A key player in transportation and industrial markets, ITT CorporationITT , recently acquired the leading aerospace environmental control systems manufacturer, Hartzell Aerospace. The latter holds a solid reputation as the manufacturer of supreme-quality engineered and customized solutions for high-growth, next-generation aircraft platforms.
Inside the Headlines
The latest acquisition presents a plethora of opportunities for ITT, considering Hartzell Aerospace's successful track record of providing high-quality and innovative technologies. ITT management expects the acquired firm's profound expertise to aptly complement its thriving aerospace presence, which already occupies a dominating position in flow control and energy absorption components market of the aerospace industry.
According to ITT, the acquisition will also strengthen its portfolio of environmental control system solutions that is vital in ensuring customer comfort and safety. Management believes that both companies share a common philosophy of fostering innovation, and improving quality and performance to maximize customer satisfaction for driving profitability.
In Conclusion
In the fourth quarter of 2014, ITT's transportation and industrial market grew 5%, mainly driven by growth in aerospace, automotive and rail businesses. Specifically, the company's control technologies witnessed a surge in orders due to increased demand for aerospace and defense components.
Going forward, the company expects 12% revenue growth on the back of strategic platform-wins and share gain in commercial aerospace components.
Zacks Rank
ITT currently has a Zacks Rank #3 (Hold). Some better-ranked players in this space are Compass Diversified Holdings CODI , Icahn Enterprises, L.P. IEP and Dycom Industries Inc. DY . While Compass Diversified Holdings and Icahn Enterprises hold a Zacks Rank #2 (Buy) each, Dycom Industries sports a Zacks Rank #1 (Strong Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
