ITT Inc. · NYSE:ITT
ITT — Q1 2011 Earnings Presentation
14 slides from ITT's earnings presentation, Apr 29, 2011
Slide 1: Investor Review Q1 2011
April 29, 2011 Investor Review Q1 2011
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: Q1 ITT Overview
Q1 ITT Overview Strong Q1 Results; Raising FY Adjusted EPS* Guidance Midpoint +18% Adjusted EPS* Growth Strong Fluid and Motion & Flow Control Results +11% Motion Organic Growth +24% Fluid Total Growth; +8% Fluid Organic Growth +19% Emerging Market Growth Significant Operational Margin Expan
Slide 4: Q1 ITT Results
Q1 ITT Results Commercial Growth & Strong Orders Q1 Results $ millions, except per share amounts 2011 vs 2010 Revenues $2,760 +7% Segment Operating Income $326 +14% Segment Operating Margin 11.8% +70 bps Adjusted EPS* $0.98 +18% +2% Organic Revenue +20% Organic Orders +11% Motion; +8% Fluid; -4% Def
Slide 5: Fluid Technology
Fluid Technology Impressive Revenue, Orders & Margin Expansion Q1 Results $ millions 2011 vs 2010 Revenues $992 +24% Operating Income $124 +36% Operating Margin 12.5% +110 bps Restructuring $0 +$4 +8% Organic Revenue +12% Organic Orders (+27% Total) +14% Water & Wastewater +20% Industrial Process
Slide 6: Motion & Flow Control
Motion & Flow Control Demand Strength Across all Businesses Q1 Results $ millions 2011 vs 2010 Revenues $430 +11% Operating Income $65 +18% Operating Margin 15.1% +90 bps Restructuring -$1 - +11% Organic Revenue +20% Organic Orders +19% Control Technologies +42% Control Technologies Aerospace Afte
Slide 7: Defense & Information Solutions
Defense & Information Solutions Performing in Difficult Conditions Q1 Results $ millions 2011 vs 2010 Revenues $1,341 -4% Operating Income $137 -3% Operating Margin 10.2% +10 bps Restructuring -$4 +$8 -4% Organic Revenue +26% Funded Orders +11% Information Systems +172% Information Systems Recent
Slide 8: 2011 ITT Outlook
2011 ITT Outlook Commercial Strength & Difficult Defense Environment Full Year 2011 Segment Guidance $ billions Revenue Operating 2011 Midpoint vs 2010 Margin** Guidance Total Organic 2011 Current Segments Motion & Flow Control ~ $1.6 +10% +6.5% ~ 15.8% Fluid Technology ~ $4.2 +15% +5.5% ~ 14.4% Def
Slide 9: Transformation Update
Transformation Update Transaction Progress On-Track to Complete Proposed Tax-Free Spins in 2011 Filed Customary IRS Request for Tax-Free Spin Ruling Anticipated Initial Form 10’s Filing Timeframe: June – August 2011 Future Leadership Teams Named Financial Updates Q1 Pre-Tax Transformation
Slide 10: Recent Strategic Developments
Recent Strategic Developments “Future ITT” “Future Water” “Future Defense” $14M High-Speed Rail First $12M Cooling Water Pumps Commercial ATM - Only Class Seats & Connectors (India) Solution For Gate to Gate (China) Aircraft Operations Management $9M Wedeco Ozone Treatment $8M Vertical Min
Slide 11: Appendix
¥ itt Appendix Q1 2011 Engineered for life
Slide 12: 2011 Adjusted EPS Guidance Rollforward
2011 Adjusted EPS* Guidance Rollforward Commercial Strength & Difficult Defense Environment 2011 Adjusted EPS* Previous FY 2011 Guidance Midpoint (Feb 2011) $ 4.72 Q1 Results v Guidance Operating Performance $ 0.11 Non Operating Items $ (0.03) Total Q1 Performance $ 0.08 Q2 - Q4 Updated Guidance Ope
Slide 13: Q1 2011 ITT Segment Performance
Q1 2011 ITT Segment Performance Strong Commercial Productivity Fluid Motion Defense ITT Q1 '11 Total Revenue vs PY 24.2% 10.8% -3.7% 7.1% FX -1.8% -0.2% -0.1% -0.6% Acquisition/Disposition -14.0% 0.0% -0.2% -4.5% Q1 '11 Organic Revenue vs PY 8.4% 10.6% -4.0% 2.0% Q1 '10 Margin 11.4% 14.2% 10.1% 11.1
Slide 14: Non-GAAP Reconciliations - EPS & FCF
Non-GAAP Reconciliations - EPS & FCF Q1 % Change EPS - Reconciliation 2010 2011 2011 vs 2010 Total Reported EPS $ 0.79 $ 0.66 -16% Discontinued Operations $ (0.01) $ 0.01 Continuing Ops. - Reported EPS $ 0.78 $ 0.67 -14% Continuing Ops. - Special Items: Transformation Costs, Net of Tax $ - $ 0.34 Pr