ITT Corporation

ITT Industries Reports Higher Second Quarter E.P.S. of $.68 Per Share; Defense and Electronics Shows Strongest Gains

    7/22/1997

        WHITE PLAINS, N.Y., July 22 /PRNewswire/ -- ITT Industries, Inc.
    (NYSE: IIN) today reported second quarter 1997 net income of $82.6 million, or
    $.68 per fully diluted share.  Earnings increased 22.0% over the $67.7 million
    or $.56 per share reported for the quarter in 1996.  Operating income reached
    $157.2 million, up $5.1 million or 3.3% over 1996.  Total sales from ongoing
    segments of $2.19 billion were up $45.4 million from the second quarter of
    1996.  These results include operations from Goulds Pumps for the month of
    June.
        "Our second quarter results continue double-digit earnings growth," said
    Travis Engen, Chairman, President and Chief Executive.  "During the quarter we
    completed our acquisition of Goulds Pumps, and the integration activities
    between the Goulds organization and the rest of Fluid Technology are well
    underway.  We are very enthusiastic about this acquisition."
        "Also during the quarter, we named Frank Macher to head our Automotive
    unit," said Engen.  "Frank brings extensive experience and a proven track
    record of profitability and cost improvement from his distinguished career in
    the automotive industry."
        Net income for the first six months of 1997 was $126.9 million, or $1.05
    per fully diluted share.  Earnings increased 17.9% over the $107.7 million or
    $.89 per share reported for the period in 1996.  Operating income reached
    $260.5 million, up $3.3 million or 1.3% over 1996.
        Total sales from ongoing segments of $4.30 billion were up $74.7 million
    from the first half of 1996.
    
        Primary Business Results
        ITT Automotive recorded operating income of $100.8 million, down slightly
    from $101.9 million in the prior year.  Sales for the quarter were
    $1.39 billion for 1997 against $1.45 billion last year, reflecting the
    negative effects of foreign exchange, price declines, and the sale of the
    North American aftermarket operations, which took place during the quarter.
    That sale continues the company's commitment to  divest non-core assets and to
    focus on areas that offer the greatest strategic and competitive advantages.
    Operating margin of 7.3% is slightly down from last year, after adjusting the
    1996 figure for restructuring.  Operating margins continue to be under
    pressure from price declines and continued transition to the MK20 anti-lock
    brake system.
        ITT Defense & Electronics' operating income of $33.9 million was up
    $3.8 million or 12.7% due to strong operating income gains at ITT Cannon.
    Sales were $409.5 million for the quarter, up from $378.2 million in 1996.
    Sales growth was generated both in the defense and the interconnect segment of
    the business.  Sales growth was strong in the international sector, a trend
    which gained momentum throughout 1996, with every Defense unit reflecting
    higher international sales during the quarter.  Defense & Electronics
    announced in the second quarter major orders for Night Vision equipment from
    Australia.  Continued progress was made on the Bowman program, a $3.2 billion
    tactical communications system for the British armed forces, with the formal
    signing of the joint venture agreement with Racal and Siemens/Plessey.
    Defense & Electronics won the competition to become the sole supplier to the
    U.S. Army for SINCGARS (secure digital radio equipment), an award that is
    expected to total $500 million over the life of the contract.
        ITT Fluid Technology reported second quarter operating income of
    $37.2 million, up from $29.7 million last year.  Sales of $397.2 million were
    up 23.8% from the prior year, due primarily to the addition of Goulds Pumps.
    Excluding Goulds, Fluid Technology base revenues were up 2.9% and operating
    income was up 1.8%, reflecting negative exchange effects and continued
    softness in municipal spending in Western Europe, offset by growth in the
    United States.
    
                          Highlights of 2nd Quarter Results
    
                                  2nd Q97             2Q96
    
        Total Sales              $ 2,250.9           $2,241.2
        Net Income               $    82.6           $   67.7
        E.P.S.                   $     .68           $    .56
    
    
        ITT Industries (http://www.ittind.com) is a leading worldwide diversified
    manufacturing company, with 1996 sales of $8.37 billion from its three primary
    business segments: Automotive, Defense and Electronics, and Fluid Technology.
    ITT Automotive is one of the largest independent suppliers of systems and
    components to automotive manufacturers. ITT Defense and Electronics is a
    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
    Paris exchanges.
    
    SOURCE  ITT Industries, Inc.
    
    

    CONTACT: Thomas R. Martin, 914-641-2157, or Ralph Allen,
    914-641-2030, both of 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.

Investors

Jason Moss
tel +1 914-641-2030
jason.moss@itt.com

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Laurent Lawrence
tel +1 914-304-1809
laurent.lawrence@itt.com

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