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ITT Benefits From Strength in End-Markets, Acquired Assets
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ITT Inc. (ITT - Free Report) is benefiting from strength in the industrial, aerospace and defense end markets. Higher sales volume, pricing actions and robust order growth are also aiding the company. Increasing number of projects, and robust demand for parts and services in the aftermarket business are aiding the Industrial Process (IP) segment. Strengthening aero components and defense businesses are supporting the Connect & Control Technologies (CCT) segment. Friction OE on time delivery and accretive pricing actions are driving growth for the Motion Technologies segment.
The company’s focus on product innovation and business expansion through the addition of assets is advantageous. The acquisition of Micro-Mode Products, Inc. in May 2023 enhanced ITT's product portfolio and customer base, specifically for long-term defense programs. The addition of Micro-Mode grew ITT's existing North America connectors platform, which is a part of its CCT segment. ITT acquired Clippard Instrument Laboratories’ product lines in August 2022. With product lines of stainless steel, brass and aluminum cylinders, and volume tanks, the acquisition expands ITT’s Compact Automation product offering in the robotics, packaging and automation end markets.
Among other companies from the Conglomerates sector, General Electric Company (GE - Free Report) and Carlisle Companies Incorporated (CSL - Free Report) focus on strengthening and expanding its businesses through the acquisition of assets.
General Electric acquired Nexus Controls in April 2023. This buyout allows the creation of a single, full-service controls business line for the further development of GE’s proprietary Mark Vle controls systems platform and is aiding the company’s Power segment.
The acquisition is aligned with GE’s commitment to invest in leading controls technology and expertise to enhance customer experience.
Over the past few years, Carlisle has become one of the major European manufacturers and suppliers of EPDM roofing systems, with acquisitions in Germany and the Netherlands. The company’s acquisition of MBTechnology, Inc. (February 2022) strengthened the Carlisle Construction Materials (CCM) segment's building products platform, boosting its energy-efficient solution offerings.
Also, in September 2021, Carlisle completed the acquisition of California-based Henry Company, which boosted the CCM segment's product offerings for repair and restoration works as well as construction activities.
Coming back to ITT, the company’s measures to reward its shareholders through share repurchases and dividend payouts are encouraging. In 2022, the company bought back shares worth $245.3 million and paid out dividends of $87.9 million. In the first six months of 2023, dividend payment totaled $48.1 million and share repurchases were $60 million. The quarterly dividend rate was hiked 10% in February 2023.
However, escalating costs and expenses have been a major concern for ITT over time. The company has been facing supply-chain constraints, particularly in the commercial aerospace end market. Also, the decline in the value of the local currencies of foreign markets relative to the U.S. dollar might affect the company’s top line in the quarters ahead.
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ITT Benefits From Strength in End-Markets, Acquired Assets
ITT Inc. (ITT - Free Report) is benefiting from strength in the industrial, aerospace and defense end markets. Higher sales volume, pricing actions and robust order growth are also aiding the company. Increasing number of projects, and robust demand for parts and services in the aftermarket business are aiding the Industrial Process (IP) segment. Strengthening aero components and defense businesses are supporting the Connect & Control Technologies (CCT) segment. Friction OE on time delivery and accretive pricing actions are driving growth for the Motion Technologies segment.
The company’s focus on product innovation and business expansion through the addition of assets is advantageous. The acquisition of Micro-Mode Products, Inc. in May 2023 enhanced ITT's product portfolio and customer base, specifically for long-term defense programs. The addition of Micro-Mode grew ITT's existing North America connectors platform, which is a part of its CCT segment. ITT acquired Clippard Instrument Laboratories’ product lines in August 2022. With product lines of stainless steel, brass and aluminum cylinders, and volume tanks, the acquisition expands ITT’s Compact Automation product offering in the robotics, packaging and automation end markets.
Among other companies from the Conglomerates sector, General Electric Company (GE - Free Report) and Carlisle Companies Incorporated (CSL - Free Report) focus on strengthening and expanding its businesses through the acquisition of assets.
General Electric acquired Nexus Controls in April 2023. This buyout allows the creation of a single, full-service controls business line for the further development of GE’s proprietary Mark Vle controls systems platform and is aiding the company’s Power segment.
The acquisition is aligned with GE’s commitment to invest in leading controls technology and expertise to enhance customer experience.
Over the past few years, Carlisle has become one of the major European manufacturers and suppliers of EPDM roofing systems, with acquisitions in Germany and the Netherlands. The company’s acquisition of MBTechnology, Inc. (February 2022) strengthened the Carlisle Construction Materials (CCM) segment's building products platform, boosting its energy-efficient solution offerings.
Also, in September 2021, Carlisle completed the acquisition of California-based Henry Company, which boosted the CCM segment's product offerings for repair and restoration works as well as construction activities.
Coming back to ITT, the company’s measures to reward its shareholders through share repurchases and dividend payouts are encouraging. In 2022, the company bought back shares worth $245.3 million and paid out dividends of $87.9 million. In the first six months of 2023, dividend payment totaled $48.1 million and share repurchases were $60 million. The quarterly dividend rate was hiked 10% in February 2023.
However, escalating costs and expenses have been a major concern for ITT over time. The company has been facing supply-chain constraints, particularly in the commercial aerospace end market. Also, the decline in the value of the local currencies of foreign markets relative to the U.S. dollar might affect the company’s top line in the quarters ahead.