-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Vjy2GsuDKCPeZTpi0fVTpRtQZ/nVd7GN3ONr4T/mUoMIaHF2lhAH1eooMC+QLDYe 9OpDD6PnP1NNEYIEf0Ak9g== 0000216228-98-000018.txt : 19980507 0000216228-98-000018.hdr.sgml : 19980507 ACCESSION NUMBER: 0000216228-98-000018 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980506 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ITT INDUSTRIES INC CENTRAL INDEX KEY: 0000216228 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLE PARTS & ACCESSORIES [3714] IRS NUMBER: 135158950 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-05627 FILM NUMBER: 98611249 BUSINESS ADDRESS: STREET 1: FOUR W RED OAK LANE CITY: WHITE PLAINS STATE: NY ZIP: 10604 BUSINESS PHONE: 9146412000 MAIL ADDRESS: STREET 1: FOUR W RED OAK LANE CITY: WHITE PLAINS STATE: NY ZIP: 10604 FORMER COMPANY: FORMER CONFORMED NAME: ITT CORP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: INTERNATIONAL TELEPHONE & TELEGRAPH CORP DATE OF NAME CHANGE: 19840321 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1998 TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 1-5627 ITT INDUSTRIES, INC. Incorporated in the State of Indiana 13-5158950 (I.R.S. Employer Identification Number) 4 West Red Oak Lane, White Plains, NY 10604 (Principal Executive Office) Telephone Number: (914) 641-2000 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes X No As of April 30, 1998, there were outstanding 118,445,259 shares of common stock ($1 par value per share) of the registrant. ITT INDUSTRIES, INC. TABLE OF CONTENTS
Page Part I. FINANCIAL INFORMATION: Item 1. Financial Statements: Consolidated Condensed Income Statements Three Months Ended March 31, 1998 and 1997 2 Consolidated Condensed Balance Sheets March 31, 1998 and December 31, 1997 3 Consolidated Condensed Statements of Cash Flows Three Months Ended March 31, 1998 and 1997 4 Notes to Consolidated Condensed Financial Statements 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations: Three Months Ended March 31, 1998 and 1997 8 Part II. OTHER INFORMATION: Item 6. Exhibits and Reports on Form 8-K 11 Signature 11 Exhibit Index 12
1 PART I. Item 1. FINANCIAL INFORMATION FINANCIAL STATEMENTS The following unaudited consolidated condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and, in the opinion of management, reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules. The Company believes that the disclosures made are adequate to make the information presented not misleading. Certain amounts in the prior periods' consolidated condensed financial statements have been reclassified to conform with the current period presentation. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company's 1997 Annual Report on Form 10-K. ITT INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED INCOME STATEMENTS (In millions, except per share) (unaudited)
Three Months Ended March 31, 1998 1997 Net sales $ 2,143.5 $ 2,166.6 ------- ------- Cost of sales 1,672.2 1,742.7 Selling, general, and administrative expenses 215.4 186.4 Research, development, and engineering expenses 121.0 126.0 Other operating expenses 10.3 8.2 ------- ------- Total costs and expenses 2,018.9 2,063.3 ------- ------- Operating income 124.6 103.3 Interest expense (39.1) (33.3) Interest income 6.6 3.4 Miscellaneous expense, net (.9) (.8) ------- ------- Income before income taxes 91.2 72.6 Income tax expense (35.6) (28.3) ------- ------- Net income $ 55.6 $ 44.3 ======= ======= Earnings Per Share: Net income Basic $ .47 $ .37 Diluted $ .46 $ .37 Cash dividends declared per common share $ .15 $ .15 __________ The accompanying notes to consolidated condensed financial statements are an integral part of the above statements.
2 ITT INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (In millions, except for shares and per share)
March 31, December 31, 1998 1997 (unaudited) Assets Current Assets: Cash and cash equivalents $ 160.1 $ 192.2 Receivables, net 1,473.6 1,252.4 Inventories, net 791.4 812.8 Other current assets 142.8 120.0 ------- ------- Total current assets 2,567.9 2,377.4 Plant, property, and equipment, net 1,906.1 2,024.3 Deferred U.S. income taxes 263.6 258.8 Goodwill, net 1,095.2 1,116.5 Other assets 430.8 443.5 ------- ------- $ 6,263.6 $ 6,220.5 ======= ======= Liabilities and Shareholders' Equity Current Liabilities: Commercial paper $ 1,025.0 $ 698.4 Accounts payable 726.5 848.3 Accrued expenses 896.0 884.3 Accrued taxes 218.2 161.5 Notes payable and current maturities of long-term debt 658.2 952.4 ------- ------- Total current liabilities 3,523.9 3,544.9 Pension and postretirement costs 932.0 938.5 Long-term debt 528.6 532.2 Deferred foreign, state and local income taxes 37.2 31.6 Other liabilities 401.3 351.0 ------- ------- 5,423.0 5,398.2 Shareholders' Equity: Cumulative Preferred Stock: Authorized 50,000,000 shares, no par value, none issued --- --- Common stock: Authorized 200,000,000 shares, $1 par value per share Outstanding 118,445,259 shares and 118,445,827 shares 118.4 118.4 Capital surplus 391.6 397.0 Accumulated other comprehensive income: Unrealized gain on investment securities 1.5 1.6 Cumulative translation adjustments 102.8 116.8 ------ ------ 104.3 118.4 Retained earnings 226.3 188.5 ------ ------ 840.6 822.3 ------- ------- $ 6,263.6 $ 6,220.5 ======= ======= __________ The accompanying notes to consolidated condensed financial statements are an integral part of the above balance sheets.
3 ITT INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (In millions) (unaudited)
Three Months Ended March 31, 1998 1997 Operating Activities Net income $ 55.6 44.3 Adjustments to net income: Depreciation 91.3 99.1 Amortization 17.1 10.9 Change in receivables, inventories, accounts payable, and accrued expenses (291.7) (170.7) Change in accrued and deferred taxes 61.8 43.2 Other, net (37.6) 26.4 ------ ------ Cash from (used for) operating activities (103.5) 53.2 ------ ------ Investing Activities Additions to plant, property, and equipment (60.1) (75.7) Proceeds from the sale of assets 130.8 2.3 Acquisitions (7.9) (7.6) Other, net .9 (2.4) ----- ----- Cash from (used for) investing activities 63.7 (83.4) ----- ----- Financing Activities Short-term debt, net 49.4 111.3 Long-term debt repaid (10.4) (121.1) Repurchase of common stock (13.6) (14.7) Dividends paid (17.8) (17.8) Other, net 7.6 8.9 ----- ------ Cash from (used for) financing activities 15.2 (33.4) ----- ------ Exchange Rate Effects on Cash and Cash Equivalents (7.5) 3.2 ----- ------ Decrease in cash and cash equivalents (32.1) (60.4) Cash and cash equivalents- beginning of period 192.2 121.9 ------ ------ Cash and cash equivalents- end of period $ 160.1 $ 61.5 ====== ====== Supplemental Disclosures of Cash Flow Information: Cash paid (received) during the period for: Interest $ 33.2 $ 27.0 ====== ====== Income taxes $ (10.1) $ (6.5) ====== ====== __________ The accompanying notes to consolidated condensed financial statements are an integral part of the above statements.
4 ITT INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (In millions, except per share, unless otherwise stated) 1) Receivables, net Receivables consist of the following:
March 31, December 31, 1998 1997 Trade $ 1,490.1 $ 1,265.8 Accrued for completed work 23.0 26.8 Less reserves (39.5) (40.2) -------- -------- $ 1,473.6 $ 1,252.4 ======== ======== 2) Inventories, net Inventories consist of the following:
March 31, December 31, 1998 1997 Finished goods $ 293.5 $ 352.4 Work in process 533.5 438.8 Raw materials 309.0 340.6 Less--reserves (136.9) (85.0) --progress payments (207.7) (234.0) ------- ------- $ 791.4 $ 812.8 ======= ======= 3) Plant, Property, and Equipment, net Plant, property, and equipment consist of the following:
March 31, December 31, 1998 1997 Land and improvements $ 108.1 $ 110.5 Buildings and improvements 663.2 688.7 Machinery and equipment 2,824.8 2,932.6 Construction work in progress 293.3 303.2 Other 508.2 495.4 -------- -------- 4,397.6 4,530.4 Less--accumulated depreciation and Amortization (2,491.5) (2,506.1) -------- -------- $ 1,906.1 $ 2,024.3 ======== ========
5 4) New Accounting Pronouncement In June of 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standard ("SFAS") 130, "Reporting Comprehensive Income", which is effective for financial statements for fiscal years beginning after December 15, 1997. SFAS 130 requires the disclosure of comprehensive income, which includes, in addition to net income, other comprehensive income consisting of unrealized gains and losses which bypass the traditional income statement and are recorded directly into a separate section of shareholders' equity on the balance sheet. The components of other comprehensive income for ITT Industries, Inc. consist of unrealized gains and losses relating to the translation of foreign currency financial statements, hedges of net foreign investments, and certain investment securities.
Comprehensive Income Three Months Ended March 31 1998 1997 Net income........................................$ 55.6 $ 44.3 Other comprehensive income: Foreign currency translation adjustments........ (15.0) 20.6 Unrealized losses on investment securities...... (.1) -- ----- ----- Other comprehensive income/(loss), before tax. (15.1) 20.6 Income tax related to other comprehensive income. 1.0 (3.1) ----- ----- Other comprehensive income, after tax..........(14.1) 17.5 Comprehensive income................ $ 41.5 $ 61.8 ===== =====
6 5) Calculation of Earnings Per Share
Three Months Ended March 31, 1998 1997 BASIC BASIS Net income $ 55.6 $ 44.3 ----- ----- Average common shares outstanding 118.4 118.4 ----- ----- Earnings Per Share $ .47 .37 ==== ==== DILUTED BASIS Net income $ 55.6 $ 44.3 ----- ----- Average common shares outstanding 118.4 118.4 Add: Stock options 3.2 2.2 ----- ----- Average common shares outstanding on a diluted basis 121.6 120.6 ----- ----- Earnings Per Share $ .46 $ .37 ==== ====
6) Subsequent Event On April 13, 1998, the Company completed the sale of its Barton fluid measurement business to Barton Instrument Systems, L.L.C., an affiliate of American Commercial Holdings, Inc. of Lexington, Kentucky. The cash proceeds from the sale were $31.4 million. The Barton unit produces process measurement instruments and systems, most notably for the oil and gas industry. It had 1997 sales of approximately $78 million, and employs 550 people at five locations in the U.S., Canada, and Great Britain. 7 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations Three months ended March 31, 1998 compared with three months ended March 31, 1997 Net income of $55.6 million, or $.46 per diluted share, compared with net income of $44.3 million, or $.37 per diluted share, reported in the first quarter of 1997. The increase in net income was attributable to higher earnings from all three of the Company's major businesses, the absence of losses on companies held for disposition, and the recognition of a $20.0 million pre-tax gain on the sale of the Company's Precision Die Casting (PDC) business. The previous factors more than offset higher interest expense and $20.1 million of pre-tax accruals for anticipated legal expenses and losses on the divestitures of non-core businesses. Net sales for the first quarter of 1998 declined slightly from the first quarter of 1997. The decline in sales was mainly due to the divestitures of the semiconductors unit and selected businesses of the automotive unit and unfavorable foreign exchange translation, which more than offset sales increases from the acquisitions of Goulds Pumps and Kaman Sciences and volume gains at the Automotive and Defense & Electronics units. Selling, general and administrative expenses of $215.4 million compared to $186.4 million last year. The increase from last year was primarily due to the acquisition of Goulds Pumps. Operating margin of 5.8% improved significantly from 4.8% last year due to continuing operational rationalization and cost cutting as well as the substitution of higher margin acquisitions for lower margin divestitures. Operating profit was $124.6 million in the first quarter of 1998, compared to $103.3 million last year. Interest expense for the first quarter of 1998 was $39.1 million, compared with $33.3 million in the first quarter of 1997. The increase in interest expense was due to a higher average level of debt which more than offset a lower average interest rate resulting from a debt restructuring. Interest income was $6.6 million in the current quarter, compared to $3.4 million in the prior quarter, a result of maintaining higher cash balances. The effective income tax rates for both quarters was 39%. Income tax expense increased to $35.6 million due to higher pre-tax earning. Business Segments - Unaudited sales and operating income of the Company's business segments were as follows for the three months ended March 31, 1998, and 1997 (in millions):
Three months ended Defense & Fluid Dispositions Corporate Grand March 31,1998 Automotive Electronics Technology &Other & Other Total - ---------------------------------------------------------------------------------- Net Sales $1,192.7 $473.6 $472.4 $4.8 $ - $2,143.5 Operating Income: Before non- recurring items 75.5 30.0 35.1 0.6 (16.5) 124.7 Non-recurring items 20.0 --- --- --- (20.1) (0.1) - ----------------------------------------------------------------------------------- Total operating income $ 95.5 $ 30.0 $ 35.1 $0.6 $(36.6) $ 124.6
8 [CAPTION] Three months ended Defense & Fluid Dispositions Corporate Grand March 31,1997 Automotive Electronics Technology & Other & Other Total - ----------------------------------------------------------------------------------- Net Sales $1,393.0 $409.3 $307.5 $56.8 $ --- $2,166.6 Operating Income: Before non- recurring items 74.0 25.1 23.9 (4.7) (15.0) 103.3 Non-recurring items ----- ----- ----- ----- ---- ----- - ----------------------------------------------------------------------------------- Total operating income $ 74.0 $ 25.1 $ 23.9 $(4.7) $(15.0) $ 103.3
Automotive's revenues decreased 14.4% from the prior year mainly due to divestitures and unfavorable foreign currency translation, which more than offset volume gains for the brakes and switches businesses. Operating income, excluding a non-recurring $20.0 million pre-tax gain on the sale of PDC, was up $1.5 million from the prior year, providing an improved margin of 6.3%, compared to 5.3% in the prior year. The improvement in operating margin was mainly due to continued cost reductions and the divestiture of less profitable operations, which more than offset lower prices. ITT Defense & Electronics' revenue was up 15.7% from the prior year principally due to stronger international sales and the acquisition of Kaman Sciences, now called ITT Systems & Sciences. Operating income was 19.5% higher in the 1998 period mainly due to higher volume and productivity improvements. ITT Fluid Technology's 1998 first quarter sales increased 53.6% compared to the first quarter of 1997. The improvement was primarily due to the acquisition of Goulds Pumps in May 1997, which more than offset poor market conditions in Asia, weak demand in the petrochemical and mining segments, and unfavorable foreign currency translation. Operating income increased $11.2 million primarily due to higher volumes resulting from the Goulds Pumps acquisition. Liquidity and Capital Resources Divestiture proceeds of $130.8 million and net borrowings of $39 million were used primarily for operating activities of $103.5 million, capital expenditures of $60.1 million, acquisitions of $7.9 million, dividend payments of $17.8 million and repurchases of common stock of $13.5 million. Cash Flows: Cash used for operating activities in the first quarter of 1998 was $103.5 million, a decrease of $156.7 million from the first quarter of 1997. The increase in working capital requirements in the first quarter of 1998 was largely due to the timing of the fiscal close of the quarter and the collection of a large single payment at Automotive, as well as differences in advance payments at Defense & Electronics. The increase in cash flows from the change in accrued and deferred taxes in the first quarter of 1998 is mostly due to differences in the timing of tax payments and receipts of refunds. The decrease in other, net operating activities was mainly due to prepayments for insurance and other items, and a larger reclassification of gains from asset sales, resulting primarily from the sale of PDC, to proceeds from the sale of assets. Debt and Credit Facilities: External debt at March 31, 1998 was $2.21 billion, compared with $2.18 billion at December 31,1997. Cash and cash equivalents were $160.1 million at March 31, 1998, compared to $192.2 million at year end 1997. The maximum amount of borrowing available under the Company's revolving credit agreements at March 31, 1998 was $1.5 billion. Additions to Plant, Property and Equipment: Capital expenditures during the first quarter of 1998 were $60.1 million, a decrease of $15.6 million from the first quarter of 1997. Most of the decrease was at Automotive. Acquisitions: During the first quarter of 1998, the Company acquired two small companies - one at Defense & Electronics and one at Fluid Technology. 9 Divestitures: During the first quarter of 1998, the Company had two Automotive-related divestitures - PDC and a Plant at Nuevo Laredo, Mexico, which generated most of the proceeds from the sale of assets of $130.8 million. Strategic Review On March 18, 1998, ITT Industries, Inc. announced that it was putting much of its automotive unit under strategic review. The strategic review consists of an examination of all strategic alternatives, including the possible sale of one or more major lines of business. The lines of business originally involved in this review were those involved in the engineering, manufacturing and marketing of automotive brakes, chassis modules and electrical systems in the U.S. and abroad. The automotive switch business was also added to this review. The total 1997 sales of the operations under review were approximately $4.1 billion. Proceeds from any sale would be used to finance share repurchases, pay down debt, further internal and/or external growth of core businesses, or some combination of those uses. The Company expects to announce the status of the strategic review in the summer. The strategic review does not include the automotive fluid handling, friction and shock absorber businesses. Forward-Looking Statements Certain material presented herein consists of forward-looking statements which 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. Such factors include those set forth in Item 1. Business and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements in the ITT Industries, Inc. Form 10-K Annual Report for the fiscal year ended December 31, 1997 and other of its filings with the Securities and Exchange Commission. 10 Part II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) See the Exhibit Index for a list of exhibits filed herewith. (b) ITT Industries did not file any Form 8-K Current Reports during the quarter for which this Report is filed. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ITT INDUSTRIES, INC. (Registrant) By /s/ Richard J. Townsend -------------------------------- Richard J. Townsend Vice President and Controller (Principle accounting officer) May 1, 1998 (Date) 11 EXHIBIT INDEX
Exhibit No. Description Location (2) Plan of acquisition, reorganization, arrangement, liquidation or Succession None (3) Articles of Incorporation and by-laws None (4) Instruments defining the rights of security holders, including Indentures None (10) Material contracts None (12) Statements re: computation of ratios Calculation of ratio of earnings to total fixed charges Filed Herewith (15) Letter re: unaudited interim financial information None (18) Letter re: change in accounting principles None (19) Report furnished to security holders None (22) Published report regarding matters submitted to vote of security holders None (23) Consents of experts and counsel None (24) Power of attorney None (27) Financial Data Schedule Filed Herewith (99) Additional Exhibits None
13 EXHIBIT 12 ITT INDUSTRIES, INC. AND SUBSIDIARIES CALCULATION OF RATIOS OF EARNINGS TO TOTAL FIXED CHARGES AND CALCULATION OF EARNINGS TO TOTAL FIXED CHARGES AND PREFERRED DIVIDEND REQUIREMENTS (Dollars in millions)
Three Months Ended March 31, Years Ended December 31, ------------------ ------------------------------------ 1998 1997 1997 1996 1995 1994 1993 ------ ------- ------ ----- ----- ----- ---- Earnings: Income from continuing operations $ 55.6 $ 44.3 $ 108.1 $ 222.6 $ 20.7 $201.6 $134.8 Add(deduct): Adjustment for distributions in excess of (less than) undistributed equity earnings and losses a) .4 .5 1.3 1.9 .6 -- (2.6) Income taxes 35.6 28.3 72.7 148.4 50.2 147.5 65.1 Amortization of interest capitalized .1 .2 .4 .9 2.5 .7 3.9 ---- ---- ---- ----- --- ----- - 91.7 73.3 182.5 373.8 74.0 349.8 201.2 ----- ---- ----- ----- ---- ----- -- Fixed Charges: Interest and other financial charges 39.1 33.3 135.4 169.0 175.2 115.2 154.0 Interest factor attributable to rentals b) 9.1 7.7 36.3 30.9 29.0 22.0 24.2 ----- ---- ----- ----- ---- ----- -- 48.2 41.0 171.7 199.9 204.2 137.2 178.2 ----- ---- ----- ----- ---- ----- -- Earnings, as adjusted, from continuing Operations $139.8 $114.3 $354.2 $573.7 $278.2 $487.0 $379.4 ===== ===== ===== ===== ===== ===== == Fixed Charges: Fixed charges above $ 48.2 $ 41.0 $171.7 $199.9 $204.2 $137.2 $178.2 Interest capitalized -- -- 1.1 1.1 2.9 6.8 8.0 ----- ---- ----- ----- ---- ----- -- Total fixed charges 48.2 41.0 172.8 201.0 207.1 144.0 186.2 Dividends on preferred stock (pre-income tax basis) c) -- -- -- -- 23.4 47.5 50.0 ----- ---- ----- ----- ---- ----- -- Total fixed charges and preferred dividend requirements $ 48.2 $ 41.0 $172.8 $201.0 $230.5 $191.5 $236.2 ===== ===== ===== ===== ===== ===== == Ratios: Earnings, as adjusted, from continuing Operations to total fixed charges 2.90 2.79 2.08 2.85 1.34 3.38 2.04 ===== ===== ===== ===== ===== ===== == Earnings, as adjusted, from continuing Operations to total fixed charges and Preferred dividend requirements 2.90 2.79 2.08 2.85 1.21 2.54 1.61 ===== ===== ===== ===== ===== ===== == _________
Notes: a)The adjustment fordistributions in excess of (less than) undistributed equity earnings and losses represents the adjustment to income for distributions in excess of (less than) undistributed earnings and losses of companies in which at least 20% but less than 50% equity is owned. b)One-third of rental expense is deemed to be representative of interest factor in rental expense. c)The dividend requirements on preferred stock have been determined by adding to the total preferred dividends an allowance for income taxes, calculated at the effective income tax rate. 13 EX-27 2 ARTICLE 5 FDS FOR 1ST QUARTER 10-Q
5 EXHIBIT 27 ITT INDUSTRIES, INC. AND SUBSIDIARIES FINANCIAL DATA SCHEDULE (In millions) This schedule contains summary financial information extracted from the March 31, 1998 Financial Statements included in Form 10-Q and is qualified in its entirety by reference to such Financial Statements. COMMERCIAL AND INDUSTRIAL COMPANIES 1,000 3-MOS DEC-31-1998 MAR-31-1998 160,100 0 1,513,100 39,500 791,400 2,567,900 4,397,600 2,491,500 6,263,600 3,523,900 528,600 0 0 118,400 722,200 6,263,600 2,143,500 2,143,500 1,672,200 1,793,200 225,700 1,100 39,100 91,200 35,600 55,600 0 0 0 55,600 .47 .46
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