) reported strong second quarter 2012 results. Quarterly earnings
from continuing operations of 50 cents, was 35.1% above the Zacks
Consensus Estimate and was up 8.7% year over year. Profits were
driven by momentum across the company business segments.
On a GAAP basis earnings were 18 cents a share, 51.4% below the
Zacks Consensus Estimate and down 10% year over year.
Total revenue increased 2.7% to $567.5 million, compared to
$552.4 million in the prior-year period. Organic revenue grew 6%
for the quarter. Revenue was below the Zacks Consensus Estimate of
$570 million. The top line was driven by 18% U.S. growth, strength
in core markets such as mining, chemical and general industrial and
share gains in the global automotive market.
Revenue at the
segment was up 16% to $233 million while organic revenue grew 15%
compared to the prior year. This increase reflects strength across
all end-markets served in North America, global mining strength and
a 19% increase in aftermarket revenue.
declined 6% year over year to $155 million. However, organic
revenue increased 5%, when adjusted for foreign currency impact.
The growth was driven by global share gains in both automotive and
rail markets, which were more than offset by weakness in
revenue for the second-quarter of 2012 was $100 million, reflecting
an 8% decline, as strength in oil and gas connectors was more than
offset by general weakness in the European market combined with a
decrease in the communications connectors market. Organic revenue
for the segment also declined 5% compared to the prior-year.
, second-quarter total and organic revenue both declined 3% and 2%,
respectively, to $81 million. However, excluding the impact of a
prior-year rail project, revenue was up 4%, driven by growth in
commercial aerospace in North America and global general industrial
Income and Expenses
For the quarter, the company reported operating income of $57.7
million compared to $46.6 million in the prior-year quarter. This
was driven by increased volume and strong operating
Balance Sheet & Cash Flow
At the end of the quarter, cash and cash equivalents was $739.1
million with long-term debt of $4 billion and shareowner's equity
of $690.7 million.
Concurrent with the second quarter earnings release, the company
reiterated guidance for fiscal 2012. The company expects earnings
in the range of $1.62 to $1.72 per share. Total revenue is expected
to grow 5% to 7%, including expected market share gains as well as
the impact of late-cycle strength in oil & gas and mining.
The company also expects emerging markets to grow approximately
10% due to oil and gas in the Middle East and in South America,
automotive gains in China and new global platforms and
The company currently holds a Zacks Rank of #4 which implies a
short-term (1-3 months) Sell rating on the stock.
ITT CORP (ITT): Free Stock Analysis Report
To read this article on Zacks.com click here.