ITT's 3Q numbers underscore benefits of spin-off
WHITE PLAINS, N.Y. (AP) — ITT Corp. fared better in the third quarter than analysts anticipated, providing further validation for a spin-off that streamlined the company's operations last year.
The results announced Friday also included some divisions that have or will be discontinued. Those changes affected the way investors assessed the numbers.
The company, which is based in White Plains, N.Y., now focuses on supplying parts and services to the oil, gas, chemicals, mining, aerospace, industrial and transportation markets. A little over a year ago, ITT spun off its water-management business into Xylem Inc. and its defense segment into Exelis Inc.
The latest quarter indicated ITT is doing better as a smaller business.
ITT's net income slid 33 percent from last year to $73 million, or 78 cents per share. That compared to net income of $108.5 million, or $1.17 per share, a year ago.
The company's performance looked much better after subtracting the contributions from segments that are no longer part of ITT's ongoing business. On that basis, the company swung from a $29.5 million loss last year to a profit of $60.8 million in this year's three-month period ending in September.
Excluding one-time costs and other accounting items unrelated to its ongoing business, ITT said it earned 44 cents per share. That figure was a nickel above the average estimate among analysts surveyed by FactSet.
Revenue climbed 8 percent from last year to $556 million — about $17 million above analysts' projections.
ITT's industrial process division, which makes pumps and valves for the oil, gas, chemical, mining and industrial markets, propelled the growth. The division's revenue surged 27 percent from last year.
The company maintained its previous forecast calling for full-year earnings of $1.67 per share, the midpoint in a range of $1.64 to $1.70 a share. Analysts are expecting $1.68 a shares.
ITT Chief Executive Denise Ramos credited the spin-off for the company's recent strides. "We can clearly see the benefits of our transformation," she said.
ITT stock rose 42 cents, or 2 percent, to $21.86 in early afternoon trading.