ITT Inc. · NYSE:ITT
ITT — Q2 2010 Earnings Presentation
15 slides from ITT's earnings presentation, Jul 30, 2010
Slide 1: Investor Review Q2 2010
July 30, 2010 Investor Review Q2 2010
Slide 2: Safe Harbor
Safe Harbor 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 Private Securities Litigation Reform Act of 1995.
Slide 3: Q2 ITT Overview: Strong Execution & Portfolio Progress
Q2 ITT Overview Strong Execution & Portfolio Progress Today’s Announcements • $800M Afghanistan Service Wins – Army Corps of Engineers • Divesting CAS, a Defense SETA Business Strategic Execution • $1.14 Adjusted EPS* +9% vs PY • Productivity Ahead of Schedule • Strong FY Performance To Offset E
Slide 4: Portfolio Progress: Executing Our Strategy
Portfolio Progress Executing Our Strategy 2010 2010 2009 Portfolio Actions Pro-Forma* Revenues Divesting CAS SETA Business Int’l & Other Motion Customers 13% 14% Fluid 31% Fluid Armed 33% Services Armed 40% Services Motion 44% 11% Int’l & Other Customers 14% *Calculated as current continuing 2010
Slide 5: Q2 ITT Results: Exceptional Productivity
Q2 ITT Results Exceptional Productivity Q2 Results - Continuing Operations $ millions, exc ept per share amounts 2010 vs 2009 Revenues $2,739 +1% Segment Operating Income $366 +7% Segment Operating Margin 13.4% +80 bps Adjusted EPS* $1.14 +9% Q2 Results - Continuing Performance FLAT Organic Revenue
Slide 6: Fluid Technology: Solid Order Growth & Margin Expansion
Fluid Technology Solid Order Growth & Margin Expansion Q2 Results $ millions 2010 vs 2009 Revenues $878 +1% Operating Income $130 +16% Operating Margin 14.8% +190 bps Restructuring & Realignment -$4 +$12 Q2 Performance -4% Organic Revenue +15% Organic Orders +2% R&CW; -1% WWW; -16% IP +20% IP; +15%
Slide 7: Fluid Acquisition of Godwin Pumps
Fluid Acquisition of Godwin Pumps Global Leadership in Dewatering Strategic Rationale Transaction Overview 9 Growing $3 Billion Global Dewatering Market Expected 3rd Quarter 2010 Close ~$585M Purchase Price Climate and Regulatory Drivers 2010 Estimated Dewatering Revenue: Attractive End-Ma
Slide 8: Motion & Flow Control: Exceptional Performance
Motion & Flow Control Exceptional Performance Q2 Results $ millions 2010 vs 2009 Revenues $361 +17% Operating Income $42 +27% Operating Margin 11.6% +90 bps Restructuring & Realignment - +$6 Q2 Performance +21% Organic Revenue +17% Organic Orders: +33% Flow; +25% ICS; +19% Motion Tech +62% ICS; +30%
Slide 9: Defense & Information Solutions: Diversification & Execution
Defense & Information Solutions Diversification & Execution Q2 Results - Continuing Operations $ millions - All periods exclude CAS business 2010 vs 2009 Revenues $1,503 -3% Operating Income $194 -2% Operating Margin 12.9% +10 bps Restructuring -$7 -$4 Q2 Performance - Continuing Operations -3% Orga
Slide 10: 2010 Adjusted EPS Guidance Walk
2010 Adjusted EPS Guidance Walk Raising Guidance on Strong Productivity Q2 2010 Performance Full Year 2010 Guidance Low Mid High Low Mid High Previous Adjusted EPS Guidance $ 1.05 $ 1.06 $ 1.07 $ 4.05 $ 4.13 $ 4.20 Q2 Operating Performance $ 0.10 $ 0.10 2H Additional Net Performance $ - $ 0.01 $ 0.1
Slide 11: 2010 ITT Outlook
2010 ITT Outlook Q3 Consolidated Continuing Guidance $ billions, except per share data vs 2009 Q3 Midpoints Total Organic ITT - Continuing Revenues ~$2.7B +1% +1% Adjusted EPS* Range $0.94 - $0.98 -6% Full Year 2010 Continuing Guidance $ billions, except per share data vs 2009 2010 Midpoints Total O
Slide 12: Appendix
¥ itt Appendix Q2 2010 UY my Engineered for life
Slide 13: Q2 2010 ITT Segment Performance
Q2 2010 ITT Segment Performance Fluid Motion & Flow Defense ITT Q2 '10 Total Revenue vs PY 1.0% 17.2% -2.7% 0.7% FX 0.6% 4.2% 0.1% 0.7% Acquisition/Disposition -5.4% 0.0% 0.0% -1.7% Q2 '10 Organic Revenue vs PY -3.8% 21.4% -2.6% -0.3% Q2 '09 Margin 12.9% 10.7% 12.8% 12.6% Operational, Investments, O
Slide 14: Non-GAAP Reconciliations - EPS & FCF
Non-GAAP Reconciliations - EPS & FCF Q2 % Change EPS - Reconciliation 2009 2010 2010 vs 2009 Reported EPS $ 1.10 $ 1.28 16% Discontinued Ops - Legacy Entities $ - $ (0.04) Discontinued Ops - Defense CAS Business $ (0.01) $ (0.02) Reported EPS - Continuing Ops. $ 1.09 $ 1.22 12% Special Items: Tax Se
Slide 15: Results with CAS in Discontinued Operations
Results with CAS in Discontinued Operations ($ in millions, except EPS) Revenue 2009 2010 Q1 Q2 Q3 Q4 YTD Q1 ITT Total Revenue - As Reported 2,557 2,780 2,698 2,869 10,904 2,636 CAS - Discontinued Operations (51) (60) (59) (60) (230) (58) ITT Revenue - Updated Continuing 2,506 2,720 2,639 2,809 10,6