ITT Inc. · NYSE:ITT
ITT — ITT Industries — Q3 2004 Earnings Presentation
12 slides from ITT's earnings presentation, Oct 21, 2004
Slide 1: Third Quarter 2004 Investor Review
Third Quarter 2004 Investor Review October 21, 2004
Slide 2: Financial Results Adjusted for Reported Special Items
Financial Results Adjusted for 1 Reported Special Items 3Q03 3Q04 3Q03 3Q04 $1,667.7 • Organic Growth 12% $1,375.2 Revenues • 4th consecutive quarter of +21.3% double–digit organic growth $188.0 $193.8 • Higher volume Segment $152.6 $154.2 Operating • All segments reported +23.2% + 25.7% improvement
Slide 3: Net Income / EPS
Net Income / EPS $, Millions except EPS 2 3Q03 3Q04 $Δ Income from Operations (1) 154.2 193.8 +39.6 Corporate Expense (15.8) (22.0) (6.2) Interest, Net (4.9) (8.6) (3.7) Other (2.0) (4.1) (2.1) Taxes (1) (40.8) (49.4) (8.6) Income before special items 90.7 109.7 +19.0 Special Items(2) 18.5 0.1 (18.4
Slide 4: Special Items
Special Items 3 3Q03 3Q04 $, Millions except per share Per Share Pre-Tax After-Tax Per Share Reported EPS $ 1.16 $ 1.16 Restructuring, Net $ (0.01) $ (5.7) $ (3.9) $ (0.04) Tax Settlements/Other $ 0.13 $ 4.0 $ 0.04 Interest Income $ 0.08 Less Total Special Items $ 0.20 $ ( 5 . 7 )$ 0.1 $ 0.00 Adjust
Slide 5: Cash from Operations
Cash from Operations $, Millions 4 9M03 9M04 Income from Continuing Ops 281.3 310.3 Depreciation 123.6 130.5 Amortization 15.1 15.5 Working Capital (91.3) (146.9) Pension Pre-funding (200.0) (100.0) Other 140.5 40.2 CFOA 269.2 249.6 Capital Expenditures (97.0) (100.2) Pension Pre-funding 200.0 100.0
Slide 6: Balance Sheet
Balance Sheet 5 $, Millions Dec 31, 03 Jun 30, 04 Sep 30, 04 Short Term Debt 141.5 359.7 1,019.5 Long Term Debt 383.3 379.4 360.9 FAS 133 Impact 77.6 61.1 82.0 Total Debt 602.4 800.2 1,462.4 Cash & Cash Equivalents 414.2 219.5 253.9 Net Debt 188.2 580.7 1,208.5 EBITDA Coverage 32.1x 36.9x 32.4x Net
Slide 7: Fluid Technology
6 Fluid Technology Revenues Operating Income Operating Margin 619.2 13.3% 564.1 80.5 13.0% 75.2 +9.8% +7.0% (30) bps 3Q03 3Q04 3Q03 3Q04 3Q03 3Q04 Financial Highlights Market Highlights • Order Growth +22%, Organic +15% • Continued wins reflect attractive growth • Advanced Water Treatment orders opp
Slide 8: Defense Electronics & Services
Defense Electronics & Services 7 Operating Operating Backlog Revenues Income Margin 3,339 71.8 10.8% 11.4% 3,021 630.2 445.9 48.1 +10.5% +41.3% +49.3% +60 bps 3Q03 3Q04 3Q03 3Q04 3Q03 3Q04 3Q03 3Q04 Financial Highlights Market Highlights • Key wins reinforce long-term growth • Record Backlog, +6% Or
Slide 9: Motion & Flow Control
8 Motion & Flow Control Revenues Operating Income Operating Margin 242.8 33.2 223.0 29.2 13.1% 13.7% +8.9% +13.7% +60 bps 3Q03 3Q04 3Q03 3Q04 3Q03 3Q04 Financial Highlights Market Highlights • Organic Revenue Growth of 4%, Ex- • New products drive growth Auto Tubing +9% • Non-auto applications in Qu
Slide 10: Electronic Components
Electronic Components 9 Operating Operating Orders Revenues Income Margin 8.3 4.7% 168.4 178.1 146.0 143.8 1.2% +23.9% 1.7 +15.3% +388% +350 bps 3Q03 3Q04 3Q03 3Q04 3Q03 3Q04 3Q03 3Q04 Financial Highlights Market Highlights • Strong market share gains in key end • Order Growth +11% Organic markets •
Slide 11: 2004 Earnings Outlook
2004 Earnings Outlook 10 FY04 Segment Revenue OI Margin Fluid Technology $2,550 – 2,560 12.0 – 12.1% Defense $2,325 – 2,340 10.4 – 10.6% Electronics Motion & $1,030 – 1,040 14.4 – 14.5% Flow Control Electronic $705 - 715 5.2 – 5.3% Components 4Q04 FY04 Revenue $1,770 – 1,810 $6,600 – 6,655 Segment O
Slide 12: ITT Industries
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