ITT Inc. · NYSE:ITT
ITT — ITT Industries — Q2 2004 Earnings Presentation
12 slides from ITT's earnings presentation, Jul 23, 2004
Slide 1: Second Quarter 2004 Investor Review
Second Quarter 2004 Investor Review July 23, 2004
Slide 2: Financial Results Adjusted for Reported Special Items
Financial Results Adjusted for 1 Reported Special Items 2Q03 2Q04 2Q03 2Q04 $1,652.5 • Organic Growth 10% $1,438.2 Revenues – Growth across all +14.9% segments $176.1 $188.8 $159.8 $165.4 • Higher volume Segment Operating • All segments contributed +10.2% + 14.1% to increase Income $1.18 $1.17 • Net
Slide 3: Net Income / EPS
Net Income / EPS $, Millions except EPS 2 2Q03 2Q04 $∆ Income from Operations 165.4 188.8 + 23.4 Corporate Expense (18.0) (19.6) (1.6) Interest, Net (5.8) (5.4) + 0.4 Other (2.1) (3.1) (1.0) Taxes (1) (43.4) (49.8) (6.4) Income before special items 96.1 110.9 + 14.8 Special Items(2) 3.8 1.1 (2.7) Ne
Slide 4: Special Items
Special Items 3 2Q03 2Q04 $, Millions except per share Per Share Pre-Tax Af t er-Tax Per Share Reported EPS $ 1.06 $ 1.18 Rest ruct uring, Net $ (0.04) $ (14.3) $ (9.9) $ (0.10) Tax Set t lement s $ 11.7 $ 0.12 Discont inued Operat ions $ 0.08 $ (1.0) $ (0.7) $ (0.01) Less Total Special Items $ 0.04
Slide 5: Cash from Operations
Cash from Operations $, Millions 4 1H03 1H04 Income from Continuing Ops 178.8 200.8 Depreciation 83.2 87.3 Amortization 10.2 9.8 Working Capital (101.1) (161.5) Pension Pre-funding (200.0) (100.0) Other (4.5) 21.1 CFOA (33.4) 57.5 Capital Expenditures (57.7) (63.5) Pension Pre-funding 200.0 100.0 Fr
Slide 6: Balance Sheet
Balance Sheet 5 $, Millions Dec 31, 03 Mar 31, 04 Jun 30, 04 Short Term Debt 141.5 414.6 359.7 Long Term Debt 383.3 379.4 379.4 FAS 133 Impact 77.6 92.2 61.1 Total Debt 602.4 886.2 800.2 Cash & Cash Equivalents 414.2 199.1 219.5 Net Debt 188.2 687.1 580.7 EBITDA Coverage 32.1x 35.5x 36.9x Net Debt/E
Slide 7: Fluid Technology
6 Fluid Technology Revenues Operating Income Operating Margin 650.9 570.6 74.1 78.9 13.0% 12.1% +14.1% +6.5% (90) bps 2Q03 2Q04 2Q03 2Q04 2Q03 2Q04 Financial Highlights Market Highlights • Organic Revenue Growth +5% • Recent wins reflect attractive growth • Water/Wastewater +6% opportunities as W/WW
Slide 8: Defense Electronics & Services
Defense Electronics & Services 7 Operating Operating Backlog Revenues Income Margin 3,050 3,216 55.8 10.5% 530.7 10.3% 452.4 46.7 +5.4% +17.3% +19.5% +20 bps 2Q03 2Q04 2Q03 2Q04 2Q03 2Q04 2Q03 2Q04 Financial Highlights Market Highlights • 2Q Revenue Growth All Organic • Double digit tactical communi
Slide 9: Motion & Flow Control
8 Motion & Flow Control Revenues Operating Income Operating Margin 281.3 43.7 262.7 40.0 15.2% 15.5% +7.1% +9.3% +30 bps 2Q03 2Q04 2Q03 2Q04 2Q03 2Q04 Financial Highlights Market Highlights • Organic Revenue Growth of 3% • Continued new product success at • Leisure Marine +8% Leisure Marine • Fricti
Slide 10: Electronic Components
Electronic Components 9 Operating Operating Orders Revenues Income Margin 191.4 10.4 5.4% 184.5 145.5 153.7 3.0% 4.6 +26.8% +24.5% +126% +240 bps 2Q03 2Q04 2Q03 2Q04 2Q03 2Q04 2Q03 2Q04 Financial Highlights Market Highlights • 2Q Orders +23% organically • Pricing pressure easing • YTD Book-to-Bill o
Slide 11: 2004 Earnings Outlook
2004 Earnings Outlook 10 3Q04 FY04 Segment Revenue OI Margin Revenue OI Margin Fluid Technology $640 - 660 12.5 – 12.7% $2,500 – 2,550 12.0 – 12.3% Defense $585 - 595 10.4 – 10.6% $2,250 – 2,325 10.3 – 10.6% Electronics Motion & $230 - 240 13.5 – 13.8% $1,000 – 1,025 14.5 – 15.0% Flow Control Electr
Slide 12: ITT Industries
ITT Industries Engineered for life