WHITE PLAINS, N.Y. – Marine industry supplier ITT Industries, Inc. (NYSE: ITT – News) had a strong second quarter, due in part to market share gains in the leisure marine industry, the company reported in a statement today.
The company’s Motion & Flow Control division, which includes its recreational marine business, saw revenues grow 7 percent in the second quarter to $281.3 million on higher volume in the Motion Control and Leisure Marine businesses, and the positive impact of foreign currency translation. Organic revenue growth was 3 percent in the second quarter. Operating income was up 11 percent to $41.3 million, while operating margin increased 60 basis points.
ITT reported that its Jabsco Leisure Marine unit continues to grow through new product introductions, with six new products scheduled to go to market in the second half of 2004. Jabsco expects 25 percent of its revenue this year to come from new products, up from 18 percent in 2003.
ITT, which also supplies the electronic interconnects and switches; defense communication, opto-electronics, information technology and services; and fluid and water management industries, reported a second quarter 2004 net income of $112 million, up 12 percent 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 percent from reported EPS in the second quarter 2003.
During the second quarter 2004, the company realized a $0.12 per share benefit from several tax items, which was partially offset by other special items, primarily costs associated with restructuring, of ($0.11) per share. The net effect of these special items was a $0.01 increase in reported EPS for the second quarter. Adjusting results to exclude the benefit of these special items, earnings for the second quarter 2004 were $1.17, up 15 percent over the comparable adjusted figure of $1.02 for the same period in 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. “With our current business mix and a seasoned management team in place, we see many long-term growth opportunities ahead.”
Loranger also said that the company is “seeing positive signs in the economy, and our orders are ahead of last year going into the second half of 2004.”
ITT now expects to see full year EPS near the top of the range of $4.40-$4.50.