ITT
$39.38
ITT Industries
$.64
1.65%
Earnings Details
1st Quarter March 2017
Monday, May 08, 2017 6:45:00 AM
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Summary

ITT Industries Beats

ITT Industries (ITT) reported 1st Quarter March 2017 earnings of $0.64 per share on revenue of $625.8 million. The consensus earnings estimate was $0.60 per share on revenue of $603.4 million. The Earnings Whisper number was $0.63 per share. Revenue grew 2.7% on a year-over-year basis.

The company said it now expects 2017 earnings of $2.28 to $2.48 per share and continues to expect revenue of $2.36 billion to $2.46 billion. The company's previous guidance was earnings of $2.18 to $2.48 per share and the current consensus earnings estimate is $2.38 per share on revenue of $2.45 billion for the year ending December 31, 2017.

ITT Corp is a diversified manufacturer of engineered critical components and customized technology solutions for the energy, transportation and industrial markets.

Results
Reported Earnings
$0.64
Earnings Whisper
$0.63
Consensus Estimate
$0.60
Reported Revenue
$625.8 Mil
Revenue Estimate
$603.4 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

ITT Reports Solid 2017 First-Quarter Results

GAAP Results:

--Revenue up 3% to $626 million

--Segment operating income up 9%

--EPS up to $0.52

--Adjusted Results:

--Organic revenue up 2%; Organic orders up 7%

--Segment operating income up 3%, including unfavorable FX of $4 million

--EPS up 8% to $0.64

ITT Inc. (ITT) today reported solid 2017 first-quarter financial results that reflect the company’s ability to leverage the benefits from proactive restructuring and continuous operational improvement while advancing share gains and market growth in key global end markets and deploying capital to enhance its global platforms.

On a GAAP basis, the company delivered revenue of $626 million, a 3 percent increase, and an organic revenue (defined as total revenue excluding foreign exchange, acquisition and divestiture impacts) increase of 2 percent, as solid growth in transportation - driven by automotive, aerospace and defense - was partially offset by project declines in oil and gas, reflecting weak backlog entering the year. Organic orders grew 7% in the first quarter primarily due to a large oil and gas project win and significant automotive share gains in Europe and China.

GAAP segment operating income increased 9 percent and adjusted segment operating income increased 3 percent, reflecting incremental restructuring benefits, higher volumes and improved productivity. These gains were partially offset by $4 million of unfavorable foreign exchange, higher commodity costs and strategic investments to support continued long-term automotive platform wins. Excluding foreign exchange, adjusted segment operating income increased 8 percent. GAAP segment operating income also benefited from lower restructuring and acquisition-related costs.

GAAP EPS increased $0.10 to $0.52 and adjusted EPS, which excludes special items, increased $0.05 to $0.64, as segment operating income growth, favorable corporate costs and improved efficiency were partially offset by $1 million of unfavorable impacts from foreign exchange. Excluding foreign exchange, adjusted EPS grew 10 percent, despite a 150 basis point increase in the tax rate.

For a reconciliation of GAAP to non-GAAP results, please refer to www.itt.com/investors or click here.

"ITT delivered a solid first quarter as we continued our intense focus on optimizing execution across the enterprise while advancing our essential long-term growth plans," said CEO and President Denise Ramos. "We demonstrated our executional capability in accomplishments ranging from successfully leveraging the benefits of our structural reset at Industrial Process, to driving solid operational improvements at our connector facilities, to improving productivity and efficiency across the enterprise.

"We also simplified our structural framework by strategically combining two of our segments to create Connect and Control Technologies, which will give us new opportunities to optimize operations and leverage shared resources and talent to enhance our long-term growth in the global aerospace and industrial markets. All of this work is being enhanced by our new Chief Operating Officer structure, which is driving more robust processes and performance across the enterprise.

"In addition, we continued to expand in key end markets such as automotive and aerospace, while leveraging recent acquisitions to strengthen our global platforms. We drove significant order growth in automotive in Europe and China, in global oil and gas pumps and connectors, and in heavy vehicle connectors in Asia. In addition, we are on track with the integration of our recent Axtone Railway Components acquisition and are continuing to strategically deploy our capital to both position ITT for long-term success and to create value for shareowners."

New Connect and Control Technologies Segment

The Connect and Control Technologies (CCT) segment was formed by combining the company’s Interconnect Solutions and Control Technologies businesses to align operations, leverage shared infrastructure and drive long-term growth in common target markets. CCT designs and manufactures harsh-environment connectors and critical energy absorption and flow control components primarily for the aerospace and defense, and industrial markets. Reconciliations of historical CCT quarterly data are available at www.itt.com/investors or click here.

2017 First-Quarter Business Segment Results

All quarterly results are compared with the respective prior-year periods.

Industrial Process designs and manufactures industrial pumps and valves for the chemical, industrial, oil and gas, and mining markets.

Total revenue and organic revenue decreased 11 percent to $186 million, reflecting growth in short-cycle baseline pumps and service that was more than offset by large project declines, primarily in oil and gas due to weak backlog entering the year, as well as slower aftermarket parts activity.

GAAP operating income decreased 19 percent to $7 million, and adjusted segment operating income decreased 18 percent to $10 million. Both measures primarily reflect lower project volumes across key markets, increased negative impacts from pump projects with a high degree of engineering and manufacturing complexity, and $1 million of unfavorable foreign exchange, which were partially offset by incremental restructuring benefits and improved operational execution.

Motion Technologies designs and manufactures braking technologies, shock absorbers and specialized sealing solutions for the automotive and rail markets.

Total revenue increased 12 percent to $287 million, and organic revenue increased 10 percent, reflecting significant share gains and market growth in automotive brake pads in Europe and China, improved aftermarket, and strength in sealing solutions at Wolverine. Total revenue includes $8 million of unfavorable foreign exchange and incremental revenue of $14 million from the acquisition of Axtone Railway Components.

GAAP operating income increased 8 percent to $55 million, and adjusted segment operating income increased 5 percent to $56 million. Both increases reflect strong volume growth, partially offset by commodity costs, pricing pressures, $2 million of unfavorable foreign exchange and $3 million of strategic investments to support continued long-term platform wins in North America.

Connect and Control Technologies designs and manufactures harsh-environment connectors and critical energy absorption and flow control components primarily for the aerospace and defense and industrial markets.

Total revenue increased 6 percent to $153 million, and organic revenue increased 7 percent. Both increases reflect stronger general industrial, defense, and oil and gas connector activity.

GAAP operating income increased 32 percent to $16 million and adjusted segment operating income increased 14 percent to $18 million. Both measures reflect higher volumes and improved operational efficiencies in connector facilities and incremental restructuring benefits, partially offset by incremental costs related to environmental control systems.

Guidance

The company is maintaining its previously announced 2017 full-year revenue guidance in the range of down 2 percent to up 2 percent vs. the prior year, and it is raising the midpoint of its previous GAAP and adjusted EPS guidance by $0.05. The updated EPS guidance reflects an increase at the low end and a tightening of the previous ranges due to solid results in the first quarter and an improved operational outlook, partially offset by additional foreign exchange and commodity headwinds.

Investor Call Today

ITT’s senior management will host a conference call for investors today at 9 a.m. ET to review performance and answer questions. The briefing can be monitored live via webcast at the following address on the company’s Web site: www.itt.com/investors and will be available on the website from two hours after the webcast until Monday, May 22, 2017, at midnight.

All references to EPS are defined as diluted earnings per share from continuing operations.

About ITT

ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial, and oil and gas markets. Building on its heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin our modern way of life. ITT is headquartered in White Plains, N.Y., with employees in more than 35 countries and sales in a total of approximately 125 countries. The company generated 2016 revenues of $2.4 billion. For more information, visit www.itt.com.

Safe Harbor Statement

This release contains "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995 (the "Act"). No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. All forward-looking statements included in this release are based on information available to us on the date hereof, and we undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. The forward-looking statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about the business and future financial results of the industry in which we operate, and other legal, regulatory and economic developments. These forward-looking statements include, but are not limited to, future strategic plans and other statements that describe the company’s business strategy, outlook, objectives, plans, intentions or goals, and any discussion of future events and future operating or financial performance.

We use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "future," "may," "will," "could," "should," "potential," "continue," "guidance" and other similar expressions to identify such forward-looking statements. Forward-looking statements are uncertain and to some extent unpredictable, and involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed or implied in, or reasonably inferred from, such forward-looking statements.

Forward-looking statements in this release should be evaluated together with the risks and uncertainties that affect our business, particularly those mentioned in the Risk Factors section of the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents filed from time to time with the Securities and Exchange Commission.

ITT INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED INCOME STATEMENTS
(In millions, except per share)
(Unaudited)
Three Months
For the Periods Ended March 31
2017
2016
Revenue
$ 625.8
$
609.1
Costs of revenue
423.5
413.8
Gross Profit
202.3
195.3
General and administrative expenses
66.2
69.0
Sales and marketing expenses
43.1
43.3
Research and development expenses
22.5
19.2
Asbestos-related costs, net
14.9
12.8
Operating Income
55.6
51.0
Interest and non-operating expenses, net
0.8
1.7
Income from continuing operations before income tax expense
54.8
49.3
Income tax expense
9.1
11.7
Income from continuing operations
45.7
37.6
Loss from discontinued operations, net of tax
(0.1 )
(0.3 )
Net income
45.6
37.3
Less: Loss attributable to noncontrolling interests
(0.4 )
(0.1 )
Net Income attributable to ITT Inc.
$
46.0
$
37.4
Amounts attributable to ITT Inc.:
Income from continuing operations, net of tax
$
46.1
$
37.7
Loss from discontinued operations, net of tax
(0.1 )
(0.3 )
Net income attributable to ITT Inc.
$
46.0
$
37.4
Earnings per share attributable to ITT Inc.:
Basic earnings per share:
Continuing operations
$
0.52
$
0.42
Discontinued operations
-
-
Net income
$
0.52
$
0.42
Diluted earnings per share:
Continuing operations
$
0.52
$
0.42
Discontinued operations
-
(0.01 )
Net income
$
0.52
$
0.41
Weighted average common shares - basic
88.5
89.6
Weighted average common shares - diluted
89.2
90.5
ITT INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)
March 31,
December 31,
2017
2016
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents
$
348.5
$
460.7
Receivables, net
576.9
523.9
Inventories, net
311.5
295.2
Other current assets
142.0
122.0
Total current assets
1,378.9
1,401.8
Plant, property and equipment, net
481.5
464.5
Goodwill
865.7
774.7
Other intangible assets, net
156.7
160.3
Asbestos-related assets
301.3
314.6
Deferred income taxes
300.2
297.4
Other non-current assets
186.1
188.4
Total non-current assets
2,291.5
2,199.9
Total assets
$ 3,670.4
$
3,601.7
Liabilities and Shareholders’ Equity
Current Liabilities:
Short-term loans and current maturities of long-term debt
$
213.1
$
214.3
Accounts payable
313.6
301.7
Accrued liabilities
359.1
350.2
Total current liabilities
885.8
866.2
Asbestos-related liabilities
866.6
877.5
Postretirement benefits
251.9
248.6
Other non-current liabilities
174.1
181.0
Total non-current liabilities
1,292.6
1,307.1
Total liabilities
$ 2,178.4
$
2,173.3
Total ITT Inc. shareholders’ equity
1,490.4
1,426.4
Noncontrolling interests
1.6
2.0
Total shareholders’ equity
1,492.0
1,428.4
Total liabilities and shareholders’ equity
$ 3,670.4
$
3,601.7
ITT INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
For the Three Months Ended March 31
2017
2016
Operating Activities
Net income
$
45.6
$
37.3
Less: Loss from discontinued operations
(0.1 )
(0.3 )
Less: Loss attributable to noncontrolling interests
(0.4 )
(0.1 )
Income from continuing operations attributable to ITT Inc.
46.1
37.7
Adjustments to income from continuing operations:
Depreciation and amortization
24.8
25.3
Stock-based compensation
3.7
2.9
Asbestos-related costs, net
14.9
12.8
Asbestos-related payments, net
(13.0 )
(4.3 )
Changes in assets and liabilities:
Change in receivables
(34.7 )
(21.0 )
Change in inventories
(1.6 )
(4.0 )
Change in accounts payable
2.5
(14.8 )
Change in accrued expenses
(3.5 )
(28.8 )
Change in accrued and deferred income taxes
(4.6 )
3.4
Other, net
(7.5 )
(3.5 )
Net Cash - Operating activities
27.1
5.7
Investing Activities
Capital expenditures
(36.7 )
(21.0 )
Acquisitions, net of cash acquired
(113.7 )
(0.2 )
Purchases of investments
-
(40.0 )
Maturities of investments
-
36.3
Other, net
0.3
0.1
Net Cash - Investing activities
(150.1 )
(24.8 )
Financing Activities
Commercial paper, net borrowings
(1.5 )
28.5
Short-term revolving loans, borrowings
-
27.7
Short-term revolving loans, repayments
-
(27.7 )
Long-term debt, issued
2.1
-
Long-term debt, repayments
(0.3 )
(0.3 )
Repurchase of common stock
(2.3 )
(6.9 )
Proceeds from issuance of common stock
5.9
6.1
Dividends paid
(0.2 )
(11.4 )
Excess tax benefit from equity compensation activity
-
3.0
Other, net
-
(2.1 )
Net Cash - Financing activities
3.7
16.9
Exchange rate effects on cash and cash equivalents
7.9
9.9
Net Cash - Operating activities of discontinued operations
(0.8 )
7.5
Net change in cash and cash equivalents
(112.2 )
15.2
Cash and cash equivalents - beginning of year
460.7
415.7
Cash and cash equivalents - end of period
$
348.5
$ 430.9
Key Performance Indicators and Non-GAAP Measures
Management reviews a variety of key performance indicators including
revenue, segment operating income and margins, earnings per share,
order growth, and backlog, some of which are non-GAAP. In addition,
we consider certain measures to be useful to management and
investors when evaluating our operating performance for the periods
presented. These measures provide a tool for evaluating our ongoing
operations and management of assets from period to period. This
information can assist investors in assessing our financial
performance and measures our ability to generate capital for
deployment among competing strategic alternatives and initiatives,
including, but not limited to, acquisitions, dividends and share
repurchases.
These metrics, however, are not measures of financial performance
under accounting principles generally accepted in the United States
of America (GAAP) and should not be considered a substitute for
measures determined in accordance with GAAP. We consider the
following non-GAAP measures, which may not be comparable to
similarly titled measures reported by other companies, to be key
performance indicators for purposes of our reconciliation tables.
Organic Revenues and Organic Orders are defined as
revenues and orders, excluding the impacts of foreign currency
fluctuations, acquisitions and divestitures. Divestitures include
sales of portions of our business that did not meet the criteria for
presentation as a discontinued operation. The period-over-period
change resulting from foreign currency fluctuations is estimated
using a fixed exchange rate for both the current and prior periods.
Management believes that reporting organic revenue and organic
orders provides useful information to investors by helping identify
underlying trends in our business and facilitating easier
comparisons of our revenue performance with prior and future periods
and to our peers.
Adjusted Operating Income, Adjusted Segment Operating Income and
Adjusted Segment Operating Margin are defined as total
operating income and segment operating income, adjusted to exclude
special items that include, but are not limited to, asbestos-related
costs, restructuring costs, realignment costs, certain asset
impairment charges, certain acquisitions-related expenses, and other
unusual or infrequent operating items. Special items represent
significant charges or credits that impact the current results,
which management views as unrelated to the Company’s ongoing
operations and performance. Adjusted segment operating margin is
defined as adjusted segment operating income divided by total
revenue. We believe that adjusted segment operating income is useful
to investors and other users of our financial statements in
evaluating ongoing operating profitability, as well as in evaluating
operating performance in relation to our competitors.
Adjusted Income from Continuing Operations, Adjusted EPS and
Adjusted EPS Guidance are defined as income from continuing
operations attributable to ITT Inc. and income from continuing
operations attributable to ITT Inc. per diluted share, adjusted to
exclude special items that include, but are not limited to,
asbestos-related costs, restructuring costs, realignment costs,
certain asset impairment charges, certain acquisition-related
expenses, income tax settlements or adjustments, and other unusual
and infrequent non-operating items. Special items represent
significant charges or credits, on an after-tax basis, that impact
current results, which management views as unrelated to the
Company’s ongoing operations and performance. We believe that
adjusted income from continuing operations is useful to investors
and other users of our financial statements in evaluating ongoing
operating profitability, as well as in evaluating operating
performance in relation to our competitors.
Adjusted Free Cash Flow is defined as net cash provided by
operating activities less capital expenditures, adjusted for cash
payments for restructuring costs, realignment actions, net asbestos
cash flows and other significant items that impact current results
which management views as unrelated to the Company’s ongoing
operations and performance. Due to other financial obligations and
commitments, including asbestos, the entire free cash flow may not
be available for discretionary purposes. We believe that adjusted
free cash flow provides useful information to investors as it
provides insight into the primary cash flow metric used by
management to monitor and evaluate cash flows generated by our
operations.
ITT Inc. Non-GAAP Reconciliation
Reported vs. Organic Revenue / Order Growth
First Quarter 2017 & 2016
(In Millions)
(As Reported - GAAP)
(As Adjusted - Organic)
(A)
(B)
(C)
(D)
(E) = B-C-D
(F) = E / A
Change
% Change
Acquisition / Divestitures
FX Impact
Change
% Change
3M 2017
3M 2016
2017 vs. 2016
2017 vs. 2016
3M 2017
3M 2017
Adj. 2017 vs. 2016
Adj. 2017 vs. 2016
Revenues
ITT Inc. - Consolidated
625.8
609.1
16.7
2.7 %
14.0
(9.1 )
11.8
1.9 %
Industrial Process
186.1
208.8
(22.7 )
(10.9 %)
-
-
(22.7 )
(10.9 %)
Motion Technologies
287.3
257.0
30.3
11.8 %
14.0
(8.4 )
24.7
9.6 %
Connect & Control Technologies
153.3
144.3
9.0
6.2 %
-
(0.8 )
9.8
6.8 %
Orders
Total Segment Orders
670.6
623.5
47.1
7.6 %
12.3
(8.9 )
43.7
7.0 %
Industrial Process
221.8
188.8
33.0
17.5 %
-
0.1
32.9
17.4 %
Motion Technologies
287.2
265.4
21.8
8.2 %
12.3
(8.2 )
17.7
6.7 %
Connect & Control Technologies
162.4
170.5
(8.1 )
(4.8 %)
-
(0.8 )
(7.3 )
(4.3 %)
Note: Excludes intercompany eliminations
Immaterial differences due to rounding
ITT Inc. Non-GAAP Reconciliation
Reported vs Adjusted Segment Operating Income & Operating Margin
First Quarter 2017 & 2016
(In Millions)
3M 2017
3M 2017
3M 2017
3M 2016
3M 2016
3M 2016
% Change
% Change
As Reported
Special Items
As Adjusted
As Reported
Special Items
As Adjusted
As Reported
As Adjusted
2017 vs. 2016
2017 vs. 2016
Revenue:
Industrial Process
186.1
186.1
208.8
208.8
(10.9%)
(10.9%)
Motion Technologies
287.3
287.3
257.0
257.0
11.8%
11.8%
Connect & Control Technologies
153.3
153.3
144.3
144.3
6.2%
6.2%
Intersegment eliminations
(0.9)
(0.9)
(1.0)
(1.0)
Total Revenue
625.8
625.8
609.1
609.1
2.7%
2.7%
Operating Margin:
Industrial Process
3.9%
150 BP
5.4%
4.3%
150 BP
5.8%
(40) BP
(40) BP
Motion Technologies
19.1%
30 BP
19.4%
19.7%
100 BP
20.7%
(60) BP
(130) BP
Connect & Control Technologies
10.6%
110 BP
11.7%
8.6%
230 BP
10.9%
200 BP
80 BP
Total Operating Segments
12.5%
90 BP
13.4%
11.8%
150 BP
13.3%
70 BP
10 BP
Income (loss):
Industrial Process
7.3
2.7
10.0
9.0
3.2
12.2
(18.9%)
(18.0%)
Motion Technologies
54.9
0.9
55.8
50.7
2.4
53.1
8.3%
5.1%
Connect & Control Technologies
16.3
1.6
17.9
12.4
3.3
15.7
31.5%
14.0%
Total Segment Operating Income
78.5
5.2
83.7
72.1
8.9
81.0
8.9%
3.3%
Note: Immaterial differences due to rounding.
Special items include, but are not limited to, restructuring and
realignment costs, certain asset impairment charges,
acquisition-related expenses,
and other unusual or infrequent operating items.
ITT Inc. Non-GAAP Reconciliation
Reported vs. Adjusted Income from Continuing Operations &
Adjusted EPS
First Quarter 2017 & 2016
(In Millions, except per share amounts)
Percent Change
Q1 2017
Non-GAAP
Q1 2017
Q1 2016
Non-GAAP
Q1 2016
2017 vs. 2016
2017 vs. 2016
As Reported
Adjustments
As Adjusted
As Reported
Adjustments
As Adjusted
As Adjusted
As Adjusted
Segment Operating Income
78.5
5.2
#A
83.7
72.1
8.9
#A
81.0
Corporate (Expense)
(22.9 )
17.6
#B
(5.3 )
(21.1 )
12.7
#B
(8.4 )
Operating Income
55.6
22.8
78.4
51.0
21.6
72.6
Interest Income (Expense)
(0.4 )
-
(0.4 )
(1.1 )
-
(1.1 )
Other Income (Expense)
(0.4 )
-
(0.4 )
(0.6 )
-
(0.6 )
Income from Continuing Operations before Tax
54.8
22.8
77.6
49.3
21.6
70.9
Income Tax (Expense)
(9.1 )
(11.5 )
#C
(20.6 )
(11.7 )
(6.0 )
#C
(17.7 )
Income from Continuing Operations
45.7
11.3
57.0
37.6
15.6
53.2
Less: Non Controlling Interest
(0.4 )
-
(0.4 )
(0.1 )
-
(0.1 )
Income from Continuing Operations - ITT Inc.
46.1
11.3
57.4
37.7
15.6
53.3
EPS from Continuing Operations
0.52
0.12
0.64
0.42
0.17
0.59
0.05
8.5 %
Note: Amounts may not calculate due to rounding.
#A - 2017 includes restructuring and realignment costs ($4.5M) and
acquisition related costs of ($0.7M).
#A - 2016 includes restructuring and realignment costs ($6.5M) and
acquisition related costs of ($2.4M).
#B - 2017 includes restructuring costs ($0.6M), certain costs
associated primarily with sale of excess property ($2.1M), asbestos
related expense ($14.9M).
#B - 2016 includes asbestos related expense and other costs ($12.7M).
#C - 2017 includes various tax-related special items including tax
benefit on excess stock based compensation of ($1.1M), tax benefit
for tax rate changes ($1.3M), and the tax impact of other operating
special items.
#C - 2016 includes various tax-related special items including tax
on deemed distribution of foreign earnings of ($1.0M), in addition
to the tax impact of other operating special items.
ITT Inc. Non-GAAP Reconciliation
Net Cash - Operating Activities vs. Adjusted Free Cash Flow
Conversion
First Quarter 2017 & 2016
(In Millions)
3M 2017
3M 2016
Net Cash - Operating Activities
27.1
5.7
Capital Expenditures
36.7
21.0
Free Cash Flow
(9.6 )
(15.3 )
Realignment Related Cash Payments, including Capex
4.5
-
Restructuring Cash Payments
5.4
6.5
Asbestos Cash Payments, net
13.0
4.3
Adjusted Free Cash Flow
13.3
(4.5 )
Income from Continuing Operations - ITT Inc.
46.1
37.7
Special Items
11.3
15.6
Income from Continuing Operations - ITT Inc., Excluding
Special Items
57.4
53.3
Adjusted Free Cash Flow Conversion
23.2 %
NA
ITT Inc. Non-GAAP Reconciliation
GAAP vs. Adjusted EPS Guidance
Full Year 2017
2017 Full-Year Guidance
Low
High
EPS from Continuing Operations - GAAP
$
1.52
$
1.78
Estimated Asbestos Related Costs, Net of Tax
0.42
0.42
$
1.94
$
2.20
Estimated Restructuring, Realignment and Other Costs, Net of Tax
0.28
0.24
Acquisition Related Costs, Net of Tax
0.10
0.08
Other Special Tax Items
(0.04 )
(0.04 )
EPS from Continuing Operations - Adjusted
$
2.28
$
2.48

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SOURCE: ITT Inc.

ITT
Investors:
Jason Moss, +1-914-641-2030
jason.moss@itt.com
or
Media:
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kathleen.bark@itt.com