ITT Inc. · NYSE:ITT
ITT — Q3 2007 Earnings Presentation
10 slides from ITT's earnings presentation, Oct 26, 2007
Slide 1: Third Quarter 2007 Investor Review
Third Quarter 2007 Investor Review October 26, 2007
Slide 2: 3Q Highlights
3Q Highlights • Portfolio Realignment Continues • Closing of IMC Acquisition • Announcement of EDO Acquisition • Completion of Switches Sale • Revenue Enhanced by Strong International Sales • Strong Segment Margin Performance • Operational Initiatives Continue • 19% EPS Growth 1
Slide 3: Financial Results
Financial Results 3Q06 3Q07 $2,001 $2,181 Revenues • Organic Growth +6% +9% • Balanced across segments and end- markets Segment $299 • Productivity initiatives contribute to $253 Operating operating margin improvement of 100 Income* basis points to 13.7% +18% $0.92 EPS* $0.77 • Top-line growth and l
Slide 4: Fluid Technology
Fluid Technology Revenues Operating Income Operating Margin $858 $117 $103 13.3% 13.7% $780 +10% +13% +40 bps 3Q06 3Q07 3Q06* 3Q07* 3Q06 3Q07 Q3 Highlights • Organic Revenue Growth +6% driven by • Water & Wastewater impacted by strong international sales slowdown in treatment offset by • Industrial
Slide 5: Defense Electronics & Services
Defense Electronics & Services Operating Operating Backlog Revenues Income Margin $3,656 $3,550 $1,012 $957 $137 13.5% $114 11.9% (3%) +6% +21% +160 bps 3Q06 3Q07 3Q06 3Q07 3Q06* 3Q07* 3Q06 3Q07 Q3 Highlights • Revenue growth driven by services • Continued operating margin strength driven by strong
Slide 6: Motion & Flow Control
Motion & Flow Control Revenues Operating Income Operating Margin $45 $315 $267 $36 13.6% 14.3% +18% +24% +70 bps 3Q06 3Q07 3Q06* 3Q07* 3Q06 3Q07 Q3 Highlights • Organic Revenue Growth +9% • Aerospace benefits from continued • Aerospace Controls +26% strength of commercial OEMs • Friction +14% • Mari
Slide 7: 2007 Earnings Outlook ($ in Millions except EPS)
2007 Earnings Outlook ($ in Millions except EPS) yr/yr yr/yr 2Q06 4Q07 Growth 1 FY06 FY07 Growth 1 Revenue $ 2,250 - $ 2,310 11.1% $ 7,808 $ 8,730 - $ 8,775 12.1% Segment OI Margin # 13.1% - 13.3% 60 bps 12.5% 13.2% - 13.4% 80 bps EPS2 $ 0.90 - $ 0.93 25.5% $ 2.85 $ 3.50 - $ 3.53 23.3% FCF Conversio
Slide 8: Appendix
S itt Engineered for life Appendix
Slide 9: Non-GAAP Reconciliations - EPS
Non-GAAP Reconciliations - EPS 3Q06 3Q07 Adjusted EPS from Continuing Ops. $ 0.77 $ 0.92 Restructuring, Net $ (0.04) $ (0.03) Tax Settlement/Other $ 0.02 $ 0.03 EPS from Continuing Ops. $ 0.75 $ 0.92 Discontinued Ops. $ 0.02 $ 0.33 Reported EPS $ 0.77 $ 1.25 8
Slide 10: Non-GAAP Reconciliations – Segment Operating Income
Non-GAAP Reconciliations – Segment Operating Income 3Q06 3Q07 Defense Electronics & Services Op. Income, as adj $ 113.6 $ 137.0 Restructuring $ (1.0) $ 0.1 Op. Income, as reported $ 112.6 $ 137.1 Fluid Technology Op. Income, as adj $ 103.4 $ 117.3 Restructuring $ (5.6) $ (6.6) Op. Income, as reporte