ITT Inc (ITT)

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25 APR 2008

NEW YORK (Reuters) - ITT Corp (ITT.N: Quote, Profile, Research) said on Friday first-quarter profit rose a greater-than-expected 23 percent, helped by stronger sales of its defense and water treatment gear and the effects of foreign currency.

The company, which makes military electronics, sewage treatment equipment and a range of other products, much of it for export, also raised its full-year profit forecast above Wall Street's estimates.

The White Plains, New York-based company reported quarterly net income of $172 million, or 94 cents per share, compared with $140 million, or 76 cents per share, a year earlier.

Excluding one-time items, it reported a profit of 91 cents per share from continuing operations, well ahead of Wall Street's average forecast of 82 cents per share, according to Reuters Estimates.

Sales rose 36 percent to $2.8 billion, with gains in each of its main units, helped by recent acquisitions and the weak dollar.

ITT bought defense electronics manufacturer EDO Corp last year for about $1.7 billion and International Motion Control for about $400 million, which makes industrial and aviation products.

ITT Corp, the largest surviving remnant of the old ITT conglomerate, which was broken up in the 1990s, has been selling off its lower-margin businesses and expanding its core units focusing on defense, water treatment and motion control.

Citing strength in those main businesses, ITT forecast earnings of $4.00 to $4.10 per share for the full year, up from its last forecast of $3.80 to $3.95 per share. Analysts are expecting $3.94 per share on average.

(Reporting by Bill Rigby; Editing by Mark Porter and Steve Orlofsky)