- Email: [email protected]
ITT Industries Inc, USA
Pump Industry Analyst
May 2005
ITT Industries Inc, USA
COMPANY PROFILE
Profile ITT Industries is a global multi-industry company engaged in the design and manufacture of a wide range of engineered products and the provision of related services. Its four principal business segments are Fluid Technology, Defense Electronics & Services, Motion & Flow Control, and Electronic Components. Fluid Technology is a leading global provider of fluid systems and solutions for the water, wastewater treatment, building trades, industrial and process and biopharm markets. Businesses include A-C, Aquious, Bell & Gossett, Engineered Process Solutions Group, Flowtronex, Flygt, Goulds Pumps, Hoffman, Lowara, Marlow, McDonnell & Miller, Richter, Sanitaire, Standard, Vogel and Wedeco. Motion & Flow Control includes Jabsco/Rule. Analysis ITT Industries’ annual revenues increased 21% to US$6.76 billion in 2004 driven by increased sales in all four business segments, the completion of several strategic acquisitions, and the positive impact of foreign currency translations. Segment operating income rose 18% to US$717.3 million on higher volume and improved efficiencies in all segments. Fluid Technology and Defense continued to be the revenue and profit pacesetters. ITT has now posted more than 10 consecutive quarters of growth and five consecutive quarters of doubledigit organic growth, while more than 21% of its sales in 2004 came from new products. In its Fluid Technology segment, overall annual revenues grew 15.3% in 2004 to reach US$2.6 billion, with water/ wastewater income up 22.6%.
COMMENT ITT Industries is continuing to develop its Fluid Technology business segment and has placed a particular emphasis on its water and wastewater businesses. Having acquired numerous companies over the past few years, ITT is now looking to consolidate its position through the development of distinct brand identities for its core technologies. It is also looking to position itself as a solution provider rather than solely a product producer. This comes as the water treatment market continues to heat up, with other multi-national players like Siemens and GE also keen to increase their market share. ■
Key Figures (US$ million) ITT Industries Inc
Year ended 31.12 2004
2003
2002
2001
2000
Sales and Revenues Of Which: Fluid Technology
6764.1
5610.8
4962.7
4639.4
4788.9
2594.1
2249.9
1956.3
1829.7
1834.2
Costs of Sales and Revenues
4466.4
3672.0
3195.8
3044.5
3195.3
R&D Expenses Total Costs and Expenses Operating Income/(Loss) Of Which: Fluid Technology
634.0
558.3
518.0
424.7
391.2
6129.2
5077.6
4423.0
4238.2
4300.1
634.9
533.2
539.7
394.7
489.9
285.9
271.4
251.5
220.6
224.0
Income from Continuing Operations
437.5
394.0
381.3
215.2
262.6
Net Income
432.3
403.9
379.9
276.7
264.5
Contact Details Chairman, President and CEO: Address:
Steven Loranger ITT Industries Inc 4 West Red Oak Lane White Plains NY 10604 USA
Tel: +1 914 641 2000 Fax: +1 914 696 2950 Web: www.itt.com
Recent Events • On 20 December 2004, ITT’s Motion and Flow Control segment acquired Cleghorn Waring & Co (Pumps) Ltd, a supplier of marine and industrial pumps in the UK. • Steven Loranger succeeded Lou Giuliano as president and CEO in June 2004. • Cross-selling activities accelerated across the Fluid Technology business during 2004, including a US$7 million sale for Goulds Pumps and Flygt pumps, which was one of ITT’s largest single pump orders to date. • During 2004 the Fluid Technology division completed the acquisition of Wedeco and Hengtong, as well as forming the Advanced Water Treatment division that brought together seven businesses focussed on the water treatment and reuse markets.
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May 2005
ITT Industries Inc, USA
COMPANY PROFILE
Profile ITT Industries is a global multi-industry company engaged in the design and manufacture of a wide range of engineered products and the provision of related services. Its four principal business segments are Fluid Technology, Defense Electronics & Services, Motion & Flow Control, and Electronic Components. Fluid Technology is a leading global provider of fluid systems and solutions for the water, wastewater treatment, building trades, industrial and process and biopharm markets. Businesses include A-C, Aquious, Bell & Gossett, Engineered Process Solutions Group, Flowtronex, Flygt, Goulds Pumps, Hoffman, Lowara, Marlow, McDonnell & Miller, Richter, Sanitaire, Standard, Vogel and Wedeco. Motion & Flow Control includes Jabsco/Rule. Analysis ITT Industries’ annual revenues increased 21% to US$6.76 billion in 2004 driven by increased sales in all four business segments, the completion of several strategic acquisitions, and the positive impact of foreign currency translations. Segment operating income rose 18% to US$717.3 million on higher volume and improved efficiencies in all segments. Fluid Technology and Defense continued to be the revenue and profit pacesetters. ITT has now posted more than 10 consecutive quarters of growth and five consecutive quarters of doubledigit organic growth, while more than 21% of its sales in 2004 came from new products. In its Fluid Technology segment, overall annual revenues grew 15.3% in 2004 to reach US$2.6 billion, with water/ wastewater income up 22.6%.
COMMENT ITT Industries is continuing to develop its Fluid Technology business segment and has placed a particular emphasis on its water and wastewater businesses. Having acquired numerous companies over the past few years, ITT is now looking to consolidate its position through the development of distinct brand identities for its core technologies. It is also looking to position itself as a solution provider rather than solely a product producer. This comes as the water treatment market continues to heat up, with other multi-national players like Siemens and GE also keen to increase their market share. ■
Key Figures (US$ million) ITT Industries Inc
Year ended 31.12 2004
2003
2002
2001
2000
Sales and Revenues Of Which: Fluid Technology
6764.1
5610.8
4962.7
4639.4
4788.9
2594.1
2249.9
1956.3
1829.7
1834.2
Costs of Sales and Revenues
4466.4
3672.0
3195.8
3044.5
3195.3
R&D Expenses Total Costs and Expenses Operating Income/(Loss) Of Which: Fluid Technology
634.0
558.3
518.0
424.7
391.2
6129.2
5077.6
4423.0
4238.2
4300.1
634.9
533.2
539.7
394.7
489.9
285.9
271.4
251.5
220.6
224.0
Income from Continuing Operations
437.5
394.0
381.3
215.2
262.6
Net Income
432.3
403.9
379.9
276.7
264.5
Contact Details Chairman, President and CEO: Address:
Steven Loranger ITT Industries Inc 4 West Red Oak Lane White Plains NY 10604 USA
Tel: +1 914 641 2000 Fax: +1 914 696 2950 Web: www.itt.com
Recent Events • On 20 December 2004, ITT’s Motion and Flow Control segment acquired Cleghorn Waring & Co (Pumps) Ltd, a supplier of marine and industrial pumps in the UK. • Steven Loranger succeeded Lou Giuliano as president and CEO in June 2004. • Cross-selling activities accelerated across the Fluid Technology business during 2004, including a US$7 million sale for Goulds Pumps and Flygt pumps, which was one of ITT’s largest single pump orders to date. • During 2004 the Fluid Technology division completed the acquisition of Wedeco and Hengtong, as well as forming the Advanced Water Treatment division that brought together seven businesses focussed on the water treatment and reuse markets.
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