ITT Industries 2Q revenue up 12%, EPS up 11%
ITT Industries reported second quarter 2004 net income of $112 million, up 12% including the net benefit of special items. Diluted earnings per share (EPS) for the quarter was $1.18, up $0.12 per share or 11% from reported EPS in the second quarter 2003.
WHITE PLAINS, NY, July 23, 2004 (PRNewswire-FirstCall) -- ITT Industries Inc. today announced second quarter 2004 net income of $112 million, up 12% including the net benefit of special items. Diluted earnings per share (EPS) for the quarter, including the net benefit of special items, was $1.18, up $0.12 per share or 11% from reported EPS in the second quarter 2003.
"The strong second quarter, with double digit earnings and organic revenue growth, makes this the third consecutive quarter to show double digit organic revenue growth at ITT," said Steve Loranger, president and Chief Executive Officer of ITT Industries. Loranger was named to his position on June 28, succeeding Lou Giuliano who remains as non-executive chairman of the board.
"With our current business mix and a seasoned management team in place, we see many long-term growth opportunities ahead. In Defense, our products and technical services are right in line with the priorities of our primary customers in the US and allied nations. Our water and wastewater businesses are well-positioned to provide complete treatment solutions for customers throughout the world.
"Our Electronic Components business continues to show improvement, with orders up 27% over the period last year and an expectation of revenue and margin growth as market conditions continue to improve, and the Leisure Marine and Motion Control businesses continue to gain market share through new product introductions and operational excellence."
Loranger added that ITT was "seeing positive signs in the economy, and our orders are ahead of last year going into the second half of 2004. Combined with our strong first half performance, we now expect to see full year EPS near the top of the range of $4.40-$4.50."
Highlights for ITT's Fluid Technology unit included:
* Second quarter 2004 Fluid Technology revenues were $650.9 million, up $80.3 million or 14% from the second quarter 2003, driven by water/wastewater and the industrial pump group, recent acquisitions and the positive impact of foreign currency translation. Organic revenue growth in the segment was 5%. Segment operating income was $75.7 million, including the impact of restructuring costs. Start-up costs of acquisitions and foreign currency translation/transactionimpacted the segment's margin by 100 basis points.
* The company is progressing with its strategy of providing total system solutions in water and wastewater treatment, with significant recent contract wins in North America, Europe and the Middle East. Further growth is anticipated with the introduction of the company's breakthrough membrane bioreactor (MBR) technology in the wastewater treatment market, combining diffused aeration and biological treatment with a second stage of membrane filtration. The new MBR system offers greater energy efficiency and ease of use, and is a more cost-effective way for municipalities to meet new stricter effluent standards than existing MBR systems.
* The integration of the recently acquired WEDECO business is progressing, with strengthening order activity recorded in the second quarter. Most significantly, WEDECO was chosen to provide a UV advanced oxidation treatment system for groundwater contaminated with rocket fuel additive in California, and was selected to supply UV and ozone treatment systems for an 80 million gallon per day advanced water treatment system in Arizona.
ITT Industries Inc. supplies advanced technology products and services in key markets including: electronic interconnects and switches; defense communication, opto-electronics, information technology and services; fluid and water management and other specialty products. Headquartered in White Plains, NY, the company generated $5.63 billion in 2003 sales.