ITT Inc. · NYSE:ITT

ITT — Q3 2010 Earnings Presentation

15 slides from ITT's earnings presentation, Oct 29, 2010

  1. Slide 1: Investor Review Q3 2010

    October 29, 2010 Investor Review Q3 2010

  2. 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.

  3. Slide 3: Q3 ITT Overview

    Q3 ITT Overview Strong Execution Funding Investments In Future Growth 9 Q3 Adjusted EPS* of $1.08; +$0.12 vs Guidance Strategic 9 2010 Acquisitions Accretive – Already! Execution 9 Raising 2010 Adjusted EPS* Guidance Midpt to $4.30 ƒ +15% vs 2009; +8% vs 2008 ƒ Record ITT Performance 9 Organic Order

  4. Slide 4: Q3 ITT Results

    Q3 ITT Results Strong Orders & Exceptional Productivity Q3 Results - Continuing Operations $ millions, except per share amounts 2010 vs 2009 Revenues $2,643 Flat Segment Operating Income $339 -3% Segment Operating Margin 12.8% -40 bps Adjusted EPS* $1.08 +6% Flat Total Revenue -40 bps Segment Operat

  5. Slide 5: Q3 ITT Financial Position

    Q3 ITT Financial Position Strong Free Cash Flow & Disciplined Deployment Net Debt to Net Capital Disciplined Capital Deployment ƒ $912M Cash & Cash Equivalents ƒ $480M Free Cash Flow* ƒ $279M Short-Term Debt ƒ FY FCF Target >100% of Net Income** ƒ New Replacement Revolving Credit 30.0% Facility $1.5

  6. Slide 6: Fluid Technology

    Fluid Technology Solid Acquisition & Organic Performance Q3 Results $ millions 2010 vs 2009 Revenues $920 +11% Operating Income $116 +7% Operating Margin 12.6% -50 bps Restructuring & Realignment -$1 +$4 +3% Organic Revenue +5% Organic Orders +6% WWW; +4% R&CW; -5% IP +12% IP; +10% R&CW; +3% WWW ƒ S

  7. Slide 7: Motion & Flow Control

    Motion & Flow Control Continued Exceptional Performance Q3 Results $ millions 2010 vs 2009 Revenues $360 +17% Operating Income $45 +13% Operating Margin 12.5% -50 bps Restructuring & Realignment -$1 +$1 +22% Organic Revenue +20% Organic Orders +37% ICS; +19% Motion Tech; +17% Control +37% Control; +

  8. Slide 8: Defense & Information Solutions

    Defense & Information Solutions Strong Orders & Productivity Q3 Results $ millions 2010 vs 2009 Revenues $1,366 -9% Operating Income $178 -11% Operating Margin 13.0% -30 bps Restructuring -$1 +$1 -9% Organic Revenue -30 bps Operating Margin -5% IS; -11% GS; -13% ES ƒ +50 bps Operating Productivity ƒ

  9. Slide 9: Defense Awards

    Defense Awards Winning the Future Changing Backlog Dynamics >$10B Funded and Unfunded Metric* ƒ Diversified Customer Base ƒ Supports Long-Term Revenue Base ƒ Increasing Protest Activities ƒ Includes Key Programs: ƒ Change in Order Patterns ƒ ADS-B; Army Prepositioned Stock; $4.3B Q3 Funded Backlog A

  10. Slide 10: Q3 Events

    Q3 Events Q3 Annual Asbestos Update ƒ Part of our normal annual accounting process. ƒ Future reserve updates could involve increases or decreases. ƒ Total after-tax charge of ($198) million, or ($1.07) per share. • Increased net liability by $331 million. • Liability is undiscounted and includes est

  11. Slide 11: 2010 ITT Outlook

    2010 ITT Outlook Forecasting Record Adjusted EPS; +15% vs PY Adjusted EPS Rollforward Low Mid High Previous Full Year 2010 EPS Guidance* $ 4.08 $ 4.13 $ 4.18 Q3 Performance: Favorable Acquisition Performance $ 0.05 Corporate & Other Favorability $ 0.04 Operating Performance $ 0.03 Q4 Performance: Op

  12. Slide 12: Appendix

    ¥ itt Appendix Q3 2010 UY my Engineered for life

  13. Slide 13: Q3 2010 ITT Segment Performance

    Q3 2010 ITT Segment Performance Strong Operating Productivity Fluid Motion Defense ITT Q3 '10 Total Revenue vs PY 11.4% 17.3% -9.5% 0.1% FX 2.1% 4.8% 0.1% 1.2% Acquisition/Disposition -10.5% 0.0% -0.1% -3.3% Q3 '10 Organic Revenue vs PY 3.0% 22.1% -9.5% -2.0% Q3 '09 Margin 13.1% 13.0% 13.3% 13.2% Op

  14. Slide 14: Non-GAAP Reconciliations - EPS & FCF

    Non-GAAP Reconciliations - EPS & FCF Q3 % Change EPS - Reconciliation 2009 2010 2010 vs 2009 Total Reported EPS $ 0.32 $ 0.78 144% Discontinued Items: Gain on CAS Sale $ (0.70) Asbestos Net Liability Adjustment $ (0.03) Other $ 0.03 $ 0.02 Continuing Ops. - Reported EPS $ 0.35 $ 0.07 -80% Continuing

  15. Slide 15: Q3 Asbestos Update

    Q3 Asbestos Update $ millions, except EPS As of Change vs Balance Sheet 9/30/2010 6/30/10 Continuing Operations: Costs Including Legal $1,382 $532 Insurance & Recoveries ($766) ($191) Net Liability - Continuing $616 $341 Discontinued Operations: Costs Including Legal $246 $168 Insurance & Recoveries

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