ITT Forecasts Strong 2008, Expects Another Year of Double-Digit Earnings Growth from Continuing Operations
November 13 2007 - 8:00AM
PR Newswire (US)
- Full-year 2008 earnings, excluding special items, estimated to be
$3.95 to $4.10 per share WHITE PLAINS, N.Y., Nov. 13 /PRNewswire/
-- ITT Corporation (NYSE:ITT) today announced its full-year 2008
earnings forecast in the range of $3.95 to $4.10 per share,
excluding special items, reflecting anticipated 12 to 17 percent
earnings growth compared to the midpoint of ITT's 2007 full-year
guidance. The company expects top-line revenue to be $9.5 billion
to $9.7 billion in 2008, approximately 10 percent higher than
anticipated revenue for the current year. Revenue growth
expectations include nearly eight percent organic growth and
full-year revenues of the recently acquired International Motion
Control (IMC), a global leader in the design and manufacture of
motion and flow control components. ITT reaffirmed its current year
earnings guidance from continuing operations, excluding special
items, of $3.50-$3.53 per share on projected revenue of $8.75
billion. "We are expecting 2007 to finish strong and anticipate
this year's performance will provide a springboard for another
exciting year of growth and continued operational improvements for
our company in 2008," said Steve Loranger, chairman, president and
chief executive officer of ITT. "Our guidance reflects a high
degree of confidence in our leadership team and the company's core
businesses, which we believe are well-positioned for success over
the long term." Loranger added the company has been effective at
positioning its portfolio - in terms of end markets and geographies
served - to be able to balance a moderating U.S. economy and
capitalize on strength in international markets. 2008 Segment
Guidance Defense Electronics & Services ITT's Defense segment
expects revenues to grow eight to nine percent to $4.35 billion to
$4.40 billion in 2008, led by continued growth in the Advanced
Engineering & Sciences and Systems businesses. Operating
margins, excluding restructuring costs, are expected to be slightly
higher than 2007 estimates. Operating margins for the segment are
projected to be in the 12.7 to 12.9 percent range. ITT's 2008
guidance does not include the potential impact of the company's
pending acquisition of EDO Corporation, which will be voted on by
EDO shareholders on Dec. 18. Fluid Technology The Fluid Technology
segment is expecting revenue growth of seven to eight percent in
2008 to $3.68 billion to $3.73 billion, and operating margin
expansion of approximately 45 basis points. The segment's operating
margin, excluding restructuring costs, is expected to be in the
range of 13.9 to 14.2 percent. ITT's estimates account for a
constraint of 20 basis points due to the unfavorable foreign
currency impact of a weak U.S. dollar. Motion & Flow Control
Top-line revenue in the Motion & Flow Control segment is
expected to increase 18 to 22 percent to $1.53 billion to $1.58
billion in 2008, largely attributable to the integration of IMC
into the group. The segment's operating margin, excluding
restructuring costs, is expected to expand 50 basis points to 14.9
to 15.1 percent, after the amortization of intangibles related to
the IMC acquisition. Change in Reporting Presentation Planned ITT
has historically presented restructuring costs as a "special item"
in its delivery of adjusted earnings per share (EPS) results to
investors. Beginning in 2008, the company will discontinue this
practice. Restructuring costs will no longer be treated as a
special item and will be presented as part of ITT's total adjusted
EPS figure. "In a dynamic multi-industry business like ours,
restructuring is a variable, but ongoing activity," said Denise
Ramos, chief financial officer of ITT. "For this reason, we decided
to no longer classify restructuring costs as a special or one-time
item. We believe the revised presentation of adjusted EPS will
provide investors with a more complete view of our overall
performance and is consistent with the company's track record of
transparent reporting of results." To illustrate this change, ITT's
2008 adjusted earnings forecast is $3.80 to $3.95 per share from
continuing operations including anticipated restructuring costs of
$40 million. On a comparable basis, ITT's 2007 earnings are
estimated to be $3.30 to $3.33 per share including expected
restructuring costs of $55 million. This represents anticipated
adjusted earnings growth of 15 to 19 percent in 2008 when compared
to the 2007 guidance midpoint. Analyst Event Today ITT's senior
management will host an investor event today beginning at 1:00 p.m.
Eastern Standard Time in New York City to discuss the company's
strategic objectives and review the outlook for 2008. The entire
event can be monitored live via webcast at the following address on
the company's Web site: http://www.itt.com/ir. A replay of the
briefing will be available on the Internet for one year, until Nov.
13, 2008. About ITT Corporation ITT Corporation
(http://www.itt.com/) supplies advanced technology products and
services in several growth markets. ITT is a global leader in water
and fluid transport, treatment and control technology. The company
plays a vital role in international security with communications
and electronics products; space surveillance and intelligence
systems; and advanced engineering and services. It also serves a
number of growing markets -- including marine, transportation and
aerospace -- with a wide range of motion and flow control
technologies. Headquartered in White Plains, N.Y., the company
employs approximately 35,000 people and generated $7.8 billion in
2006 sales. Safe Harbor Statement Certain material presented herein
includes forward-looking statements intended to qualify for the
safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995 ("the Act"). These forward- looking
statements include statements that describe the Company's business
strategy, outlook, objectives, plans, intentions or goals, and any
discussion of future operating or financial performance. Whenever
used, words such as "anticipate," "estimate," "expect," "project,"
"intend," "plan," "believe," "target" and other terms of similar
meaning are intended to identify such forward-looking statements.
Forward-looking statements are uncertain and to some extent
unpredictable, and involve known and unknown risks, uncertainties
and other important factors that could cause actual results to
differ materially from those expressed in, or implied from, such
forward-looking statements. Factors that could cause results to
differ materially from those anticipated by the Company include
general global economic conditions, decline in consumer spending,
interest and foreign currency exchange rate fluctuations,
availability of commodities, supplies and raw materials,
competition, acquisitions or divestitures, changes in government
defense budgets, employment and pension matters, contingencies
related to actual or alleged environmental contamination, claims
and concerns, intellectual property matters, personal injury
claims, governmental investigations, tax obligations, and changes
in generally accepted accounting principles. Other factors are more
thoroughly set forth in Item 1. Business, Item 1A. Risk Factors,
and Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations - Forward-Looking Statements in
the ITT Corporation Annual Report on Form 10-K for the fiscal year
ended December 31, 2006, and other of its filings with the
Securities and Exchange Commission. The Company undertakes no
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise. DATASOURCE:
ITT Corporation CONTACT: Andy Hilton, +1-914-641-2160, Web site:
http://www.itt.com/ http://www.itt.com/ir
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