ITT Corporation (ITT) reported third quarter 2009 net income from continuing operations of $190 million or $1.03 per share, exceeding the Zacks Consensus Estimate of 89 cents. The results included the effects of improved operating performance primarily driven by productivity initiatives. Revenue for the quarter was $2.7 billion, down 6% year-over-year and down 4% excluding the [...]

(ITT) ITT Corporation’s Earnings Report Beats Estimates

ITT Corporation (ITT) reported third quarter 2009 net income from continuing operations of $190 million or $1.03 per share, exceeding the Zacks Consensus Estimate of 89 cents.
 
The results included the effects of improved operating performance primarily driven by productivity initiatives. Revenue for the quarter was $2.7 billion, down 6% year-over-year and down 4% excluding the impact of foreign exchange and acquisitions on a comparable basis.
 
In the Defense Electronics & Services segment, revenue of $1.57 billion was up 2% over the comparable period in 2008. The segment recorded growth in revenues at every value center, except for the Communications Systems division, where the expected reduction in domestic SINCGARS radio deliveries resulted in a negative comparison.

In Fluid Technology, third quarter 2009 revenue was $826 million, down 13% year-over-year and 10% organically. Results outperformed expectations, despite challenged industrial, municipal and residential market conditions.

In Motion & Flow Control, revenue for the quarter was $307 million, down 22% in total and 16% organically compared to the prior year. Revenue in the automotive market exceeded expectations, primarily due to the recent stimulus activity in Europe, while performance in general industrial markets met expectations, despite some contraction. Rail markets in Europe also showed gains.

Free cash flow generation of $916 million for the first nine months of the year represents a 174% conversion of income from continuing operations, excluding special items primarily related to the charge for asbestos liability.

ITT forecasts its full-year earnings excluding special items to be $3.70 to $3.74 per share. The current Zacks Consensus Estimate is $3.75. Full-year 2009 revenue is expected to be in the range of $10.9 billion to $11.0 billion.

ITT Corporation is a high-technology engineering and manufacturing company operating on all seven continents in three vital markets: water and fluids management, global defense and security, and motion and flow control. With a heritage of innovation, ITT partners with its customers to deliver solutions that create more livable environments, provide protection and safety and connect the world. Major competitors include Lockheed Martin Corporation (LMT) and Raytheon Company (RTN).

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Flowserve Corporation (FLS) announced third quarter 2009 fully diluted EPS of $2.07, up 3 cents or 1%, including realignment charges of 5 cents per share. This was higher than the Zacks Consensus Estimate of $2.00 per share. Bookings for the quarter were $975 million, down 29%, or 26% excluding negative currency effects of $37 million. Sales [...]

(FLS) Flowserve Corporation Beats Analyst’s Consensus

Flowserve Corporation (FLS) announced third quarter 2009 fully diluted EPS of $2.07, up 3 cents or 1%, including realignment charges of 5 cents per share. This was higher than the Zacks Consensus Estimate of $2.00 per share. 

Bookings for the quarter were $975 million, down 29%, or 26% excluding negative currency effects of $37 million. Sales for the quarter were $1.05 billion, down 9%, or 5% excluding negative currency effects of $47 million. 

Gross margin increased 150 basis points to 36.6%, including realignment charges of 20 basis points. Flowserve also posted a quarterly operating margin of 15.3%, including charges totaling 110 basis points. Backlog, which represents unexecuted orders, was $2.66 billion, including positive currency effects of $90 million, when compared to $2.83 billion of backlog at Dec 31, 2008. 

In the pump division, bookings of original equipment decreased approximately 60%, which represents most of the total decrease. This original equipment decrease was driven by a decline across all industries, primarily the chemical, oil and gas and general industries markets. 

In the flow control division, bookings decrease was generally attributable to a weakness in the chemical and general industries markets in Europe, Middle East and Africa and Asia-Pacific, partially offset by nuclear orders in North America. Large project awards were delayed as customers reviewed demand, pricing and other savings opportunities. 

In flow solutions division, bookings decrease was primarily attributable to decreased original equipment. The decrease in sales was driven by sales declines in all regions. Reductions in project sales shifted the sales mix toward aftermarket business with a related beneficial impact on gross margin. 

Cash and equivalents were $291 million, long-term debt was $541 million and shareowner’s equity was $1.7 billion. 

Flowserve Corporation develops, manufactures and sells precision-engineered flow control equipment, besides providing a range of aftermarket equipment services. The company operates in three divisions: Flowserve Pump, Flow Control and Flow Solutions. The company sells its products through direct sales force as well as through distributors and sales representatives. Major competitor is ITT Corporation (ITT).
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• Sony (NYSE:SNE) said weak cell phone sales and lower PlayStation III console prices resulted in another quarterly loss.  The firm also said full-year prospects improved from the company's aggressive cost-cutting measures

• Alcatel-Lucent (NYSE:ALU) reported its twelfth straight quarterly loss of $269 million. The firm said it expects operating results to break even by yearend

• Duke Energy (NYSE:DUK) reported third quarter earnings one cent above Zacks estimates at 40 cents, as revenues of $3.4 billion were below Zacks estimates of $4.25 billion. The company noted, "Industry sales volumes continued to show signs of stabilization"

• ITT Industries (NYSE:ITT) reported third quarter beat Zacks estimates by 14 cents a share, coming in at $1.03 on inline revenues of $2.7 billion, down 6.3%

• Coventry Health Care (NYSE:CVH) reported its third quarter of 68 cents topped Zacks estimates by 14 cents, on inline revenues of $3.44 billion, up 17.7%

• Aon (NYSE:AOC), reported third quarter results of 65 cents a share, a penny miss, on revenues of $1.81 billion. The firm set full-year guidance at $3.25-$3.45

• Constellation Energy (NYSE:CEG) posted third quarter earnings of $1.23, 16 cents above Zacks estimates, on revenues of $4.03 billion. The firm said it expects 2009 results of $3.25 to $3.45 a share

• Citigroup (NYSE:C) raised its rating on Toll Brothers (NYSE:TOL) to "buy" and maintained $23 price target

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