ITT Corporation (NYSE: ITT) today reported its 2012 full-year and fourth-quarter financial performance, including solid gains in revenue and adjusted earnings per share from continuing operations.
The company had 2012 annual revenue of $2.2 billion, reflecting 7 percent overall growth and 8 percent organic growth (defined as total revenue excluding foreign exchange, acquisition and divestiture impacts) compared with the prior year. Revenue results included 13 percent growth in North America and 12 percent growth in emerging markets. In 2012, solid gains and strength in core markets including oil and gas, chemical, mining and automotive offset weakness in the connectors market.
On a GAAP basis, 2012 earnings from continuing operations totaled $1.16 per share, compared with a loss of $6.22 per share in the prior year that was driven by impacts associated with the spin-offs of ITT’s former defense and water businesses. Adjusted earnings from continuing operations, which excludes special items, increased to $1.68 per share. Before the impact of the Bornemann acquisition, adjusted earnings would have been $1.70 per share, reflecting the company’s strong operational performance, which offset incremental post-spin recurring costs and unfavorable foreign exchange. Special items primarily included costs related to the company’s separation plan, restructuring initiatives and Bornemann Pumps items, as well as asbestos-related costs and tax items.
In the fourth quarter, revenue was up 9 percent to $554 million with organic revenue up 7 percent compared to the prior year. GAAP earnings from continuing operations totaled $0.24 per share. Adjusted earnings for the quarter were up to $0.37 per share, reflecting impacts from strategic portfolio actions and a higher-than-anticipated 35 percent effective tax rate. Before the impact of Bornemann, adjusted earnings would have been $0.39 per share.
“Over the past year as a truly global diversified industrial company, ITT delivered on our commitments and leveraged our sharper focus to propel the swift and consistent execution of our strategies to drive profitable growth and value creation. Our outstanding team achieved a number of successes including delivering double-digit growth in North America and emerging markets, completing the acquisition of Bornemann Pumps and continuing to strengthen our relationships with customers to grow our market share in several key end markets,” said Denise Ramos, chief executive officer and president.