ITT Announces Solid Results for 2013 Second Quarter

August 1, 2013

Source: Kathleen Bark
Department: ITT
Phone: (914) 641-2103

2013 operating performance drives increase in guidance for revenue and adjusted EPS

WHITE PLAINS, N.Y., Aug. 1, 2013 - ITT Corporation (NYSE: ITT) today reported that second-quarter 2013 total revenue grew by 9 percent to $609 million with 2 percent organic growth (defined as total revenue excluding foreign exchange, recent acquisitions and divestitures).

ITT's total revenue results reflect gains in key geographies, including 13 percent growth in Western Europe and 12 percent growth in emerging markets. These increases were driven by automotive gains and the performance of its Bornemann Pumps acquisition. In the second quarter, ITT achieved organic growth of 12 percent in the global automotive brake pad market and 19 percent in global energy, which were offset by a 35 percent decline in global mining.

On a GAAP basis, segment operating margins improved by 10 basis points. Adjusted segment operating margins, which exclude special items, expanded by 70 basis points, reflecting net operating productivity and increased volume partially offset by the Bornemann Pumps operations and the funding of strategic investments.

Second-quarter GAAP earnings from continuing operations increased to $0.27 per share. Adjusted earnings from continuing operations, which excludes special items, increased 4 percent to $0.51 per share, reflecting a 15 percent increase in adjusted segment operating income that was partially offset by a higher effective tax rate and the impacts of favorable prior-year corporate items.

"ITT has consistently executed our strategies to drive profitable growth and value creation, and the first half of 2013 was no exception," said Denise Ramos, chief executive officer and president. "In both quarters, we continued to drive market expansion with strong growth in emerging markets, winning share in a tough Western European environment and enhancing our presence in key global end markets such as energy and automotive.

"We're supporting that growth longer-term by making strategic customer-focused investments globally including expanding our automotive capabilities in China and enhancing our oil and gas capabilities in Korea and the United States. At the same time, our intense focus on execution is helping us continually improve productivity, key customer metrics and margins. All of these efforts represent sustainable achievements that position us well to continue to deliver strong results for the remainder of 2013 and beyond."

Read the full ITT Announces Solid Results for 2013 Second Quarter article.

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