ITT Reports Solid 2009 Fourth-Quarter and Full-Year Results; Achieves Record Cash Flow; Raises 2010 Guidance
Fourth-quarter earnings from continuing operations up 10 percent to
$1.06 per share, with revenue of $2.9 billion. Adjusted earnings from
continuing operations up 18 percent to $0.97 per share.
Full-year 2009 earnings from continuing operations of $3.54 per share,
with revenue of $10.9 billion. Adjusted earnings from continuing
operations of $3.78 per share.
Record 2009 cash from operations of $1.3 billion and free cash flow of
$1.1 billion, a 146 percent conversion of income from continuing
operations adjusted for non-cash special items.
Adjusted earnings per share 2010 guidance raised to a range of $3.90
WHITE PLAINS, N.Y. — (BUSINESS WIRE) — February 3, 2010 —
ITT Corporation (NYSE:
ITT) today reported 2009 fourth-quarter revenue
of $2.9 billion and income from continuing operations of $196 million,
or $1.06 per share. Excluding special items, income from continuing
operations for the quarter was $178 million, or $0.97 per share,
representing 18 percent year-over-year growth, as productivity benefits
and lower restructuring costs more than offset lower volumes.
For the full year 2009, ITT reported revenues of $10.9 billion and
income from continuing operations of $651 million, or $3.54 per share.
Excluding special items, income was $696 million, or $3.78 per share.
For the full year, free cash flow, representing cash from operations
before a net discretionary pension contribution and less capital
expenditures, was $1.1 billion, a 146 percent conversion of income from
continuing operations adjusted for non-cash special items.
“The strength of our well-balanced portfolio enabled us to achieve EPS
performance that was best in class for our multi-industry peer group. We
are very proud of our teams around the globe for delivering on our
commitments. We took important steps intended to position the company
for the long term by increasing our strategic investments and
accelerating our productivity initiatives while continuing to generate
strong free cash flow to invest in our future,” said Steve Loranger,
ITT’s chairman, president and chief executive officer.
The company also raised its full-year 2010 adjusted earnings per share
guidance from its previously announced forecast of $3.85 to $4.05 to a
new forecast of $3.90 to $4.10.
“We believe our innovative and essential products and services position
us well to grow at or above the markets we serve. We saw this play out
in 2009 with many key customer wins, and our outstanding achievements in
operational excellence enable our confidence to raise our outlook for
growth in 2010,” said Loranger. “For the long term, we believe we have
the right strategies in place to grow organically while we invest for
our future -- in categories that are adjacent to our core businesses and
in emerging markets that will drive sustainable growth.”
2009 Fourth-Quarter and Full-Year Business Segment Results
ITT Defense & Information Solutions (formerly Defense Electronics &
Fourth-quarter 2009 revenue for the Defense segment was $1.6 billion,
down one percent compared to the year-ago period, as lower tactical
radio volumes offset growth in service contracts and international
Night Vision revenues. Fourth-quarter operating income for the segment
grew to $207 million, up 10 percent on a comparable basis, driven by
strong productivity actions.
Full-year 2009 revenue for the segment was flat compared with 2008 at
$6.3 billion. For the full year, operating income for the segment was
$776 million, a seven percent improvement year-over-year, driven by
At the close of 2009, the Defense segment had a funded backlog of $5.2
billion that was nearly flat to the prior year with little change in
the mix of products and services.
During the first quarter of 2010, ITT announced a strategic
realignment of its Defense segment to enable stronger portfolio
positioning to accelerate new technology development in systems and
solutions, achieve a more coordinated market approach, and reduce
operational redundancies. The company’s Defense Electronics & Services
segment was renamed ITT Defense & Information Solutions. Its previous
organizational structure, comprising seven separate business units,
will be consolidated into three stronger technology platforms in 2010:
Electronic Systems, Geospatial Systems and Information Systems.
ITT’s Fluid Technology segment reported fourth-quarter 2009 revenue of
$924 million, down six percent on a year-over-year basis, and a 13
percent decline in organic revenue (defined as total revenue excluding
the impacts of foreign exchange and acquisition and divestiture
activity), due primarily to global weakness in Residential and
Commercial Water and lower revenues in North America from the
Industrial Process business that offset continued strength in the
municipal market. Fourth-quarter segment operating income was $104
million, up nine percent from the comparable prior-year period, driven
by strong productivity, lower restructuring and realignment costs and
favorable foreign exchange that more than offset lower volume.
For the full year, the segment revenue declined 12 percent to $3.4
billion, and organic revenue was down nine percent as stability in
municipal markets was offset by declines in industrial, residential
and commercial markets. The segment generated operating income of $393
million, down 16 percent on a comparable basis, as a result of lower
volume and higher pension expense, partially offset by strong
productivity and lower realignment costs.