WHITE PLAINS, N.Y. (AP) â¿¿ Industrial parts supplier ITT Corp. posted a sharply lower first-quarter profit on Friday, weighed down by costs and lower segment operating income in the aftermath of its split into three separate companies.
The results still beat Wall Street estimates.
The company completed its breakup last October. It spun off its defense and information solutions as well as its water technology and services businesses.
ITT reported net income of $3 million, or 3 cents a share, for the three months ended March 31. That compares with a profit of $121 million, or $1.31 a share, in the same quarter last year.Taking out the costs tied to its separation plan and other items, earnings were 39 cents a share. Revenue increased 9 percent to $577 million from $533 million a year earlier. Analysts, on average, expected adjusted earnings of 31 cents a share on revenue of $557 million, according to FactSet. Revenue rose by 22 percent in emerging markets and by 11 percent in North America. ITT also posted gains across several industries; including oil and gas, mining, chemical and general industrial. Looking ahead, the company stood by its 2012 adjusted earnings outlook of $1.62 to $1.72 a share. Revenue is expected to climb 5 to 7 percent, which implies about $2.22 billion to $2.27 billion. Analysts, on average, predict full-year earnings of $1.68 a share and $2.24 billion in revenue. ITT shares fell 4 cents to close at $21.97.