Diversified engineered products company ITT Corp. (ITT), Tuesday revealed a realignment of its defense segment to enable better integration of its product portfolio, encourage a more coordinated market approach and reduce operational redundancies. The defense segment will be renamed ITT Defense and Information Solutions with the current organizational structure, comprising of seven separate business units to be consolidated into three larger ones.
The New York-based company's Electronic Systems and Communications Systems divisions, as well as a portion of the Intelligence & Information Warfare division, will be merged to form a more versatile Electronic Systems division. It will be based in Clifton, New Jersey and will deliver advanced protection measures that work together to help ITT's customers defend their networks and disable enemy networks.
The Space Systems and Night Vision divisions will merge to form Geospatial Systems, based in Rochester, New York, and will provide networked sensors. The Advanced Engineering & Sciences and Systems divisions will be combined with a portion of the Intelligence & Information Warfare division to form the Information Systems division, based in Herndon, Virginia. The division will be focused on networked decision support solutions.
ITT noted that the realignment would not impact the previously announced outlook for full year 2010 earnings in the range of $3.85 to $4.05 per share. Analysts currently expect the company to earn $4.01 per share for the full year.
Chairman, President and Chief Executive Officer, Steve Loranger said "We are positioning ITT to support our customers' emerging technology needs, while also greatly enhancing our ability to stake out new markets. We believe this move will also allow ITT to achieve greater operating efficiencies and optimize our cost structure, which will help drive successful business strategies for continued top-line growth."
ITT is currently trading at $48.70, down $0.85 or 1.72%, on a volume of 2.49 million shares on the NYSE.
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