ITT Corp. (ITT) Thursday reported a better-than-expected jump in first-quarter profit, due mainly to lower income tax expenses and the absence of discontinued operations-related losses of last year.
Revenues improved on growth in key end-markets such as energy and transportation, and contribution from the recently acquired Bornemann Pumps business, but was largely offset by flat segment-operating margins.
ITT makes engineered critical components and customized technology solutions for the energy, transportation, and industrial markets.
The White Plains, New York-based company posted quarterly net income of $21 million or $0.22 per share, compared to $3 million or $0.03 per share last year.
Results for the prior year included a loss of $7 million related to discontinued operations.
Excluding items, adjusted earnings for the quarter were $44 million or $0.47 per share, compared to $37 million or $.39 per share a year ago. On average, six analysts polled by Thomson Reuters estimated earnings of $0.43 per share for the quarter. Analyst estimates typically exclude one-time items.
Revenues for the first quarter increased 7 percent to $608 million from $568 million a year ago.
Analysts, on consensus, estimated revenues of $611.52 million for the quarter.
The company benefited from a stronger operational performance, improved volumes and favorable mix. Sales in emerging markets rose 11 percent, with organic revenue up 2 percent.
At Industrial Process segment, which makes pumps and valves, revenue was up 14 percent. Interconnect Solutions and Control Technologies businesses each slid 2 percent, while Motion Technologies saw organic growth of 7 percent.
Results also benefited by lower income tax expenses at $15 million, compared to $26 million a year earlier.
For fiscal year 2013, ITT continues to expect adjusted earnings of $1.80 to $1.90 per share and revenues to grow 9 to 11 percent.
Analysts currently estimate earnings of $1.90 per share on revenues of $2.46 billion for the year.
ITT stock is trading at $27.48, up 0.86%, on a volume of 456 thousand shares on the NYSE.
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