ITT posts 4Q net income of $32.4M
WHITE PLAINS, N.Y. (AP) — ITT Corp. said Wednesday that it posted fourth-quarter net income of $32.4 million in contrast to a loss a year ago that included hefty charges related to its split into three separate companies.
Also on Wednesday, ITT said it will buy back an additional $75 million in stock and boost its dividend by 10 percent to 10 cents. The dividend will be paid on April 1 to shareowners of record as of March 15.
Its shares rose more than 2 percent in midday trading.
The company, which supplies parts and services to the oil, gas, chemicals, mining, aerospace, industrial and transportation markets, earned 35 cents per share. It lost $529 million, or $5.68 per share, in the same period a year ago.
In October 2011, ITT completed the spinoff of its defense and information solutions and its water technology and services businesses. Expenses related to that largely accounted for the year-ago loss.
Excluding one-time items, ITT posted adjusted earnings of 37 cents per share in the latest quarter compared with an adjusted 36 cents per share a year ago. That matched analysts' average expectations, according to FactSet.
Revenue rose 9 percent to $554.3 million from $509.9 million. That beat the $534.8 million that analysts expected.
Revenue at the company's industrial process business jumped 22 percent to $257 million, helped by stronger North American demand, as well as growth in the global oil and gas and chemical markets. Motion technologies revenue increased 3 percent to $140 million, but revenue at the company's interconnect solutions business fell 8 percent to $92 million and control technologies revenue was flat at $68 million.
For the full year, the company earned $125.4 million, or $1.33 per share, compared with a loss of $129.5 million, or $1.40 per share, in 2011. Revenue increased to $2.23 billion from $2.09 billion.
ITT projected a 2013 profit of $1.80 to $1.90 per share on revenue growth of 9 percent to 11 percent. Based on the company's 2012 results, the guidance implies 2013 revenue of $2.43 billion to $2.47 billion.
Analysts expect earnings of $1.89 per share on $2.44 billion in revenue, according to FactSet.
ITT shares rose 61 cents, or 2.4 percent, to $25.85 in midday trading. They have risen 10.3 percent so far this year.