ITT Corporation (ITT - Analyst Report) reportedfirst quarter 2013 earnings per share of 47 cents, which were 9.3% above the Zacks Consensus Estimate of 43 cents. Earnings were up 21% year over year. Profits during the quarter were driven by stronger operational performance, improved volumes and favorable mix.
On a GAAP basis, the company reported earnings of 20 cents a share compared to 11 cents a share in the year-ago quarter.
Total revenue in the quarter increased 7.1% to $608.2 million compared to $568.1 million in the prior-year period. Organic revenue for the quarter grew 2% for the quarter. Revenue growth during the quarter was driven by 11% increase in emerging markets. In addition, gains in key global end-markets including energy and transportation and a solid performance from the recently acquired Bornemann Pumps business all contributed the top-line growth.
The Industrial Process segment reported revenues of $257 million, reflecting 14.0% increase. Organic revenues were flat compared to the prior year. Results during the quarter were driven by 28% increase in organic global oil and gas shipments as well as the impact from the company’s successful acquisition of Bornemann Pumps, partially offset by mining declines in emerging markets.
Revenues in theMotion Technologies increased 7% to $193 million, driven by significant gains in the global automotive brake pad market. The top line also reflected a 24% increase in the United States, 20% growth in emerging markets and 3% growth in difficult Western European automotive markets, which was partially offset by weakness in the global rail shock absorber market.
Interconnect Solutionsrevenue for the quarter declined 2% to $91 million, as gains in general industrial and oil and gas connectors were offset by weakness in European aerospace, transportation and communication connectors. Organic revenue declined 1%.
Control Technologies, revenue decreased 2% to $69 million as growth in North American and European aerospace was offset by declines related to the fulfillment of an aerospace program and weakness in the global general industrial and defense markets.
Income and Expenses
For 2012, the company reported operating income of $37.2 million compared to $36.7 million in the prior-year quarter. The increase was driven by increased volume and strong operating productivity, partially offset by negative project mix shift and post-spin incremental recurring costs.
Balance Sheet & Cash Flow
At the end of the quarter, cash and cash equivalents were $483.1 million with no long-term debt. The company had shareowner’s equity of $662.7 million.
Concurrent with the full year earnings release, the company announced 2013 guidance. ITT expects adjusted earnings per share to increase 10% in the range of $1.80 to $1.90 per share. The guidance reflects a $0.02 negative impact from the recent currency devaluation in Venezuela.
Total revenue is expected to grow 9% to 11% driven by growth in the oil and gas, chemical and industrial markets, share gains in the global automotive market, the impact of the Bornemann Pumps acquisition and emerging market growth, partially offset by weakness in the mining and defense end markets.
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