ITT Inc. · NYSE:ITT
ITT — Q1 2010 Earnings Presentation
14 slides from ITT's earnings presentation, Apr 30, 2010
Slide 1: ITT Corporation Q1 2010 Investor Review
ITT Corporation Q1 2010 Investor Review April 30, 2010
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 Strategic Overview
Q1 ITT Strategic Overview Focused Execution Driving Strategic Growth Strategic Execution 9 $0.84 Adjusted EPS +17% vs PY 9 Commercial Op Income & Margin Expansion 9 Productivity Initiatives Ahead of Schedule 9 Raising 2010 Adjusted EPS and Organic Revenue Guidance Differentiated Organic Growth 9
Slide 4: Global Trends Driving Long-Term Growth
Driving Long-Term Growth Key 2010 ITT Wins Energy ITT Developing Energy-Efficient Water System Solution for Creation & Efficiency the City of Chongqing, China Fresh Water ITT Delivering Clean Water to Winnipeg with one of the Largest & Resource Scarcity Dissolved Air Flotation Treatment Systems in N
Slide 5: Q1 ITT Results
Q1 ITT Results Exceptional Commercial Productivity Q1 Results $ millions, except per share amounts 2010 vs 2009 Revenues $2,636 +3% Segment Operating Income $292 +12% Segment Operating Margin 11.1% +90 bps Adjusted EPS* $0.84 +17% Q1 Performance +1% Organic Revenue: +90 bps Operating Margin: +25% Mo
Slide 6: Fluid Technology
Fluid Technology Significant Margin Expansion & Stabilizing Conditions Q1 Results $ millions 2010 vs 2009 Revenues $801 +8% Operating Income $91 +32% Operating Margin 11.4% +210 bps Restructuring & Realignment -$4 +$6 Q1 Performance Flat Organic Revenue: +3% Organic Orders: +5% R&CW; -1% WWW; -9% IP
Slide 7: ITT Acquisition of Nova Analytics
ITT Acquisition of Nova Analytics Strategic Rationale Business Overview 9 Extends ITT Global Leadership Positions 2010 Post-Acquisition Impacts: in Fluid, Industrial & Beverage Revenue ~$110M (9mths) EPS ~Neutral FY 2010; ~($0.02) Q2 9 Growing $6 Billion Analytical Premium Products: Instrume
Slide 8: Motion & Flow Control
Motion & Flow Control Exceptional Performance Q1 Results $ millions 2010 vs 2009 Revenues $387 +26% Operating Income $55 +96% Operating Margin 14.2% +500 bps Restructuring & Realignment -$1 +$1 Q1 Performance +25% Organic Revenue: +32% Organic Orders: +45% Motion; +28% Flow; +10% ICS +74% Motion; +3
Slide 9: Defense & Information Solutions
Defense & Information Solutions Exceeding Expectations Q1 Results $ millions 2010 vs 2009 Revenues $1,450 -4% Operating Income $146 -11% Operating Margin 10.1% -80 bps Restructuring -$12 -$12 Q1 Performance -4% Organic Revenue: -16% Organic Orders: Favorable to Expectations Strong PY Due to Large
Slide 10: 2010 Adjusted EPS Guidance
2010 Adjusted EPS* Guidance Raising Guidance on Strong Productivity & Improving Volume Low Mid High Previous FY 2010 Adjusted EPS* Guidance $ 3.90 $ 4.00 $ 4.10 Q1 Operating Performance, Net of Timing $ 0.07 Q2 - Q4 Improved Productivity & Commercial Volume $ 0.11 Net Operational Performance $ 0.18
Slide 11: 2010 ITT Outlook
2010 ITT Outlook Raising EPS Guidance on Strong Productivity; Stabilizing Markets Q2 Consolidated Guidance $ billions, except per share data vs 2009 Q2 Midpoints Total Organic ITT - Revenues ~$2.8B Flat -2% Adjusted EPS* Range $1.05 - $1.07 Flat Q2 Includes ($0.02) Nova Acq Dilution Full Year 2010 G
Slide 12: Appendix
APPENDIX Q1 2010 Q1 2010 Investor Review. For non-GAAP reconciliations, refer to appendix and www.itt.com/ir. April 30, 2010 P12
Slide 13: Q1 2010 ITT Segment Performance
Q1 2010 ITT Segment Performance Fluid Motion & Flow Defense ITT Q1 '10 Total Revenue vs PY 7.7% 26.5% -3.8% 3.1% FX -5.6% -2.7% 0.0% -2.0% Acquisition/Disposition -2.2% 1.0% 0.0% -0.5% Q1 '10 Organic Revenue vs PY -0.1% 24.8% -3.8% 0.6% Q1 '09 Margin 9.3% 9.2% 10.9% 10.2% Operational, Investments, O
Slide 14: Non-GAAP Reconciliations - EPS & FCF
Non-GAAP Reconciliations - EPS & FCF Q1 % Change EPS - Reconciliation 2009 2010 2010 vs 2009 Reported EPS $ 1.01 $ 0.79 -22% Discontinued Ops. $ 0.01 $ - Reported EPS - Continuing Ops. $ 1.02 $ 0.79 -23% Special Items: Tax Settlements, Healtcare Reform Act & Other Adjustments $ (0.30) $ 0.05 Adjuste