ITT Corporation (ITT) announced that NASA has selected its OI Analytical total organic carbon analyzer and WTW VARIO conductivity temperature meter. The end-use of these will be on the final flight of the Space Shuttle Discovery and by the crew of the International Space Station for measurement of conductivity and analyzing quality of water.
These instruments will be used to analyze the organic carbon level in water to assess that it is safe for human consumption.
ITT plays an important role in vital markets, including water and fluids management, global defense and security, and motion and flow control. It possesses industry leading brands in the Fluid Technology and Motion & Flow Control businesses. The company is well diversified and serves attractive end-markets with a broad geographic footprint.
We are particularly bullish about these two segments: a) water equipment (primarily pumps), which should benefit from the replacement and upgrade of ageing networks in developed markets and the build-out of infrastructure in emerging markets, and b) ITT’s Defense business, with the bulk of sales derived from electronic and network-centric warfare.
The Defense Electronics & Services business segment is subject to a number of risks, including defense budgets and government contract requirements and regulations, which could have an adverse impact on the results of its operations.
The Fluid Technology and Motion & Flow Control business segments are subject to certain industry risks, which could have an adverse impact on the results of its operations.
Adverse macroeconomic and business conditions, particularly in the local economies of the countries or regions where the company operates, may negatively affect its revenues, profitability and operations.
The company’s Defense Electronics and Services segment develops, manufactures and supports high-technology electronic systems and components for worldwide defense and commercial markets, and provides communications systems and engineering and applied research. Principal manufacturing facilities are located in the United Kingdom and United States of America.
ITT Corporation, with 2010 revenues of $11 billion, is a global multi-industry leader in high-technology engineering and manufacturing. It is engaged in the design, manufacture and sale of a wide-range of engineered products and the provision of services. Lockheed Martin Corporation (LMT) is a major competitor.
We currently have a Neutral recommendation on ITT Corporation.
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