ITT Inc. · NYSE:ITT
ITT — ITT Industries — Q1 2005 Earnings Presentation
13 slides from ITT's earnings presentation, Apr 29, 2005
Slide 1: First Quarter 2005 Investor Review
First Quarter 2005 Investor Review A pr il 29, 2005
Slide 2: Financial Results ($, Millions except EPS)
Financial Results ($, Millions except EPS) 1 Adjusted for Reported Special Items 1Q04 1Q05 1Q04 1Q05 $1,883.1 • Organic Growth +13% $1,511.1 – Led by Defense and Revenues Water/Wastewater +24.6% $192.9 • Capturing increased Segment $173.5 $152.4 percentage of revenue gains $147.8 Operating Income +1
Slide 3: Net Income / EPS
Net Income / EPS $, Millions except EPS 2 1Q04 1Q05 Δ Income from Operations $152.4 $ 192.9 + $40.5 Corporate Expense (17.3) (21.9) - 4.6 Interest, Net(1) (5.3) (11.5) - 6.2 Other (2.3) (5.0) - 2.7 Taxes (1) (39.6) (47.9) - 8.3 Income before special items 87.9 106.6 + 18.7 Special Items(2) 1.0 9.9 +
Slide 4: Special Items
Special Items 3 1Q04 1Q05 $, M illions except per share Per Share Pre-Tax After-Tax Per Share Reported EPS $ 0.94 $ 1.24 Restructuring, Net $ (0.03) $ (19.4) $ (13.4) $ (0.14) Tax Settlements (Incl Interest Income) $ 0.05 $ 6.3 $ 34.0 $ 0.36 Other - Debt Repayment $ (0.01) $ - $ - $ - Discontinued O
Slide 5: Cash from Operations
Cash from Operations $, Millions 4 1Q04 1Q05 Income from Continuing Ops $ 89.0 $ 127.2 Depreciation 43.7 47.1 Amortization 4.9 8.4 Working Capital (118.0) (86.5) Pension Pre-funding (100.0) (100.0) Other (34.0) 16.2 CFOA (114.4) 12.4 Capital Expenditures (28.9) (30.4) Pension Pre-funding 100.0 100.0
Slide 6: Balance Sheet
Balance Sheet 5 $, Millions Mar 31, 04 Dec 31, 04 Mar 31, 05 Short Term Debt $414.6 $ 729.2 $ 905.0 Long Term Debt 379.4 461.2 461.2 FAS 133 Impact 92.2 81.6 74.4 Total Debt 886.2 1,272.0 1,440.6 Cash & Cash Equivalents 199.1 262.9 336.3 Net Debt $687.1 $1,009.1 $1,104.3 EBITDA Coverage 35.5x 26.1x
Slide 7: Fluid Technology ($, Millions)
6 Fluid Technology ($, Millions) Revenues Operating Income Operating Margin $639.6 $574.9 $62.5 9.7% $55.8 9.8% +11.3% +12.0% +10 b.p. 1Q04 1Q05 1Q04 1Q05 1Q04 1Q05 Financial Highlights Market Highlights • Organic Revenue Growth +7% • Water/wastewater bid activity • Wastewater +11% continues to be s
Slide 8: Defense Electronics & Services ($, Millions)
Defense Electronics & Services ($, Millions) 7 Operating Operating Backlog Revenues Income Margin $3,516 $775.7 $77.8 $3,161 9.6% 10.0% $506.5 $48.7 +11.2% +40b.p. +53.1% +59.8% 1Q04 1Q05 1Q04 1Q05 1Q04 1Q05 1Q04 1Q05 Financial Highlights Market Highlights • Organic Revenue Growth +26% • Night Visio
Slide 9: Motion & Flow Control ($, Millions)
8 Motion & Flow Control ($, Millions) Revenues Operating Income Operating Margin $44.2 $297.6 $39.3 14.3% 14.9% $274.0 +8.6% +12.5% +60 b.p. 1Q04 1Q05 1Q04 1Q05 1Q04 1Q05 Financial Highlights Market Highlights • Organic Revenue Growth +5% • Continued market traction for Friction • Ex Auto Tubing +10
Slide 10: Electronic Components ($, Millions)
Electronic Components ($, Millions) 9 Operating Operating Orders Revenues Income Margin $186.5 $180.1 $173.7 $8.6 5.5% $157.4 $8.4 4.8% (3.4)% +10.4% (2.3)% (70)b.p. 1Q04 1Q05 1Q04 1Q05 1Q04 1Q05 1Q04 1Q05 Financial Highlights Market Highlights • Book-to-Bill of 1.04x • Increasing demand for key pro
Slide 11: Earnings Outlook Update
Earnings Outlook Update 10 Current 2005 Guidance $5.00 – 5.15 • Defense’s strong revenue growth rate +10c • Growth from Friction Materials and Marine +5c • Strength of Water/Wastewater and Industrial +3c • Keypad performance at Electronic Components -3c • Interest and other expenses -5c Revised 2005
Slide 12: 2005 Earnings Outlook ($, Millions except EPS)
2005 Earnings Outlook ($, Millions except EPS) 11 Revenue Segment 2Q05 FY05 Fluid Technology $695 – 715 $2,750 – 2,800 Margin 12.2 – 12.3% 12.3 – 12.5% Defense Electronics $725 – 740 $2,900 – 2,975 Margin 9.8 – 10.0% 10.0 – 10.2% Motion & Flow Control $285 – 295 $1,075 – 1,125 Margin 15.8 – 16.0% 15
Slide 13: ITT Industries
ITT Industries Engineered for life