ITT Inc. · NYSE:ITT
ITT — FY2006 Earnings Presentation
9 slides from ITT's earnings presentation, Feb 2, 2007
Slide 1: Fourth Quarter / Full-Year 2006 Investor Review
Fourth Quarter / Full-Year 2006 Investor Review February 2, 2007
Slide 2: 2006 Highlights
2006 Highlights 1 • Double-digit organic revenue growth • Segment operating income margin expansion ¾ Traction on operational initiatives: 9 Lean/Six Sigma 9 Global Supply Sourcing 9 Facility Rationalization • Portfolio improvements • Dividend increase • Stock repurchase program
Slide 3: Financial Results – As Adjusted
Financial Results – As Adjusted 2 4Q05 4Q06 FY05 FY06 $7,808 $2,051 $7,041 • Organic Growth Revenues $1,846 +11.1% +10.9% • 4Q +8%; FY +10% Segment $974 • Improved margins at $258 $870 $241 Operating commercial businesses Income +7.1% +12.0% $2.85 • Exceeded guidance range $0.73 $2.56 EPS $0.70 +11%
Slide 4: Earnings Per Share Reconciliation
Earnings Per Share Reconciliation 3 4Q05 4Q06 FY05 FY06 Adjusted EPS $ 0.70 $ 0.73 $ 2.56 $ 2.85 Restructuring, Net (0.05) (0.07) (0.20) (0.19) Tax Settlements/Other - (0.01) 0.44 0.01 EPS from Cont. Ops. $ 0.65 $ 0.65 $ 2.80 $ 2.67 Cum. Effect of Acct. Change (0.04) - (0.03) - Disc. Ops., Net (1.06
Slide 5: Fluid Technology
Fluid Technology 4 Fourth Quarter Full Year 2005 2006 % Chg 2005 2006 % Chg Revenues $749.8 $838.8 11.9% $2,799.1 $3,070.1 9.7% Operating $105.1 $123.4 17.4% $351.2 $397.3 13.1% Income Operating 14.0% 14.7% +70 b.p. 12.5% 12.9% +40 b.p. Margin Financial Highlights Market/Operational Highlights • 4Q
Slide 6: Defense Electronics & Services
Defense Electronics & Services 5 Fourth Quarter Full Year 2005 2006 % Chg 2005 2006 % Chg Backlog $3,475.1 $3,880.7 11.7% Revenues $862.3 $952.3 10.4% $3,224.2 $3,659.3 13.5% Operating Income $104.2 $97.8 (6.1)% $363.7 $410.6 12.9% Operating 12.1% 10.3% (180) b.p. 11.3% 11.2% (10) b.p. Margin Financ
Slide 7: Motion & Flow Control
Motion & Flow Control 6 Fourth Quarter Full Year 2005 2006 % Chg 2005 2006 % Chg Revenues $236.8 $263.1 11.1% $1,030.9 $1,092.9 6.0% Operating $32.1 $36.6 14.0% $155.2 $166.2 7.1% Income Operating 13.6% 13.9% +30 b.p. 15.1% 15.2% +10 b.p. Margin Financial Highlights Market Highlights • Organic reven
Slide 8: 2007 Earnings Outlook
2007 Earnings Outlook 7 Revenue Segment FY07 Fluid Technology $3,215 – 3,245 Margin 13.7 – 13.9% Defense Electronics $3,975 – 4,025 Margin 11.4 – 11.5% Motion & Flow Control $1,110 – 1,130 Margin 15.6 – 16.0% 1Q07 FY07 Revenue $1,895 – 1,935 $8,285 – 8,375 Segment Operating 11.8 – 12.0% 12.9 – 13.1%
Slide 9: Y itt
Y itt Engineered for life