Engineering and manufacturing company ITT Corp. (ITT) on Wednesday reported a loss for the fourth quarter as higher revenues were more than offset by costs related to the spin-offs of the company's defense and water businesses.
White Plains, New York-based ITT said in late October that it completed the previously-announced spin offs of its Defense and Information Solutions business as well as its Water Technology and Services business. The water-related business is named Xylem, Inc. (XYL), while the defense and information solutions business is named Exelis, Inc. (XLS).
Following completion of the spin offs, ITT is now a $2 billion company with four businesses that deliver engineered and customized products and services to the industrial, aerospace, transportation, and oil and gas industries.
ITT recorded strong growth in emerging markets, especially in China and Brazil, in the quarter. In addition, the company completed the acquisition of Blakers Pump Engineers in Australia in the quarter. Blakers Pump Engineers is a long-time distributor of ITT's Goulds Pumps brand in Australia.
Industrial process revenues grew 12 percent in the quarter, while motion technologies revenues rose 20 percent and control technologies revenues increased 7 percent. However, Interconnect solutions revenues declined 4 percent.
Total segment orders for the quarter increased 9 percent from the year-ago period to $544 million, boosted by 31 percent growth in orders at the industrial process segment.
ITT's fourth-quarter net loss was $530 million or $5.68 per share compared to net income of $274 million or $2.96 per share in the prior-year quarter.
Loss from continuing operations for the quarter was $546 million or $5.86 per share, compared to income from continuing operations of $7 million or $0.07 per share in the year-ago quarter.
Excluding special items and including pro forma adjustments, adjusted pro forma income from continuing operations rose to $34 million or $0.36 per share from $28 million or $0.30 per share in the prior-year period.
On average, 4 analysts polled by Thomson Reuters expected the company to report earnings per share of $0.36 for the quarter. Analysts' estimates typically exclude one-time items.
Revenues for the quarter increased 10 percent to $518 million from $470 million in the same quarter last year. Analysts had a consensus estimate of $511.25 million. Revenues were up 10 percent organically.
For fiscal year 2011, ITT's revenues increased 11 percent to $2.1 billion, with strong growth in emerging markets.
Looking ahead to fiscal year 2012, ITT forecast adjusted earnings in a range of $1.62 to $1.72 per share and revenue growth of 5 to 7 percent, including expected market share gains as well as the impact of late-cycle strength in oil and gas and mining.
Analysts expect the company to earn $1.71 per share for the year on revenues of $2.26 billion.
ITT closed Tuesday's trading at $23.35, up $0.18 on a volume of 1.43 million shares.
by RTT Staff Writer
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