WHITE PLAINS, N.Y., Jan. 28 /PRNewswire/ -- ITT Industries, Inc.
(NYSE: IIN) today reported full year 1996 net income of $222.6 million, or
$1.85 per fully diluted share. Earnings increased 20.3% over the
$185.0 million or $1.57 per share reported in 1995. The 1995 figure is
adjusted to remove the $164.3 million provided for the disposition of non-
core units. Operating income reached $508.4 million, up $62.2 million or
13.9% over the 1995 figure. Total sales of $8.72 billion were down slightly
from the $8.88 billion level in 1995 due to the disposition of certain non-
core operations and somewhat lower sales in automotive parts.
For the fourth quarter, earnings per share were $0.59, more than double
the comparable $0.28 in 1995. Charges of $49.6 million associated with the
disposition of non-strategic assets in the fourth quarter of 1995 had resulted
in a reported net loss of $16.2 million. Operating income from ongoing
segments for the quarter was $157.0 million, up 20.1% from $130.7 million
reported in 1995, reflecting the company's strong commitment to cost
reductions. Sales from ongoing segments in the fourth quarter were
$2.17 billion which represents an increase of $44.6 million or 2.1% versus
"ITT Industries delivered generally improved results in 1996, including
double digit earnings growth," said Travis Engen, Chairman, President and
Chief Executive. "During the year we secured several important business
contract wins, and made key technical advances in all three of our business
areas. 1996 was a year of substantial progress for ITT Industries as we
successfully launched our newly independent company."
Important corporate milestones which marked 1996 include the following:
-- All three operating businesses aggressively expanded their global
presence. In particular, ITT Defense and Electronics' international
revenues reached 15% of total defense sales, reflecting a focus to
expand internationally. ITT Fluid Technology, with more than half of
its sales from outside the U.S., further expanded its manufacturing and
distribution capacity in emerging markets, which now account for more
than 15% of sales. ITT Automotive revenues generated outside North
America represented more than 50% of total Automotive revenues for the
-- Net debt was reduced by more than $215 million, improving financial
-- Return on Total Capital increased for the fourth consecutive year,
reaching a record 14.6% in 1996.
"These achievements are a credit to the energy and commitment of all ITT
Industries employees, now numbering almost 59,000 worldwide," said Engen.
"They are responsible for the important advances in our first year as an
independent company. Having completed this important first year, we will
continue to work to create value for our shareholders, our customers, our
employees, and the communities in which we do business."
Primary Business Results
ITT Automotive recorded operating income of $337.1 million, down slightly
from $343.6 million in the prior year. Sales were $5.49 billion for 1996
against $5.57 billion last year. The ramp up of the new MK20 ABS product
line, inefficiencies caused by the two GM Corporation strikes and continued
price pressures in the industry affected earnings. During the year,
Automotive secured a number of very important contracts for advanced braking
systems and introduced several new products in its electrical systems group.
The focus in 1997 will be on product and profitability enhancement programs.
ITT Defense & Electronics' operating income of $110.2 million was up
$13.6 million or 14.1% for the year. Income growth was generated both in the
defense and the interconnect segments of the business. Sales were
$1.57 billion for the year, up slightly from $1.56 billion in 1995. ITT
Defense & Electronics saw progress on a number of important fronts in 1996.
International defense sales and future prospects were improved as major
contract wins created significant increases in the total order backlog to
$2.3 billion. Market leadership positions in tactical communications, night
vision and airborne electronic warfare were also enhanced. The company's
interconnect business, ITT Cannon, improved both in financial performance and
market positioning during the year.
ITT Fluid Technology reported operating income of $113.2 million in 1996,
up slightly from $112.8 million. Sales of $1.30 billion increased 4.3% from
$1.25 billion in 1995. Excluding the General Controls business, which was
sold early in the year, sales increased 6.0%. Fluid Technology made important
advances in a year that saw negative impact both from a key European market
slowdown and foreign exchange swings. Fluid Technology's development of
emerging markets, new products and technologies, and important cost
improvement programs have positioned this dynamic business to continue its
advances in market penetration and in financial performance. In particular,
aggressive expansion in developing countries will help maintain growth rates
above industry averages.
ITT Industries Fourth Quarter and Total Year Financial Results
(In millions, except per share)
Fourth Quarter Total Year
1996 1995* 1996 1995*
Total Sales $2,231.2 $2,251.3 $8,718.1 $8,884.2
Operating Income $ 141.8 $ 109.2 $ 508.4 $ 446.2
Net Income $ 71.2 $ 33.4 $ 222.6 $ 185.0
Averages shares outstanding 120.6 117.9 120.4 117.7
Earnings per share $ 0.59 $ 0.28 $ 1.85 $ 1.57
* Adjusted to exclude one-time charges
ITT Industries is a leading worldwide diversified manufacturing company,
with 1996 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 Midwest, Pacific, London, Frankfurt and
SOURCE ITT Industries, Inc.
CONTACT: Ralph D. Allen or Theodore P. Economou of ITT
Industries, 914-641-2030 or http://www.ittind.com