ITT Inc. · NYSE:ITT
ITT — ITT Industries — Q4 2004 Earnings Presentation
13 slides from ITT's earnings presentation, Jan 28, 2005
Slide 1: Fourth Quarter 2004 Investor Review
Fourth Quarter 2004 Investor Review January 28, 2005
Slide 2: Financial Results – As Reported
Financial Results – As Reported 1 4Q03 4Q04 FY03 FY04 • Strong Organic Growth $1,943 $6,764 $5,611 • 4Q +13%, FY +12% Revenues $1,514 +28.3% +20.6% • Led by Defense & W/WW $717.3 • Before Restructuring Segment $202.7 $607.9 $163.5 Operating • 4Q +23%, FY +18% Income +24.0% +18.0% • FY Growth in all
Slide 3: Net Income / EPS
Net Income / EPS 2 4Q03 4Q04 $∆ FY03 FY04 $∆ Income from Operations $176.2 $216.1 +$39.9 $636.7 $753.3 +$116.6 Corporate Expense (21.5) (21.7) (0.2) (73.4) (80.7) (7.3) Interest, Net(1) (4.5) (12.8) (8.3) (22.2) (32.1) (9.9) Other (3.1) (7.0) (3.9) (7.9) (16.5) (8.6) Taxes (1) (46.9) (54.1) (7.2) (1
Slide 4: Special Items
Special Items 3 4Q03 4Q04 FY03 FY04 Reported EPS $ 1.15 $ 1.29 $ 4.29 $ 4.58 Rest ruct uring, Net (0.09) (0.10) (0.22) (0.28) Tax Set t lement , Net 0.20 (0.01) 0.29 0.18 Int erest Income - - 0.22 0.02 Sale of Invest ment s, Net - 0.15 - 0.15 Ot her (0.02) (0.03) 0.11 (0.05) Less Total Special Items
Slide 5: Cash from Operations
Cash from Operations $, Millions 4 2003 2004 Income from Continuing Ops $394.0 $437.5 Depreciation 166.3 175.8 Amortization 20.6 22.8 Working Capital 87.8 (68.1) Pension Pre-funding (200.0) (100.0) Other 111.0 60.6 CFOA 579.7 528.6 Capital Expenditures (153.3) (165.1) Pension Pre-funding 200.0 100.0
Slide 6: Balance Sheet
Balance Sheet 5 $, Millions Dec 31, 03 Sep 30, 04 Dec 31, 04 Short Term Debt $141.5 $1,019.5 $ 729.2 Long Term Debt 383.3 360.9 461.2 FAS 133 Impact 77.6 82.0 81.6 Total Debt 602.4 1,462.4 1,272.0 Cash & Cash Equivalents 414.2 253.9 262.9 Net Debt $188.2 $1,208.5 $1,009.1 EBITDA Coverage 32.2x 32.6x
Slide 7: Fluid Technology
Fluid Technology 6 Fourth Quarter Full Year 2003 2004 % Chg 2003 2004 % Chg Revenues $611.6 $749.1 22.5% $2,249.9 $2,594.1 15.3% Operating Income $79.6 $89.9 12.9% $285.2 $305.2 7.0% Operating Margin 13.0% 12.0% (100) b.p. 12.7% 11.8% (90) b.p. Financial Highlights Market Highlights • 4Q Orders +32%
Slide 8: Defense Electronics & Services
Defense Electronics & Services 7 Fourth Quarter Full Year 2003 2004 % Chg 2003 2004 % Chg Backlog $3,185.2 $3,457.4 8.5% Revenues $501.2 $746.6 49.0% $1,790.9 $2,414.0 34.8% Operating Income $58.9 $77.8 32.1% $188.1 $254.1 35.1% Operating Margin 11.8% 10.4% (140) b.p. 10.5% 10.5% flat Financial High
Slide 9: Motion & Flow Control
Motion & Flow Control 8 Fourth Quarter Full Year 2003 2004 % Chg 2003 2004 % Chg Revenues $248.5 $272.4 9.6% $992.3 $1,070.5 7.9% Operating Income $31.4 $37.8 20.4% $139.1 $154.0 10.7% Operating Margin 12.6% 13.9% + 130 b.p. 14.0% 14.4% + 40 b.p. Financial Highlights Market Highlights • Organic reve
Slide 10: Electronic Components
Electronic Components 9 Fourth Quarter Full Year 2003 2004 % Chg 2003 2004 % Chg Orders $162.1 $172.2 6.2% $586.1 $705.4 20.4% Revenues $155.0 $178.6 15.2% $585.7 $696.9 19.0% Operating Income $6.3 $10.6 68.3% $24.3 $40.0 64.6% Operating Margin 4.1% 5.9% + 180 b.p. 4.1% 5.7% + 160 b.p. Financial Hig
Slide 11: 2005 Earnings Outlook
2005 Earnings Outlook 10 Revenue Segment 1Q05 FY05 Fluid Technology $590 – 610 $2,650 – 2,750 Margin 9.6 – 9.8% 12.4 – 12.8% Defense Electronics $660 – 690 $2,750 – 2,850 Margin 9.5 – 9.7% 10.0 – 10.2% Motion & Flow Control $275 – 285 $1,050 – 1,100 Margin 15.1 – 15.3% 14.8 – 15.3% Electronic Compon
Slide 12: Summary
Summary 11 • Going into 2005 with strong momentum • Recent quarter represents the strongest revenue growth seen all year • Strength in key end markets • ITT is determined to achieve previously stated 2008 targets of $7-8 EPS, 12-16% EPS CAGR • On the path to meet our commitment • Efforts underway to
Slide 13: ITT Industries
ITT Industries Engineered for life