ITT Corporation (ITT) has been awarded a contract to provide Software In-Service Support (including technical work, modifications and upgrades) for the Joint Tactical Radio System (JTRS) Bowman Waveform (JBW).
The JBW provides U.S. JTRS software-enabled radios with an operating waveform that is also recognized by UK’s Bowman Waveform, enabling secured networked voice and data for joint operations on the battlefield.
The contract covers a five-year period and is worth $49.5 million.
ITT plays an important role in vital markets, including global defense and security, water and fluids management 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 across 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 aging 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 United States.
 
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.
 
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