ITT Inc. · NYSE:ITT
ITT — Q2 2007 Earnings Presentation
10 slides from ITT's earnings presentation, Jul 27, 2007
Slide 1: Second Quarter 2007 Investor Review
Second Quarter 2007 Investor Review July 27, 2007
Slide 2: 2Q Highlights
2Q Highlights • 10.5% organic revenue growth • Double-digit organic revenue growth in each segment • 13.2% organic order growth • Balanced across end-markets and geographies • Portfolio realignment continues • Motion & Flow becomes “third leg” with IMC acquisition • Sale of Switches business closes
Slide 3: Financial Results
Financial Results 2Q06 2Q07 $1,964 $2,223 Revenues • Organic Growth +10.5% +13% • Strong contribution from each segment $309 Segment $255 • Segment operating margin improves by Operating 90 basis points to 13.9% Income* +21% $0.92 EPS* $0.76 • Leveraging top-line growth and productivity improvements
Slide 4: Fluid Technology
Fluid Technology Revenues Operating Income Operating Margin $879 $120 $103 13.5% 13.6% $765 +15% +16% +10 bps 2Q06 2Q07 2Q06 2Q07 2Q06 2Q07 Q2 Highlights • Organic Revenue Growth +10% • Flygt and AWT combined to create driven by strong international sales “Water & Wastewater” • Water & Wastewater +9
Slide 5: Defense Electronics & Services
Defense Electronics & Services Operating Operating Backlog Revenues Income Margin $3,569 $3,436 $1,017 $919 13.2% $134 11.0% $101 (4%) +11% +32% +220 bps 2Q06 2Q07 2Q06 2Q07 2Q06* 2Q07* 2Q06 2Q07 Q2 Highlights • Revenue surpasses $1B for the first • Operating income margin strength time driven by st
Slide 6: Motion & Flow Control
Motion & Flow Control Revenues Operating Income Operating Margin $330 $55 $50 $285 17.5% 16.8% +16% +11% (70) bps 2Q06 2Q07 2Q06* 2Q07* 2Q06 2Q07 Q2 Highlights • Organic Revenue Growth +11% • Strong North American and Asian • Connectors +12% Connector market • Marine & Leisure +9% • Aerospace Contro
Slide 7: 2007 Earnings Outlook
2007 Earnings Outlook ($ in Millions except EPS) yr/yr yr/yr 2Q06 3Q07 Growth* FY06 FY07 Growth* Revenue $ 2,100 - $ 2,165 6.6% $ 7,808 $ 8,550 - $ 8,655 10.2% Segment OI Margin 13.2% - 13.4% 60 bps 12.5% 13.2% - 13.5% 90 bps EPS** $ 0.88 - $ 0.90 15.6% $ 2.85 $ 3.44 - $ 3.50 21.8% FCF Conversion 13
Slide 8: Appendix
S itt Engineered for life Appendix
Slide 9: Non-GAAP Reconciliations - EPS
Non-GAAP Reconciliations - EPS 2Q06 2Q07 Adjusted EPS from Continuing Ops. $ 0.76 $ 0.92 Restructuring, Net $ (0.04) $ (0.07) Tax Settlement/Other $ - $ 0.23 EPS from Continuing Ops. $ 0.72 $ 1.08 Discontinued Ops. $ 0.03 $ 0.08 Reported EPS $ 0.75 $ 1.16 8
Slide 10: Non-GAAP Reconciliations – Segment Operating Income
Non-GAAP Reconciliations – Segment Operating Income 2Q06 2Q07 Defense Electronics & Services Op. Income, as adj $ 101.4 $ 134.1 Restructuring $ (0.8) $ (4.3) Op. Income, as reported $ 100.6 $ 129.8 Fluid Technology Op. Income, as adj $ 103.2 $ 119.7 Restructuring $ (1.9) $ (10.2) Op. Income, as repo