ITT Corporation (ITT) won a contract to supply 220 enhanced night vision goggles and associated accessories to the U.S. Army. The work will be completed by August 2013. The value of the contract is $260.5 million.
For the U.S. military and its allies, ITT is the leading full-service supplier of most of the advanced night vision equipment available in the market.
ITT plays an important role in vital markets, including water and fluids management, global defense and security, and motion and flow control. It possesses 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 businesses: 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 the US.
ITT Corporation, with 2009 revenues of $10.9 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.
We currently have a Neutral recommendation on ITT Corporation.
ITT CORP (ITT): Free Stock Analysis Report
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