WHITE PLAINS, N.Y. (AP) â¿¿ ITT's second-quarter net income tumbled 90 percent, mostly because of an accounting-related charge, and shares of the industrial parts supplier jumped 12 percent as it beat expectations for adjusted profits.
Revenue soared and operating margins grew across all segments of the company.
"We saw momentum across our businesses as our industrial process business had its third consecutive quarter of record shipments, and our motion technologies business grew 36 percent in emerging markets and gained European and North American market share," said CEO and President Denise Ramos.
ITT now expects 10 percent of all emerging market growth will be driven by oil and gas in the Middle East, and mining in Latin America, automotive gains in China.The company earned $16.8 million, or 18 cents per share, for the three months ended June 30. In the prior-year period it earned $169.7 million, or $1.82 per sha Stripping out the accounting item, restructuring costs and other items, earnings from continuing operations rose to 50 cents per share, from 46 cents per share last year. Analysts polled by FactSet expected 37 cents per share. Shares of ITT added $2.28 to hit $20.46 in midday trading. The stock has traded in a range of $16.67 to $43.20 over the past year. Revenue climbed to $567.5 million from $552.4 million, up 3 percent. The results were backed by a 16 percent increase in revenue from the industrial process division, which makes pumps and valves for the oil and gas, chemical, mining and industrial markets. Wall Street predicted $569.7 million in revenue. ITT Corp. said Friday that it still expects 2012 adjusted earnings of $1.62 to $1.72 per share. It anticipates business in emerging markets rising 10 percent on oil and gas in the Middle East, mining in Latin America, automotive gains in China and new products. Analysts forecast $1.63 per share.