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
ITT Industries First Quarter Financial Results
(In millions, except per share)
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