The Rising Influence of Rising Affluence

[DewDiligence]

ITT 4Q10 Profit Tops Street Estimates

[ITT shares have remained elevated since the Jan-12 announcement of a plan to split into three companies (#msg-58711301). The industrial and water successor companies will be strong beneficiaries of The Global Demographic Tailwind; however, pending more details about the separation, I consider ITT more of a hold than a buy.]

http://www.reuters.com/article/2011/02/03/itt-idUSN0110897820110203?feedType=RSS&feedName=companyNews&rpc=43

›Thu Feb 3, 2011 8:08am EST

Feb 3 (Reuters) - Diversified manufacturer ITT Corp (ITT) posted a higher-than-expected quarterly profit as revenue rose in defense, its biggest segment.

ITT, which is planning to split into three companies this year, said fourth-quarter net income rose to $269 million, or $1.44 a share, from $199 million, or $1.08 a share, a year earlier. Excluding items, profit was $1.36 a share. Analysts on average expected $1.26, according to Thomson Reuters I/B/E/S.

Quarterly revenue rose 8 percent to $3.03 billion.

Sales in the defense unit, the company's largest, rose 5 percent to $1.6 billion, aided by demand for tactical radios and devices that prevent the initiation of bombs. Revenue was up 16 percent in the water management segment and flat in the motion and flow control division, which serves rail and aerospace markets.

ITT stood by a prior forecast calling for 2011 profit of $4.62 to $4.82 a share, excluding effects from the separation plan.

The company forecast adjusted profit of 88 cents to 92 cents a share for the current first quarter. Analysts currently expect $1.02.

ITT joined other companies, including Fortune Brands (FO), when it announced this year that it would split operations to boost value as commercial and industrial end markets bounce back.

After the break-up, ITT Corp will supply airplane parts and products for energy and other commercial markets. The company plans to spin off its defense and water technology businesses to shareholders in tax-free transactions.‹