-----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, Fb27kiftJrHSU8JrH1z/mHWnFyRWEqnkEIzsPizlvc1t6syoypFC38ls/AyzOxO5 opXTBsC8RcMhsw/fxeSLkw== 0001275287-06-005507.txt : 20061027 0001275287-06-005507.hdr.sgml : 20061027 20061027070015 ACCESSION NUMBER: 0001275287-06-005507 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061027 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061027 DATE AS OF CHANGE: 20061027 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ITT CORP CENTRAL INDEX KEY: 0000216228 STANDARD INDUSTRIAL CLASSIFICATION: PUMPS & PUMPING EQUIPMENT [3561] IRS NUMBER: 135158950 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05672 FILM NUMBER: 061167212 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 INDUSTRIES INC DATE OF NAME CHANGE: 19951220 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 8-K 1 ii7657.txt FORM 8-K ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): October 27, 2006 ITT CORPORATION (Exact name of registrant as specified in its charter) Indiana 1-5672 13-5158950 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 4 West Red Oak Lane White Plains, New York 10604 (Address of principal (Zip Code) executive offices) Registrant's telephone number, including area code: (914) 641-2000 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION ITEM 7.01 REGULATION FD DISCLOSURE Attached hereto as Exhibit 99.1 and incorporated by reference herein is information on the results of operations for ITT Corporation for the third quarter 2006, the Company's increased fiscal year 2006 earnings per share from continuing operations and revenue guidance and other forward-looking statements relating to 2006 as presented in a press release dated October 27, 2006. This information shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. A copy of this press release is attached and incorporated by reference herein as Exhibit 99.1. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS (d) Exhibits 99.1 Press release dated October 27, 2006. 2 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 hereunto duly authorized. ITT CORPORATION By: /s/ Kathleen S. Stolar ----------------------------- Kathleen S. Stolar Its: Vice President, Secretary and Associate General Counsel Date: October 27, 2006 3 EX-99.1 2 ii7657ex991.txt EXHIBIT 99.1 Exhibit 99.1 ITT REPORTS THIRD QUARTER 2006 EPS OF $0.77; ANNOUNCES $1 BILLION SHARE REPURCHASE PROGRAM; RAISES FULL-YEAR GUIDANCE FROM CONTINUING OPERATIONS * Earnings per share up 15 percent excluding special items (up 18 percent excluding SFAS-123R). * Third quarter revenue up 15 percent to $2.0 billion on strong growth in all segments; organic revenue up 13 percent; strong cash performance. * Net impact of special items, including $0.03 per share results from Switches business (moved to discontinued operations), is zero. * ITT today announces a $1 billion share repurchase program. * Company raises FY 2006 earnings guidance after adjusting for the impact of moving the Switches business to discontinued operations. WHITE PLAINS, N.Y., Oct. 27 /PRNewswire-FirstCall/ -- ITT Corporation (NYSE: ITT) today reported third quarter 2006 net income of $143.5 million or $0.77 per share. The net impact of special items, comprising restructuring, tax settlements and discontinued operations, is zero. Excluding special items in 2005 and 2006, 2006 third quarter earnings from continuing operations grew 15 percent or $0.10 per share over the third quarter 2005. Excluding the $(0.02) per share impact of the adoption of SFAS-123R, earnings for the quarter grew 18 percent compared to the third quarter of 2005. Third quarter 2006 revenue was $2.0 billion, up 15 percent over the same period last year, with organic revenue growth of 13 percent. "We are very pleased with our performance in the third quarter, with solid growth in organic revenue, earnings, and cash flow," said Steve Loranger, Chairman, President and Chief Executive Officer. "Our management team is continuing to deliver double-digit organic growth, reflecting the strength of our market positions, our ongoing focus on new product development, a balanced portfolio of businesses, and overall customer satisfaction." "This revenue growth trend has continued now for several years, but we never take it for granted," Loranger said. "We are constantly listening to our customers and looking for new ways to anticipate their needs and deliver reliable solutions. This is an integral part of the ITT Management System, and our results this quarter and this year speak to its importance in the way we manage the company." 2006 Outlook and Beyond "We are very pleased with the strong performance we have seen this year," Loranger added. "We are raising our full-year earnings guidance as a result." ITT now forecasts full year 2006 earnings from continuing operations, excluding special items, will be in a range of $2.88 to $2.91 per share, up 13-14 percent compared to full year 2005, including the estimated $(0.09) per share impact from the adoption of SFAS-123R. Excluding the impact of the adoption of SFAS-123R, the outlook for full year 2006 earnings from continuing operations excluding special items would be up 16-17 percent. The new guidance reflects the move of the Switches business, which is in the process of being sold, to discontinued operations. "Today we announced a $1 billion share repurchase program that is consistent with ITT's commitment to a balanced and disciplined capital allocation process," said George E. Minnich, Senior Vice President and Chief Financial Officer. "Our capital priorities are centered on those investments necessary to grow our businesses organically and through acquisitions, while also providing cash returns to shareholders. With our strong balance sheet and robust cash flow generation, we continue to support our growth priorities while returning additional cash to shareholders through the repurchase program." In other action, the Board of Directors of ITT Corporation declared an $0.11 per share dividend for the fourth quarter of 2006. The dividend is payable on January 1, 2007 to shareholders of record on November 17, 2006. Primary Business Results Defense Electronics & Services * ITT's Defense Electronics & Services segment reported third quarter 2006 revenues of $957.4 million, up 19 percent, over the same period last year, led by increases in the Aerospace/Communications, Night Vision and Advanced Engineering and Sciences businesses. * Higher volume, better yields and contract performance drove third quarter operating results. Third quarter operating income for the segment was $112.6 million, including the impact of restructuring. Excluding restructuring, operating income was up 17 percent in the quarter to $113.6 million over the comparable period in 2005. * The company saw strong order growth in the third quarter, with orders up 28 percent over the same quarter of 2005. Fluid Technology * Third quarter 2006 Fluid Technology revenue was $780.3 million, up $85.8 million or 12 percent; organic revenues grew 7 percent over the same period in 2005, led by the Water and Wastewater businesses. Operating income was $97.8 million for the third quarter, including the impact of restructuring. Excluding restructuring, third quarter operating income was up 15 percent to $103.4 million. * Operating margins, excluding restructuring, grew by 40 basis points in the quarter, to 13.3 percent as a result of ongoing operational and lean initiatives. * Total orders for the third quarter were up 19 percent and organic orders were up 15 percent compared to the third quarter of 2005. Motion & Flow Control * 2006 third quarter revenues for ITT's Motion & Flow Control segment were $167.1 million, up 11 percent from the third quarter last year. * 2006 third quarter operating income for the segment declined to $23.7 million, including the impact of restructuring. Excluding restructuring, operating income for this segment was $25.1 million, down 16 percent from the same quarter in 2005. The decline in operating income resulted from the costs of factory relocations and increases in the cost of certain specialty materials. * During the third quarter the company completed the acquisition of aerospace pump manufacturer SOTA Corporation, which will become part of the Aerospace Controls value center. SOTA strengthens the company's ability to compete as an integrator of small fluid management systems used on aircraft. Electronic Components * The process to sell Electronic Components' Switches business is progressing, and presentations to prospective buyers have commenced. As a result, the Switches business has been moved to discontinued operations effective with the third quarter results. * 2006 third quarter revenues for the Electronic Components segment were $99.9 million, up 16 percent over the same period in 2005. Organic revenue grew 15 percent, due to strong performance in the transportation, industrial and military markets. * Operating income for the third quarter was $10.0 million. Excluding restructuring, operating income was up 107 percent over the third quarter last year to $11.2 million. Operating margins, excluding restructuring, grew 490 basis points compared to the third quarter of 2005, primarily driven by strong demand in the industrial market and continuing operational improvements. 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 the transport, treatment and control of water, wastewater and other fluids. The company plays a vital role in international security through its defense communications and electronics products; space surveillance and intelligence systems; and advanced engineering and related services. It also serves the growing leisure marine and electronic components markets with a wide range of products. Headquartered in White Plains, NY, the company generated $7.0 billion in 2005 sales. In addition to the New York Stock Exchange, ITT Corporation stock is traded on the NYSE Arca, Paris, London and Frankfurt exchanges. For free B-roll/video content and logo about ITT Corporation, please log onto http://www.thenewsmarket.com/ITT to preview and request video. You can receive broadcast-standard video quality digitally or by tape from this site. Registration and video are free to the media. "Safe Harbor Statement" under the Private Securities Litigation Reform Act of 1995 ("the Act"): Certain material presented herein includes forward-looking statements intended to qualify for the safe harbor from liability established by 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 Industries, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2005, 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. ITT CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED INCOME STATEMENTS (In millions, except per share) (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, ----------------------- ----------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Sales and revenues $ 2,001.1 $ 1,734.6 $ 5,756.6 $ 5,195.3 Costs of sales and revenues 1,418.3 1,270.0 4,148.3 3,791.3 Selling, general and administrative expenses 316.4 227.4 855.4 721.9 Research and development expenses 41.7 38.2 119.6 116.4 Restructuring and asset impairment charges 9.8 19.0 32.0 43.1 Total costs and expenses 1,786.2 1,554.6 5,155.3 4,672.7 Operating income 214.9 180.0 601.3 522.6 Interest expense 19.4 17.9 60.8 51.9 Interest income 6.3 16.6 14.8 36.3 Miscellaneous expense, net 4.1 2.4 13.6 12.9 Income from continuing operations before income taxes 197.7 176.3 541.7 494.1 Income tax expense 57.3 22.9 163.9 87.8 Income from continuing operations 140.4 153.4 377.8 406.3 Discontinued operations, including tax (benefit) / expense of $(0.7), $(38.8), $9.0 and $(38.9) in each period, respectively 3.1 35.9 62.5 37.2 Net income $ 143.5 $ 189.3 $ 440.3 $ 443.5 Earnings Per Share: Income from continuing operations: Basic $ 0.76 $ 0.83 $ 2.05 $ 2.20 Diluted $ 0.75 $ 0.81 $ 2.02 $ 2.15 Discontinued operations: Basic $ 0.02 $ 0.19 $ 0.34 $ 0.20 Diluted $ 0.02 $ 0.19 $ 0.33 $ 0.20 Net income: Basic $ 0.78 $ 1.02 $ 2.39 $ 2.40 Diluted $ 0.77 $ 1.00 $ 2.35 $ 2.35 Average Common Shares - Basic 184.1 184.8 184.3 184.6 Average Common Shares - Diluted 186.7 188.9 187.2 188.7
ITT CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited)
September 30, December 31, 2006 2005 ------------- ------------- Assets Current Assets: Cash and cash equivalents $ 792.5 $ 451.0 Receivables, net 1,270.5 1,197.7 Inventories, net 717.2 622.9 Current assets of discontinued operations 205.2 468.0 Deferred income taxes 69.0 73.7 Other current assets 89.2 66.9 Total current assets 3,143.6 2,880.2 Plant, property and equipment, net 775.6 782.0 Deferred income taxes 95.5 72.2 Goodwill, net 2,308.9 2,227.3 Other intangible assets, net 237.9 214.8 Other assets 974.7 893.7 Total assets $ 7,536.2 $ 7,070.2 Liabilities and Shareholders' Equity Current Liabilities: Accounts payable $ 833.7 $ 751.5 Accrued expenses 853.0 715.5 Accrued taxes 147.4 193.0 Current liabilities of discontinued operations 99.6 167.9 Notes payable and current maturities of long-term debt 595.3 750.9 Other current liabilities 47.0 10.0 Total current liabilities 2,576.0 2,588.8 Pension and postretirement benefits 737.0 725.6 Long-term debt 511.7 516.0 Other liabilities 560.5 516.4 Total liabilities 4,385.2 4,346.8 Shareholders' equity 3,151.0 2,723.4 Total liabilities and shareholders' equity $ 7,536.2 $ 7,070.2
ITT CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)
Nine Months Ended September 30, ------------------------------ 2006 2005 ------------- ------------- Operating Activities Net income $ 440.3 $ 443.5 (Income) loss from discontinued operations (62.5) (37.2) Income from continuing operations 377.8 406.3 Adjustments to income from continuing operations: Depreciation and amortization 127.1 127.8 Amortization of stock compensation 16.7 0.9 Restructuring and asset impairment charges 32.0 43.1 Payments for restructuring (36.2) (31.4) Change in receivables (68.5) (171.8) Change in inventories (76.9) (18.7) Change in accounts payable and accrued expenses 176.3 139.9 Change in accrued and deferred taxes 14.0 85.7 Change in other current and non-current assets (82.9) (98.1) Change in other non-current liabilities 9.3 (11.3) Other, net (1.3) 5.5 Net cash - operating activities 487.4 477.9 Investing Activities Additions to plant, property and equipment (95.2) (95.3) Acquisitions, net of cash acquired (75.2) (38.4) Proceeds from sale of assets and businesses 223.7 9.1 Other, net (6.4) (0.9) Net cash - investing activities 46.9 (125.5) Financing Activities Short-term debt, net (157.2) 173.9 Long-term debt repaid (2.2) (4.5) Long-term debt issued - 0.4 Repurchase of common stock (136.4) (288.5) Proceeds from issuance of common stock 53.0 133.4 Dividends paid (57.3) (48.9) Other, net 13.6 (0.2) Net cash - financing activities (286.5) (34.4) Exchange Rate Effects on Cash and Cash Equivalents 29.8 (19.7) Net Cash - Discontinued Operations Operating Activities 71.2 (81.3) Net Cash - Discontinued Operations Investing Activities (7.2) (8.0) Net Cash - Discontinued Operations Financing Activities (0.1) (1.6) Net change in cash and cash equivalents 341.5 207.4 Cash and cash equivalents - beginning of year 451.0 262.9 Cash and Cash Equivalents - end of period $ 792.5 $ 470.3
ITT Corporation Non-GAAP Press Release Reconciliation Reported vs. Organic Revenue / Orders Growth Third Quarter 2006 & 2005 ($ Millions)
(As Reported - GAAP) ------------------------------------------------- % Change Sales & Sales & Change 2006 Revenues Revenues 2006 vs. vs. 3M 2006 3M 2005 2005 2005 ---------- ---------- ---------- ---------- ITT Corporation - Consolidated 2,001.1 1,734.6 266.5 15% Fluid Technology 780.3 694.5 85.8 12% Defense Electronics & Services 957.4 806.7 150.7 19% Electronic Components (1) 99.9 86.1 13.8 16% Motion & Flow Control 167.1 150.0 17.1 11%
% Change Change 2006 Orders Orders 2006 vs. vs. 3M 2006 3M 2005 2005 2005 ---------- ---------- ---------- ---------- Fluid Technology 821.3 689.1 132.2 19% Defense Electronics & Services 1,056.5 825.2 231.3 28%
(As Adjusted - Organic) ---------------------------------------------------------------------------- Acquisi- % tion FX Adj. Change Change Sales & Contrib- Contrib- Sales & Sales & Adj. Adj. Revenues ution ution Revenues Revenues 06 06 3M 2006 3M 2006 3M 2006 3M 2006 3M 2005 vs. 05 vs. 05 -------- -------- -------- -------- -------- -------- -------- ITT Corporation - Consolidated 2,001.1 (22.1) (20.0) 1,959.0 1,734.6 224.4 13% Fluid Technology 780.3 (22.1) (14.3) 743.9 694.5 49.4 7% Defense Electronics & Services 957.4 0.0 (0.1) 957.3 806.7 150.6 19% Electronic Components (1) 99.9 0.0 (1.1) 98.8 86.1 12.7 15% Motion & Flow Control 167.1 0.0 (4.7) 162.4 150.0 12.4 8%
Acquisi- % tion FX Change Change Contrib- Contrib- Adj. Adj. Adj. Orders ution ution Orders Orders 06 vs. 06 vs. 3M 2006 3M 2006 3M 2006 3M 2006 3M 2005 05 05 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Fluid Technology 821.3 (13.0) (15.6) 792.7 689.1 103.6 15% Defense Electronics & Services 1,056.5 0.0 0.1 1,056.6 825.2 231.4 28%
(1) Electronic Components excludes the results from the Switches business which has been moved to discontinued operations. ITT Corporation Non-GAAP Press Release Reconciliation Segment Operating Income & OI Margin Adjusted for Restructuring Third Quarter of 2006 & 2005 ($ Millions)
Adjust for Q3 2006 Q3 2005 % Q3 2006 2006 As As Change 06 As Restru- Reported Reported vs. 05 Reported cturing ---------- ---------- ---------- ---------- ---------- Sales and Revenues: Electronic Components (1) 99.9 86.1 99.9 Defense Electronics & Services 957.4 806.7 957.4 Fluid Technology 780.3 694.5 780.3 Motion & Flow Control 167.1 150.0 167.1 Intersegment eliminations (3.6) (2.7) (3.6) Total Ongoing segments 2,001.1 1,734.6 2,001.1 Dispositions and other - - - Total Sales and Revenues 2,001.1 1,734.6 2,001.1 Operating Margin: Electronic Components (1) 10.0% 0.3% 10.0% Defense Electronics & Services 11.8% 12.0% 11.8% Fluid Technology 12.5% 10.8% 12.5% Motion & Flow Control 14.2% 18.2% 14.2% Total Ongoing Segments 12.2% 11.5% 12.2% Income: Electronic Components (1) 10.0 0.3 3233.3% 10.0 1.2 Defense Electronics & Services 112.6 96.8 16.3% 112.6 1.0 Fluid Technology 97.8 74.7 30.9% 97.8 5.6 Motion & Flow Control 23.7 27.3 -13.2% 23.7 1.4 Total Segment Operating Income 244.1 199.1 22.6% 244.1 9.2
Adjust for % Q3 2006 Q3 2005 2005 Q3 2005 Change As As Restru- As Adj. 06 Adjusted Reported cturing Adjusted vs. 05 ---------- ---------- ---------- ---------- ---------- Sales and Revenues: Electronic Components (1) 99.9 86.1 86.1 Defense Electronics & Services 957.4 806.7 806.7 Fluid Technology 780.3 694.5 694.5 Motion & Flow Control 167.1 150.0 150.0 Intersegment eliminations (3.6) (2.7) (2.7) Total Ongoing segments 2,001.1 1,734.6 1,734.6 Dispositions and other - - - Total Sales and Revenues 2,001.1 1,734.6 1,734.6 Operating Margin: Electronic Components (1) 11.2% 0.3% 6.3% 490 BP Defense Electronics & Services 11.9% 12.0% 12.0% (10)BP Fluid Technology 13.3% 10.8% 12.9% 40 BP Motion & Flow Control 15.0% 18.2% 19.9% (490)BP Total Ongoing Segments 12.7% 11.5% 12.8% (10)BP Income: Electronic Components (1) 11.2 0.3 5.1 5.4 107.4% Defense Electronics & Services 113.6 96.8 0.0 96.8 17.4% Fluid Technology 103.4 74.7 15.2 89.9 15.0% Motion & Flow Control 25.1 27.3 2.6 29.9 -16.1% Total Segment Operating Income 253.3 199.1 22.9 222.0 14.1%
(1) Electronic Components excludes the results from the switches business which has been moved to discontinued operations. ITT Corporation Non-GAAP Press Release Reconciliation Reported vs. Adjusted Net Income & EPS Third Quarter of 2006 & 2005 ($ Millions, except EPS and shares)
Q3 2006 Q3 2006 Q3 2006 Q3 2005 As Adjust- As As Reported ments Adjusted Reported ---------- ---------- ---------- ---------- Segment Operating Income 244.1 9.2#A 253.3 199.1 Interest Income (Expense) (13.1) - (13.1) (1.3) Other Income (Expense) (4.1) - (4.1) (2.4) Gain on sale of Assets - - - - Corporate (Expense) (29.2) 0.5#A (28.7) (19.1) Income from Continuing Operations before Tax 197.7 9.7 207.4 176.3 Income Tax Items 2.6 (4.2)#B (1.6) - Income Tax Expense (59.9) (3.0)#C (62.9) (22.9) Total Tax Expense (57.3) (7.2) (64.5) (22.9) Income from Continuing Operations 140.4 2.5 142.9 153.4 (Loss) Income from Discontinued Operations 3.1 (3.1)#D - 35.9 Net Income 143.5 (0.6) 142.9 189.3 Diluted EPS 0.77 (0.00) 0.77 1.00 Impact of SFAS-123R Adoption 0.02 Diluted EPS Excluding Impact of SFAS-123R Adoption 0.79
Percent Change Change 2006 vs. 2006 vs. Q3 2005 Q3 2005 2005 2005 Adjust- As As As ments Adjusted Adjusted Adjusted ---------- ---------- ---------- ---------- Segment Operating Income 22.9#E 222.0 Interest Income (Expense) (13.2)#F (14.5) Other Income (Expense) - (2.4) Gain on sale of Assets - - Corporate (Expense) 0.3#E (18.8) Income from Continuing Operations before Tax 10.0 186.3 Income Tax Items (32.8)#G (32.8) Income Tax Expense (3.1)#H (26.0) Total Tax Expense (35.9) (58.8) Income from Continuing Operations (25.9) 127.5 (Loss) Income from Discontinued Operations (35.9)#I - Net Income (61.8) 127.5 15.4 12.0% Diluted EPS (0.33) 0.67 $ 0.10 15% Impact of SFAS-123R Adoption 0.00 Diluted EPS Excluding Impact of SFAS-123R Adoption 0.67 $ 0.12 18%
#A - Remove Restructuring Expense of $9.2 & $0.5. #B - Remove Tax Refund of ($2.6M) and apply structural tax rate impact in Q3. #C - Remove Tax Benefit on Special Items of ($3.0M). #D - Remove D.O. income of $3.1M. #E - Remove Restructuring Expense of $22.9 + $0.3. #F - Remove Interest Income due to Tax Refund ($13.2M). #G - Remove Tax Items of ($32.8M). #H - Remove Tax Benefit on Special Items of ($3.1M). #I - Remove D.O. income of ($35.9M). SOURCE ITT Corporation -0- 10/27/2006 /CONTACT: Brendan Mullin, +1-914-641-2160, Bmullin@peppercom.com, for ITT Corporation/ /Web site: http://www.itt.com http://www.thenewsmarket.com/ITT / -----END PRIVACY-ENHANCED MESSAGE-----