ITT reports record fourth quarter EPS

WHITE PLAINS, N.Y. – ITT Industries (NYSE: ITT) reported record fourth quarter earnings per share, today, noting an increase of 12 percent.

In the company’s motion and flow control division, which is where its marine industry products are managed, it reported increased revenues of 10 percent to $272.4 million, “with significant gains in the friction materials, aerospace controls and leisure marine.” Excluding the impact of foreign currency translation, the segment’s revenues grew by 4 percent.

Segment operating income rose by 20 percent, excluding restructuring costs, to $35.4 million, and operating margin reportedly grew by 130 basis points on product mix and process improvements.

The company said that new products, global sourcing and customer service continue to drive growth in revenue and operating in come in the leisure marine business, particularly in the spa/whirlpool unit. New products represented 35 percent of revenues in this business in 2004, up from 25 percent in 2003, and are expected to represent 45 percent of revenues in 2005.

Big picture

For the company, fourth quarter revenues rose 28 percent to $1.94 billion. Excluding acquisitions and foreign exchange, organic growth was 13 percent.

The fiscal year 2004 earnings per share, or EPS, rose to $4.58 from $4.29, and adjusted earnings grew 17 percent. And 2004 revenue was up 21 percent to $6.8 billion on sales growth in all segments.

“We finished 2004 on a positive note, continuing our long-term growth trend in double digit earnings and revenue growth, and we begin 2005 with noticeable momentum, riding a strong increase in order activity across all of our businesses,” said Steve Loranger, chairman, president and chief executive officer. “Fourth quarter orders in our Fluid Technology business grew at the highest rate of the year, particularly within our Water/Wastewater and Industrial Products groups. Even excluding the impact of acquisitions, our water/wastewater business orders continue to grow at a double-digit rate, pointing to a strong year ahead. Our Defense group continues to grow, bringing the backlog to a new record of $3.45 billion. The Motion & Flow Control and Electronic Components segments posted significant revenue and profit gains through targeted new product introductions and process improvements. In short, the stage is set for continued growth in revenue, earnings and cash flow for 2005.”

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