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
"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
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
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
SOURCE ITT Industries, Inc.
CONTACT: Thomas R. Martin, 914-641-2157, or Ralph Allen,
914-641-2030, both of ITT Industries