Investor News
ITT Corporation Announces $1 Billion Share Repurchase Program and Declares $0.11 Per Share Fourth Quarter Dividend
White Plains, New York, October 27, 2006 -- ITT Corporation (NYSE: ITT) announced today that its Board of Directors has authorized the company to repurchase up to $1 billion of its common stock from time to time in the open market. The repurchases will occur over a period of up to three years.
“This share repurchase program is consistent with ITT's commitment to a balanced and disciplined capital allocation process," said George E. Minnich, Senior Vice President and Chief Financial Officer. “Our capital priorities are centered on those investments necessary to grow our businesses organically and through acquisitions, while also providing cash returns to shareholders. With our strong balance sheet and robust cash flow generation, we continue to support our growth priorities while returning additional cash to shareholders through the repurchase program announced today."
The program announced today replaces the Company's current practice which has been to cover the shares granted or exercised in the context of ITT's performance incentive plans. Year to date, September 30, 2006, ITT repurchased 2.5 million shares for $136.4 million.
Under the new program, shares will be repurchased subject to management's evaluation of market conditions, applicable legal requirements and other factors. There is no guarantee as to the exact number of shares to be repurchased and the company has reserved the right to terminate the repurchase program at any time.
In other action, the Board of Directors of ITT Corporation declared an $0.11 per share dividend for the fourth quarter of 2006. The dividend is payable on January 1, 2007 to shareholders of record on November 17, 2006.
About ITT Corporation
ITT Corporation (www.itt.com) supplies advanced technology products and services in several growth markets. ITT is a global leader in the transport, treatment and control of water, wastewater and other fluids. The company plays a vital role in international security through its defense communications and electronics products; space surveillance and intelligence systems; and advanced engineering and related services. It also serves the growing leisure marine and electronic components markets with a wide range of products. Headquartered in White Plains, NY, the company generated $7.0 billion in 2005 sales. In addition to the New York Stock Exchange, ITT Corporation stock is traded on the NYSE Arca, Paris, London and Frankfurt exchanges.
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“Safe Harbor Statement" under the Private Securities Litigation Reform Act of 1995 (“the Act"):
Certain material presented herein includes forward-looking statements intended to qualify for the safe harbor from liability established by the Act. These forward-looking statements include statements that describe the Company's business strategy, outlook, objectives, plans, intentions or goals, and any discussion of future operating or financial performance. Whenever used, words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target" and other terms of similar meaning are intended to identify such forward-looking statements. Forward-looking statements are uncertain and to some extent unpredictable, and involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed in, or implied from, such forward-looking statements. Factors that could cause results to differ materially from those anticipated by the Company include general global economic conditions, decline in consumer spending, interest and foreign currency exchange rate fluctuations, availability of commodities, supplies and raw materials, competition, acquisitions or divestitures, changes in government defense budgets, employment and pension matters, contingencies related to actual or alleged environmental contamination, claims and concerns, intellectual property matters, personal injury claims, governmental investigations, tax obligations, and changes in generally accepted accounting principles. Other factors are more thoroughly set forth in Item 1. Business, Item 1A. Risk Factors, and Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements in the ITT Industries, Inc. Annual Report on Form 10-K for the fiscal year ended December 31, 2005, and other of its filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Peter Milligantel +1 914 641 2030
