WHITE PLAINS, N.Y. – ITT Corp. predicts its Motion & Flow Control segment’s 2009 organic revenues to be down approximately 15 percent, due in part to projected weakness in automotive, marine, and certain industrial end-markets, it reported in a statement today.
The company said it anticipates its full-year 2009 earnings forecast in the range of $3.60 to $4.00 per share, including anticipated restructuring costs. ITT expects organic revenue will be in a range of up one to down two percent compared to anticipated 2008 revenue. Including the expected negative impact of foreign currency exchange, total revenue is anticipated to be down between two and six percent, it added.
ITT also reaffirmed its current year earnings guidance from continuing operations, excluding special items, of $3.97-$4.03 per share, representing growth of approximately 22 percent over the prior year.
"Given the challenging global economic environment that has worsened in recent months, we have taken a number of proactive measures to better position the company to weather the anticipated difficult year ahead,” said Steve Loranger, chairman, president and chief executive officer, ITT. “We expect these actions – in addition to our strong balance sheet, continued focus on operational excellence, and positive outlook for the defense segment – will provide stability and help us to perform relatively well in the coming year.”
ITT executive management announced it would recommend a dividend of 85 cents per share for 2009, representing an increase of approximately 22 percent over the 2008 dividend. The recommendation is subject to board approval at its February 2009 meeting.
“Our people are executing well against our strategies and staying focused on the customer during this difficult time,” said Loranger. “Our ability to meet our 2008 targets despite significant challenges and recommend a substantial dividend increase is testament to the fundamental strength of ITT, the quality of our global teams, and our long-term confidence in the business.”
Separately, ITT’s board today approved the extension of the company’s $1 billion share repurchase program for an indefinite period of time. ITT has purchased approximately $431 million of outstanding common stock since announcing the program in October 2006. Prior to this extension, the program was set to expire November 2009.
“During these volatile times, we intend to remain focused on preserving liquidity,” said Denise Ramos, senior vice president and chief financial officer, ITT. “The extension of the repurchase program, coupled with ITT’s strong free cash flow generation, gives us the flexibility to continue improving our net debt position, while maintaining strategic investments in our long-term growth.”
ITT Corp. participates in markets including water and fluids management, global defense and security, in addition to motion and flow control.
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