ITT Corporation (
reportedfirst quarter 2013 earnings per share of 47 cents, which
were 9.3% above the Zacks Consensus Estimate of 43 cents.
Earnings were up 21% year over year. Profits during the quarter
were driven by stronger operational performance, improved volumes
and favorable mix.
On a GAAP basis, the company reported earnings of 20 cents a
share compared to 11 cents a share in the year-ago quarter.
Total revenue in the quarter increased 7.1% to $608.2 million
compared to $568.1 million in the prior-year period. Organic
revenue for the quarter grew 2% for the quarter. Revenue growth
during the quarter was driven by 11% increase in emerging
markets. In addition, gains in key global end-markets including
energy and transportation and a solid performance from the
recently acquired Bornemann Pumps business all contributed the
segment reported revenues of $257 million, reflecting 14.0%
increase. Organic revenues were flat compared to the prior year.
Results during the quarter were driven by 28% increase in organic
global oil and gas shipments as well as the impact from the
company's successful acquisition of Bornemann Pumps, partially
offset by mining declines in emerging markets.
Revenues in the
increased 7% to $193 million, driven by significant gains in the
global automotive brake pad market. The top line also reflected a
24% increase in the United States, 20% growth in emerging markets
and 3% growth in difficult Western European automotive markets,
which was partially offset by weakness in the global rail shock
revenue for the quarter declined 2% to $91 million, as gains in
general industrial and oil and gas connectors were offset by
weakness in European aerospace, transportation and communication
connectors. Organic revenue declined 1%.
, revenue decreased 2% to $69 million as growth in North American
and European aerospace was offset by declines related to the
fulfillment of an aerospace program and weakness in the global
general industrial and defense markets.
Income and Expenses
For 2012, the company reported operating income of $37.2
million compared to $36.7 million in the prior-year quarter. The
increase was driven by increased volume and strong operating
productivity, partially offset by negative project mix shift and
post-spin incremental recurring costs.
Balance Sheet & Cash Flow
At the end of the quarter, cash and cash equivalents were
$483.1 million with no long-term debt. The company had
shareowner's equity of $662.7 million.
Concurrent with the full year earnings release, the company
announced 2013 guidance. ITT expects adjusted earnings per share
to increase 10% in the range of $1.80 to $1.90 per share. The
guidance reflects a $0.02 negative impact from the recent
currency devaluation in Venezuela.
Total revenue is expected to grow 9% to 11% driven by growth
in the oil and gas, chemical and industrial markets, share gains
in the global automotive market, the impact of the Bornemann
Pumps acquisition and emerging market growth, partially offset by
weakness in the mining and defense end markets.
ITT currently has a Zacks Rank #2 (Buy). Here are some other
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