ITT Swings to 4Q Loss on Spin-Off Charges

By IndustrialsFOXBusiness

ITT (NYSE:ITT) lost money in the fourth quarter on costs related to its split into three separate companies, however sales grew sharply on growth in emerging markets.

The White Plains, N.Y.-based diversified engineer reported a net loss of $530 million, or $5.68 a share, compared with a year-earlier profit of $274 million, or $2.98 a share. The losses were related to the spin-offs of defense and water businesses in October.

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Excluding one-time items, the company, which focus on providing parts and services to the industrial, aerospace, transportation and oil and gas markets, earned 36 cents, matching the Street’s view.

Revenue for the three-month period was $518 million, up from $470 million a year ago, beating the Street’s view of $511.3 million. Those gains were led climbing demand in emerging markets as ITT continued to expand its presence in China, Brazil and Australia.

ITT chief executive Denise Ramos says the company is “now well-positioned for profitable growth.” The manufacturer sees 2012 earnings in the range of $1.62 to $1.72 a share. Analysts are looking for a profit of $1.71.

“We are delivering strong operating performance and are already making progress against our key growth drivers,” Ramos said.

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