ITT 's Second-Quarter Revenue Up 11 Percent; Defense Sector Performs Well

Company's profits rise just 2 percent, but it raises guidance for the year.

WHITE PLAINS, N.Y. (AP) - ITT Corp., which makes products ranging from wastewater handling systems to electronic warfare technologies for military aircraft, said Friday its second-quarter profit increased 2 percent, helped by strong defense-sector sales.

Quarterly earnings rose to $140.9 million, or 75 cents per share, from $137.7 million, or 73 cents per share during the same period last year.

Results included charges from restructuring and discontinued operations of $8.3 million, or 5 cents per share, and 2 cents per share in stock options expenses. Without those items, profit totaled 80 cents per share.

Analyst polled by Thomson Financial forecast a profit of 77 cents per share. Analyst forecasts usually exclude restructuring charges and gains or losses from businesses being divested.

Revenue grew 11 percent to $2.07 billion, from $1.86 billion, exceeding analyst expectations for revenue of $2.01 billion.

Sales and revenue in the company's defense electronics unit grew 18 percent to $918.5 million from $779.5 million a year ago. The company said its aerospace communications unit led revenue growth.

ITT raised its outlook for the fiscal year to earnings of $2.95 to $3 per share on revenue of $8.08 billion to $8.17 billion, up from profit of $2.91 to $2.97 per share on revenue of $7.90 billion to $8.01 billion. The company cited increasing demand for its water-related products and services as well as continued growth in its defense segment.

Analysts are looking for the company to make $2.98 per share on revenue of $8.06 billion.

More in Supply Chain