Itt Inc. · NYSE:ITT
Itt — ITT Industries — Investor Presentation (December 2004)
13 slides from Itt's investor presentation, Dec 14, 2004
Slide 1: 2005 Outlook Discussion
2005 Outlook Discussion December 14, 2004
Slide 2: Agenda
Agenda Reconfirming 4Q04 and FY04 Guidance 2005 Economic Environment Assumptions 2005 Outlook By Segment 2005 Summary 1
Slide 3: 2004 Earnings Outlook
2004 Earnings Outlook FY04 Segment Revenue OI Margin Fluid $2,575 – 2,600 11.6 – 11.7% Technology Defense Electronics $2,350 – 2,400 10.5 – 10.6% Motion & Flow Control $1,040 – 1,050 14.5 – 14.6% Electronic $685 - 695 5.3 – 5.4% Components Guidance 4Q04E FY04E Revenues $1,800 – 1,900 $6,650 – 6,750
Slide 4: Economic Assumptions
2005 Economic Assumptions • Moderate growth in the US, European economies lagging while emerging regions exhibit continued growth • Domestic capital spending likely to slow as a result of elimination of tax credits and the shift of manufacturing to low cost areas • Risk that rising interest rates wi
Slide 5: Fluid Technology 2005 Outlook Highlights
Fluid Technology 2005 Outlook Highlights Revenue Growth • Encouraging bid and order activity supports positive organic growth $2,575 – 2,600 $2,650 – 2,750 • Expanding product offering and market fundamentals in W/WW continue to drive +2 to 7% growth • Double digit growth opportunities for 2004E 200
Slide 6: Defense Electronics & Services 2005 Outlook Highlights
Defense Electronics & Services 2005 Outlook Highlights Revenue Growth • Expanding addressable market for core $2,750 – 2,850 Defense technologies $2,350 – 2,400 • Near-term requirement to double SINCGARS production from year ago +15 to 21% levels • Deployment of Reservists/Guard units 2004E 2005E fu
Slide 7: Motion & Flow Control 2005 Outlook Highlights
Motion & Flow Control 2005 Outlook Highlights Revenue Growth • Leisure Marine continues to outpace $1,040 – 1,050 $1,050 – 1,100 market growth through successful new product introductions • Improving cost position through transfer Flat to +6% of manufacturing footprint to low cost regions and global
Slide 8: Electronic Components 2005 Outlook Highlights
Electronic Components 2005 Outlook Highlights Revenue Growth • Increased contribution from new products $685 - 695 $700 - 725 in communications, military and transportation • Portfolio transformation to improve +1 to 6% profitability • Discontinuation of NS&S 2004E 2005E 2004 Revenue $20M, OI $(4)M
Slide 9: Pension Outlook
2005 Pension Outlook Pension Plan Assumptions Current Projected Return on Plan Assets 9.00% 9.00% Discount Rate 6.25% 6.00% - 6.25% Pension EPS Impact $US Million except per share 2004 2005E Operating Income $(57.5) $ (82.5) – (92.5) CAS412 20.5 26.0 – 28.5 Pension Income/(Expense) (37.0) (56.5) – (
Slide 10: EPS Walkforward
2005 EPS Walkforward 2004E $4.45 – 4.50 Pension (0.14) – (0.20) Healthcare (0.04) – (0.06) Taxes 0 Foreign Exchange 0 Acquisitions 0.20 – 0.25 Restructuring Benefits 0.10 – 0.15 Total $4.57 – 4.64 +10 - 11% Core Growth Core Expansion 0.43 – 0.51 From Segments 2005E $5.00 – 5.15 9
Slide 11: Guidance
2005 Guidance FY05 Impacts Low End High End • Acquisition Integration • Favorable Economic Trends • Raw Material Prices • Defense Wins • Decline in Consumer Spending • New Products • Pension (Discount Rate) • Electronic Components 2005 2004E Outlook Guidance Revenues $6,650 – 6,750 $7,150 – 7,425 +6
Slide 12: Summary
Summary Another year of solid growth in 2004 - the strategy is working Strength of core portfolio and operational excellence drive growth Positive momentum being generated by the ITT Management System Strong cash flow performance; solid balance sheet Momentum continues into 2005 Benefit
Slide 13: ITT Industries
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ITT Industries — Investor Presentation (December 2004) on 6ix