ITT Announces Names of Companies That Will Result from Spinoffs of Water and Defense Businesses
July 14 2011 - 9:15AM
Business Wire
ITT Corporation (NYSE: ITT) today announced the future names for
its water technology and services business and its Defense &
Information Solutions segment, which will become standalone
companies following the completion of a previously announced
separation plan. Upon completion of the spinoffs, the future water
company will be named Xylem and the future defense company
will be named ITT Exelis. ITT's core industrial business
will continue under the ITT Corporation name.
"We are pleased to announce the names of these new companies, as
this represents an important step forward in our transformation,”
said Steve Loranger, chairman, president and chief executive
officer of ITT. “The names Xylem and ITT Exelis communicate the
strength and unique positioning of our future businesses. We are
confident that these new businesses will emerge as leaders in their
respective industries and firmly believe that ITT Corporation,
Xylem and ITT Exelis are all well positioned to create value for
shareholders."
Future water company will be named Xylem
Upon completion of the planned separation, the future water
company will be named Xylem ('zī-ləm) and will consist of the Water
& Wastewater (including wastewater transport; biological,
filtration and disinfection treatment and analytics), Residential
& Commercial Water and Flow Control businesses. The name Xylem,
derived from classical Greek, is the tissue that transports
water in plants. It signifies the company's unique position in
the marketplace as a leading equipment and service provider of
a broad product line that addresses the full cycle of water –
from collection, distribution and use to the return of water to the
environment. Xylem also highlights the engineering efficiency of
our water-centric business by linking it with the best water
transportation of all -- that which occurs in nature.
Future defense company will be named ITT Exelis
Following completion of the planned separation, the future
defense company will be named ITT Exelis (ik-'sel-əss) and will be
a leader in Command, Control, Communications, Computers,
Intelligence, Surveillance and Reconnaissance (C4ISR) related
products and systems and information and technical services,
supplying military, government and commercial customers in the
United States and globally. ITT Exelis is an energetic name that is
derived from the word “excel,” which is rooted in “ex,” meaning
“out in front” or “beyond.” The name ITT Exelis signifies the
expeditionary spirit, exceptional foresight and strong commitment
to proactively anticipating and adapting solutions to our
customers’ most critical problems.
ITT Corporation to retain current name
Following completion of the planned separation, ITT Corporation
will retain the current corporate name, logo and “Engineered for
life” company tagline. ITT Corporation will be a global specialist
in the engineering and manufacturing of critical components that
provide highly customized solutions for its customers. The company
will be a leader in attractive niche markets such as
harsh-environment connectors, aerospace actuation and valves,
friction brake pads, railway equipment and industrial process
applications. The strong reputation of the ITT name and its
“Engineered for life” tagline represent the company’s ongoing focus
on creating an enduring impact on the world through the focused
application of engineering expertise to key industries that
underpin the modern way of life.
Companies intend to list on the New York Stock
Exchange
As previously announced, ITT will execute tax-free spinoffs to
shareholders of its water technology and services business and its
Defense & Information Solutions segment. ITT shareholders will
own shares in all three corporations following the completion of
the transaction. ITT Corporation will continue to trade on the New
York Stock Exchange, under the symbol "ITT.” Both companies intend
to have their common stock listed on the New York Stock Exchange.
Xylem intends to list under the symbol “XYL” and ITT Exelis intends
to list under the symbol “XLS.” Until completion of the spinoffs,
ITT Corporation will continue to operate with the existing segment
structure and division names. Xylem and ITT Exelis plan to unveil
their new logos and further information on their new brands at a
later date.
Forward-Looking and Cautionary Statements
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. These forward-looking statements include, but are not limited
to, statements about the separation of ITT Corporation (the
“Company”) into three independent publicly-traded companies (the
“companies”), the terms and the effect of the separation, the
nature and impact of such a separation, capitalization of the
companies, future strategic plans and other statements that
describe the companies’ 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 or implied in, or reasonably inferred from, such
forward-looking statements. Factors that could cause results to
differ materially from those anticipated include, but are not
limited to: economic, political and social conditions in the
countries in which we conduct our businesses; changes in U.S. or
International government defense budgets; decline in consumer
spending; sales and revenues mix and pricing levels; availability
of adequate labor, commodities, supplies and raw materials;
interest and foreign currency exchange rate fluctuations and
changes in local government regulations; competition, industry
capacity & production rates; ability of third parties,
including our commercial partners, counterparties, financial
institutions and insurers, to comply with their commitments to us;
our ability to borrow or to refinance our existing indebtedness and
availability of liquidity sufficient to meet our needs; changes in
the value of goodwill or intangible assets; our ability to achieve
stated synergies or cost savings from acquisitions or divestitures;
the number of personal injury claims filed against the companies or
the degree of liability; uncertainties with respect to our
estimation of asbestos liability exposures, third-party recoveries
and net cash flow; our ability to effect restructuring and cost
reduction programs and realize savings from such actions;
government regulations and compliance therewith, including
Dodd-Frank legislation; changes in technology; intellectual
property matters; governmental investigations; potential future
employee benefit plan contributions and other employment and
pension matters; contingencies related to actual or alleged
environmental contamination, claims and concerns; changes in
generally accepted accounting principles; and other factors set
forth in our Annual Report on Form 10−K for the fiscal year ended
December 31, 2010 and our other filings with the Securities and
Exchange Commission. In addition, there are risks and uncertainties
relating to the planned tax-free spinoffs of our water related
businesses and our Defense & Information Solutions segment,
including the timing and certainty of the completion of those
transactions, whether those transactions will result in any tax
liability, the operational and financial profile of the Company or
any of its businesses after giving effect to the spinoff
transactions, and the ability of each business to operate as an
independent entity.
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