Fluid Technology, which achieved 9 percent growth
    in operating income," Mr. Engen said.  "This more than offset a small profit
    decline at ITT Automotive. This is a strong start for the year."
    
        Primary Business Results
        ITT Automotive recorded first quarter operating income of $74.0 million,
    down slightly from $75.3 million in the prior year.  Sales for the quarter
    were $1.39 billion for 1997 against $ 1.42 billion last year.  Results at
    Automotive were affected by the continued strength of the dollar, as well as
    the continued phase-in of the MK-20, which replaces the MK-4 anti-lock brake
    system, and has a lower unit price. During the quarter the company began the
    first stages of a reorganization plan in the automotive area designed to
    improve responsiveness, increase speed to market and lower costs.
        ITT Defense & Electronics' operating income for the quarter of
    $25.1 million was up $5.0 million or 25 percent from last year.  Operating
    income, driven by strong revenue growth, rose both in the defense and
    the interconnect segments of the business.  Sales were $409.3 million for the
    quarter, up from $ 353.7 million in 1996.  ITT Cannon, benefiting from the
    recovering interconnect market, improved margins from 5.2 percent a year ago
    to 8.9 percent for the quarter.
        ITT Fluid Technology reported first quarter operating income
    of $23.9 million, up more than 9 percent from $21.9 million last year.  Sales,
    at $307.5 million, were essentially flat compared to the prior year. Factoring
    out revenues from ITT General Controls, which was sold in the second quarter
    of 1996, as well as the effect of foreign exchange translation, revenues
    would have increased over 4 percent.
        ITT Industries (http://www.ittind.com) is a leading global diversified
    manufacturing company, with 1996 sales of $8.4 billion dollars from its three
    primary business segments, fluid technology, automotive, and defense and
    electronics.  ITT Industries' automotive business is one of  the world's
    largest independent suppliers of systems and components to automotive
    manufacturers. In the defense and electronics area, ITT Industries is a leader
    in the design, manufacture and support of high technology electronic systems
    and components for defense and commercial markets. In fluid technology, ITT
    Industries 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 Midwest, Pacific, London, Frankfurt and
    Paris exchanges.
    
                    ITT Industries First Quarter Financial Results
                           (In millions, except per share)
    
                                       First Quarter
                                     1997       1996
    
        Sales                    $ 2,166.6    $ 2,200.9
        Operating Income             103.3        105.1
        Net Income                    44.3         40.0
        Average shares outstanding   120.6        120.2
        Earnings per share            0.37         0.33
    
    SOURCE  ITT Industries
    
    

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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