Lower costs boost ITT’s 4th-quarter profit, company raises 2010 guidance

ITT 4th-quarter profit rises, company ups outlook

WHITE PLAINS, N.Y. — Defense contractor ITT Corp. said Wednesday fourth-quarter profit rose 7 percent as lower costs helped offset a sales decline.

The company also raised its full-year outlook.

ITT earned $199.2 million, or $1.08 per share, in the three months ended Dec. 31, up from $185.5 million, or $1.01 per share, a year ago.

Excluding one time items, profit totaled 97 cents per share.

Analysts polled by Thomson Reuters, on average, predicted a smaller profit of 93 cents per share. Analyst estimates typically exclude one-time items.

Revenue fell 3 percent to $2.87 billion from $2.95 billion last year. Analysts expected revenue of $2.88 billion.

The company said better productivity and lower restructuring costs offset lower volume.

Revenue from its largest unit, defense, edged down 1 percent to $11.6 billion. Total costs and expenses fell 4 percent to $2.58 billion.

“A solid performance, although weakness in defense revenues could cause concern,” said Deustche Bank analyst Nigel Coe in a note to investors.

For the year, profit fell 19 percent to $643.7 million, or $3.50 per share, from $794.7 million, or $4.32 per share a year ago.

Revenue fell 7 percent to $10.9 billion from $11.69 billion.

ITT raised its fourth-quarter outlook to $3.90 to $4.10 per share from previous guidance of $3.85 to $4.05 per share.

Analysts predict $4.01 per share.

Its shares rose 27 cents to $50.72 in morning trading.