(By Balachander) ITT Corp. (NYSE: ITT), a maker of engineered critical components, reported a quarterly profit, helped by revenue growth and a sharp decline in transformation costs.
ITT, which announced $75 million of additional share buyback, lifted its cash dividend by 10 percent to 10 cents per share for the first quarter of 2013, which will be payable on April 1, 2013, to shareowners of record on March 15, 2013.
Adjusted earnings per share (EPS) would have been 39 cents a share for the fourth quarter before the impact of Bornemann acquisition, the company said.
Adjusted EPS from continuing operations increased to 37 cents from 36 cents.
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Earnings were $32.4 million or $0.35 per share for the quarter, compared with a loss of $529 million or $5.68 per share in the comparable period of last year.
Revenue rose 9 percent to $554.3 million. Organic revenue increased 7 percent.
Wall Street analysts, on average, expected earnings of 38 cents per share on revenue of $537.6 million.
ITT makes engineered industrial products including industrial pumps, shock-absorbers, friction materials for automotive and truck application, electronic connectors, aircraft fueling systems and motion control products.
The company recorded transformation costs of $1.1 million versus $312 million in the year-ago quarter
Looking ahead for the full year, the company expects adjusted EPS from continuing operations in the range of $1.80 to $1.90 on revenue growth between 9 percent and 11 percent. Analysts expect earnings of $1.89 per share on revenue growth of 9 percent.
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The company operates in four segments: Industrial Process, Motion Technologies, Interconnect Solutions, and Control Technologies.
The stock, which has been trading in the 52-week range of $16.88 to $26.50, ended at $25.24 on Tuesday.