ITT Corporation

ITT Industries Chairman Confirms 1999 - 2003 Performance Targets; Company Committed to Grow Sales, Margins, EPS


        NEW YORK, June 29 /PRNewswire/ -- ITT Industries, Inc. (NYSE: IIN)
    Chairman and Chief Executive Travis Engen outlined the company's growth plans
    and financial targets for professional investors here today.  Engen said ITT
    Industries expects to achieve consistent earnings per share (EPS) growth in
    the range of 14 to 16 percent over the next 4 years, driven by sales growth of
    between 8 and 10 percent per year including acquisitions, and segment
    operating margins that will improve to the range of 12 percent.  Engen and
    other top executives discussed these plans for growth in all areas of the
        "We believe these goals are achievable and we are determined to reach
    them," Engen said.  "We aim to be recognized as a premier, global multi-
    industry company that delivers consistent earnings growth.  Our businesses are
    gearing up for a higher level of performance, and our cash flow supports our
        Engen highlighted the significant portfolio shift the company has
    successfully undertaken in the last year, continuing to execute the plan to
    shed less profitable businesses and focus all attention and resources to grow
    those businesses with the greatest potential to enhance shareholder value.
        "We are a different company today than we were at this time last year,"
    Engen said.  "With our new business mix, stronger balance sheet and new
    management processes, we can grow faster both organically and through
    acquisitions. "
        ITT Industries' President and Chief Operating Officer Louis J. Giuliano
    spoke of his plans to accelerate growth and improve profitability through
    faster new product development, expanding into new markets, acquiring
    companies that strengthen existing businesses, with continuous process
    improvement as an overarching imperative in the company.
        "By sharpening our market focus, getting our processes right and
    controlling our costs, revenue and earnings growth will follow," Giuliano
    said. "We have seen this within several of our businesses across ITT
    Industries.  We have many opportunities to improve our product offering for
    the customer and our financial performance for the shareholder."
        Executive Vice President and Chief Financial Officer Heidi Kunz told
    analysts that ITT Industries intends to further enhance its generation of free
    cash flow through improved asset efficiency, particularly working capital
    utilization.  Kunz indicated that ITT Industries' goal is to improve the ratio
    of free cash flow to net income from the 70-75 percent achieved over the last
    three years to 100 percent over the next 3-4 years.
        "We are applying our rigorous Value Based Management to uncover new growth
    opportunities and maximize the returns on invested capital," Kunz said.  "We
    intend to direct our free cash flow to pursue these opportunities and
    accelerate growth."
        Kunz' remarks were followed by briefings by the heads of each of ITT
    Industries' business segments that outlined their plans to grow revenue and
    improve financial performance.
        ITT Industries, Inc. ( is a global industrial manufacturing
    company with leading positions in the markets that it serves, generating 1998
    sales of $4.5 billion.  ITT Industries is the world's largest producer of
    pumps and also produces systems and services to move and control water and
    other fluids.  The company is also a major supplier of sophisticated military
    defense systems, and provides advanced technical and operational services to a
    broad range of government agencies.  ITT Industries is a leading provider of
    connectors, switches and cabling used in telecommunications, computing,
    aerospace and industrial applications, as well as network services.  Further,
    ITT Industries provides industrial components for a number of other markets,
    including transportation, construction and aerospace. Based in White Plains,
    NY, ITT Industries employs approximately 33,000 people around the world.
        In addition to the New York Stock Exchange, ITT Industries' common stock
    is traded on the Midwest, Pacific, London, Frankfurt and Paris exchanges.
        Forward-Looking Statements
        Certain statements contained herein that are not historical facts,
    constitute "Forward-Looking Statements" within the meaning of the Private
    Securities Litigation Reform Act of 1995.  Such forward-looking statements
    involve known and unknown risks, uncertainties and other factors that may
    cause the actual results or performance of the Company and its businesses to
    be materially different from that expressed or implied by such forward-looking
    statements.  Such factors include, among others, the following:  general
    economic and business conditions; political, social and economic conditions
    and local regulations in the countries in which the Company conducts its
    businesses; government regulations and compliance therewith; demographic
    changes; sales and revenues mix; pricing levels; changes in sales and revenues
    to, or the identity of, significant customers; changes in technology; industry
    capacity and production rates; ability of outside third parties to comply with
    their commitments; competition; capacity constraints; availability of raw
    materials and adequate labor; availability of appropriate professional
    expertise; availability of liquidity sufficient to meet the Company's needs;
    the ability to adapt to changes resulting from acquisitions and divestitures
    and to effect cost reduction programs; and various other factors.
        Our Connectors & Switches business could be affected by the economic
    conditions in foreign markets, both those in which we currently participate,
    and those that we are trying to enter; the level of defense funding by
    domestic and foreign governments; and the cyclical nature of the industry.
        Our Defense Products & Services business could be affected by factors
    including the level of defense funding by domestic and foreign governments;
    our ability to receive contract awards; and our ability to develop and market
    products and services for customers outside of traditional markets.
        Our Pumps & Complementary Products business could be affected by factors
    including global economic conditions; governmental funding levels;
    international demand for fluid management products; the ability to
    successfully expand into new geographic markets; weather conditions; and
    continued demand for replacement parts.
        Our Specialty Products business could be affected by the cyclical nature
    of the transportation industries; strikes at major auto producers; and
    international demand for fluid management products.
        Forward-looking statements by their very nature are uncertain.  There can
    be no guarantee that any forward-looking statement will be fulfilled.
        The Company assumes no obligation to update forward-looking statements to
    reflect actual results or changes in or additions to the factors affecting
    such forward-looking statements.
        Reference is made to the Company's Form 10-K Annual Report for the year
    1998 and other of its documents filed with the Securities and Exchange
    Commission for additional information involving known and unknown risks,
    uncertainties and other factors.
        ITT Industries and its subsidiaries' press releases are available at no
    charge via fax and the Internet.  To receive releases by fax, call
    800-758-5804, extension 110006.  For ITT Industries' news on the Internet,
    visit or
    SOURCE  ITT Industries, Inc.

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    Company News On-Call:
    or fax, 800-758-5804, ext. 110006
    NOTE TO EDITOR: ITT Industries and its subsidiaries' press
    releases are available at no charge via fax and the Internet. To
    receive releases by fax, call 800-758-5804, extension 110006.
    For ITT Industries' news on the Internet, visit or
    CONTACT: Tom Glover of ITT Industries, 914-641-2160

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.


Jason Moss
tel +1 914-641-2030


Laurent Lawrence
tel +1 914-304-1809