ITT Corporation
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ITT Corporation Financial Snapshot
Operating Performance
Fast Facts
1133 Westchester Avenue, WHITE PLAINS, The company reported revenue of US$2,119 million
Headquarters Address
10604 during the fiscal year 2011 (2011). The company's
revenue declined at a compounded rate of 30.35%
Telephone + 1 914 6412000
during 2007–2011, with an annual growth of 11.06%
over 2010. In 2011, the company recorded an
Fax + 1 914 6962950 operating margin of -11.66%, as against -9.64% in
2010.
Website www.itt.com
Ticker Symbol, Stock Exchange ITT, New York Stock Exchange Revenue and Margins
Number of Employees 8,500
Fiscal Year End December
Revenue (in US$ million) 2,119
SWOT Analysis
Strengths Weaknesses
Diversified business operations Lawsuits
Increase in top line performance
Industry recognition
Opportunities Threats
Focused expansion in growth markets Environmental laws and regulations
New product launches Foreign exchange risk
Strategic growth initiatives Raw material price fluctuations
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ITT Corporation - SWOT Profile Page 1
ITT Corporation
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................7
2 Analysis of Key Performance Indicators ............................................................................................... 9
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................9
2.2 Key Financial Performance Indicators .................................................................................................................12
2.2.1 Revenue and Operating Profit .........................................................................................................................12
2.2.2 Asset and Liabilities .........................................................................................................................................13
2.2.3 Solvency ..........................................................................................................................................................14
2.3 Competitive Benchmarking ..................................................................................................................................15
2.3.1 Market Capitalization .......................................................................................................................................16
2.3.2 Efficiency ..........................................................................................................................................................17
2.3.3 Turnover – Inventory and Asset .......................................................................................................................18
2.3.4 Liquidity ............................................................................................................................................................19
3 SWOT Analysis ...................................................................................................................................... 20
3.1 SWOT Analysis - Overview ..................................................................................................................................20
3.2 Strengths ..............................................................................................................................................................20
3.3 Weaknesses .........................................................................................................................................................20
3.4 Opportunities ........................................................................................................................................................21
3.5 Threats .................................................................................................................................................................21
4 History .................................................................................................................................................... 23
5 Key Employees ...................................................................................................................................... 27
6 Key Employee Biographies................................................................................................................... 28
7 Locations and Subsidiaries .................................................................................................................. 29
7.1 Head Office ..........................................................................................................................................................29
7.2 Other Locations and Subsidiaries ........................................................................................................................29
8 Appendix ................................................................................................................................................ 31
8.1 Methodology .........................................................................................................................................................31
8.2 Ratio Definitions ...................................................................................................................................................31
8.3 Disclaimer.............................................................................................................................................................35
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ITT Corporation - SWOT Profile Page 2
ITT Corporation
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List of Tables
Table 1: Major Products and Services....................................................................................................................................7
Table 2: Key Ratios - Annual ..................................................................................................................................................9
Table 3: Key Ratios - Interim ................................................................................................................................................11
Table 4: Key Capital Market Indicators ................................................................................................................................11
Table 5: History.....................................................................................................................................................................23
Table 6: Key Employees .......................................................................................................................................................27
Table 7: Key Employee Biographies ....................................................................................................................................28
Table 8: Subsidiaries ............................................................................................................................................................29
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ITT Corporation - SWOT Profile Page 3
ITT Corporation
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List of Figures
Figure 1: Revenue and Operating Profit ...............................................................................................................................12
Figure 2: Financial Position ..................................................................................................................................................13
Figure 3: Solvency ................................................................................................................................................................14
Figure 4: Market Capitalization .............................................................................................................................................16
Figure 5: Efficiency ...............................................................................................................................................................17
Figure 6: Turnover – Inventory and Asset ............................................................................................................................18
Figure 7: Liquidity .................................................................................................................................................................19
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ITT Corporation - SWOT Profile Page 4
ITT Corporation
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1 Business Analysis
1.1 Company Overview
ITT Corporation (ITT) is a manufacturer of highly engineered critical components and customized technology solutions.
The company’s product portfolio includes engineered fluid process equipment, brake pads, shock absorbers, damping
technologies, actuation products, valves, switches, vibration isolation products, custom-energy absorption products and
regulators along with a broad variety of specialized connector products. ITT serves the industrial end-markets such as
electronics, aerospace, defense, transportation, oil and gas, mining, industrial, chemical and power generation. The
company operates in 31 countries and has sales presence in 125 countries. The company is headquartered in White
Plains, New York, the US.
1.2 Business Description
ITT Corporation (ITT) is a diversified high-technology engineering company. Along with its subsidiaries, the company
designs, develops and manufactures a diverse range of engineering products and provides related services.
The company operates through four reportable segments: Industrial Process, Motion Technologies, Interconnect
Solutions and Control Technologies.
The Industrial Process segment manufactures engineered fluid process equipment. The segment’s operations include
four product categories: Goulds Pumps, Inc., ITT Engineered Valves, ITT PRO Services and ITT C’treat. The Industrial
Process segment is headquartered in Seneca Falls, New York, the US. During FY2011, the segment generated 36.20%
of the company’s total revenues.
Goulds Pumps, Inc. is involved in providing various types of pumps such as centrifugal pumps including ANSI and ISO
chemical pumps, slurry and process pumps for the mining industry, API (American Petroleum Institute) pumps for
petrochemical and oil and gas industry, and paper stock pumps for the pulp and paper industry. In addition, it provides
axial flow, multi-stage, vertical and other pumps with application in various industries. Goulds Pumps, Inc. offers its
products under the Goulds Pumps brand. ITT’s Engineered Valves division is involved in the manufacturing of process
valves serving the mining, power, pulp and paper, biopharmaceutical and general industrial markets.
ITT PRO Services offers aftermarket solutions for Industrial Process. Its services include parts supply, field service,
energy and reliability assessments, inventory optimization, repairs, upgrades and overall equipment maintenance along
with the provision of ProShop Repair and Upgrades, Goulds Pumps Parts, ProSmart, ProCast, PumpSmart and Plant
Performance Services. ITT C’treat provides water treatment systems for offshore oil and gas production platforms.
The Motion Technologies segment manufactures shock absorbers, brake pads and damping technologies for the global
automotive, trailer, truck and public bus and rail transportation markets. The segment consists of two businesses: Friction
Technologies and KONI. It is headquartered in Lainate, Italy. During FY2011, the segment generated 29.90% of the
company’s total revenues.
The Friction Technologies business is involved in the production of a range of brake pads, which are installed as original
equipment (OE pads) on cars and light and heavy duty commercial vehicles. The business provides its products to
original equipment manufacturers (OEM), Tier-1 and Tier-2 brake manufacturers. It also produces aftermarket brake pads
serving the automotive service and repairs market.
The KONI business is involved in the manufacturing of shock absorber products through three main product m