ITT Inc. · NYSE:ITT
ITT — Q4 2007 Earnings Presentation
10 slides from ITT's earnings presentation, Feb 6, 2008
Slide 1: Fourth Quarter / Full-Year 2007 Investor Review
Fourth Quarter / Full-Year 2007 Investor Review February 6, 2008
Slide 2: 2007 Highlights
1 2007 Highlights • Double-digit increases in revenue, operating income and EPS • Balanced capital deployment • Return of cash to shareholders • Important portfolio enhancements • Dramatic strategic progress • Share gains across numerous end markets • Improved cost structure with opening of Asia and
Slide 3: Financial Results – As Adjusted
2 Financial Results – As Adjusted 4Q06 4Q07 FY06 FY07 $9,003 $2,529 $7,808 • Organic Growth Revenues $2,051 +23% +15% • 4Q +14%; FY +11% Segment $324 $1,187 • Improved full-year margins at $974 Operating $258 Fluid and Defense Income* +26% +22% $0.94 $3.53 • Growth exceeded guidance EPS* $0.73 $2.85
Slide 4: Fluid Technology
3 Fluid Technology Fourth Quarter Full-Year 2006 2007 % Chg 2006 2007 % Chg Revenues $839 $985 17% $3,070 $3,509 14% Operating $123 $145 18% $397 $473 19% Income Operating 14.7% 14.7% - 12.9% 13.5% +60 b.p. Margin Q4 Highlights • Organic revenue growth +11% driven by • Industrial Process benefits fr
Slide 5: Defense Electronics & Services
Defense Electronics & Services 4 Fourth Quarter Full-Year 2006 2007 % Chg 2006 2007 % Chg Backlog n/a n/a n/a $3,881 $5,234 35% Revenues $952 $1,178 24% $3,659 $4,176 14% Operating Income $98 $129 32% $411 $512 25% Operating 10.3% 10.9% +60 b.p. 11.2% 12.3% +110 b.p. Margin Q4 Highlights • Strong or
Slide 6: Motion & Flow Control
5 Motion & Flow Control Fourth Quarter Full-Year 2006 2007 % Chg* 2006 2007 % Chg Revenues $263 $370 41% $1,093 $1,333 22% Operating $37 $50 37% $166 $202 22% Income Operating 13.9% 13.6% (30) b.p. 15.2% 15.2% - Margin Q4 Highlights • Organic revenue growth +12% • Aerospace benefits from strong • Ae
Slide 7: 2008 Earnings Outlook
6 2008 Earnings Outlook ($ in Millions except EPS) yr/yr yr/yr 1Q07 First Quarter Growth1 FY07 Full-Year Growth1 Revenue $ 2,650 - $ 2,700 29% $ 9,003 $ 11,125 - $ 11,275 24% Segment OI Margin 11.2% - 11.4% -70 bps 12.5% 12.2% - 12.4% -20 bps Earnings Per Share $ 0.80 - $ 0.82 11% $ 3.29 $ 3.80 - $
Slide 8: Appendix
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Slide 9: Non-GAAP Reconciliations - EPS
8 Non-GAAP Reconciliations - EPS 4Q06 4Q07 FY2006 FY2007 Adjusted EPS from Continuing Ops. $ 0.73 $ 0.94 $ 2.85 $ 3.53 Restructuring, Net $ (0.07) $ (0.13) $ (0.19) $ (0.24) Tax Settlement/Other $ (0.01) $ (0.11) $ 0.01 $ 0.15 EPS from Continuing Ops. $ 0.65 $ 0.70 $ 2.67 $ 3.44 Discontinued Ops. $
Slide 10: Non-GAAP Reconciliations – Segment Operating Income
9 Non-GAAP Reconciliations – Segment Operating Income 4Q06 4Q07 FY2006 FY2007 Defense Electronics & Services Op. Income, as adj $ 97.8 $ 128.8 $ 410.6 $ 512.4 Restructuring $ (2.5) $ (3.4) $ (6.3) $ (9.7) Op. Income, as reported $ 95.3 $ 125.4 $ 404.3 $ 502.7 Fluid Technology Op. Income, as adj $ 12