Loading...
•
Jul 03, 2021
ITT Q2 2021 Earnings Report
ITT reported strong second-quarter results and raised 2021 guidance, driven by strength in the Friction Segment.
Key Takeaways
ITT Inc. reported a 34% year-over-year revenue increase (29% organic) in the second quarter, driven by growth in Motion Technologies’ Friction business and other segments. Adjusted EPS increased by 65% to $0.94, exceeding 2019 levels. The company completed the divestiture of legacy asbestos liabilities and raised its full-year 2021 revenue and EPS guidance.
Revenue increased by 34% year-over-year, with organic revenue up by 29%.
Motion Technologies' Friction business was a primary driver of revenue growth.
Adjusted EPS of $0.94 increased by 65% compared to the prior year and exceeded adjusted EPS for the same quarter in 2019.
The company divested all legacy asbestos liabilities.
ITT
ITT
ITT Revenue by Segment
Revenue by Segment
Motion Technologies Revenue
CapyFin.comIndustrial Process Revenue
CapyFin.comConnect & Control Technologies Revenue
CapyFin.com Forward Guidance
The company raised its full-year 2021 guidance to reflect the better second quarter results and stronger outlook than anticipated for the second half of 2021 despite higher than anticipated headwinds from raw material costs, particularly in our Motion Technologies segment.
Positive Outlook
- Revenue growth of 11% to 13%.
- Organic revenue growth of 8% to 10%.
- Earnings per share of $3.35 to $3.55, up 329% to 355%.
- Adjusted earnings per share of $3.90 to $4.05 per share, up 22% to 27%.
- Segment operating margin of 16.8% to 17.3%, up 390 to 440 bps.
Challenges Ahead
- Higher than anticipated headwinds from raw material costs.
- Particularly in our Motion Technologies segment.
- Adjusted segment operating margin of 16.9% to 17.4%, up 170 to 220 bps, are unchanged due primarily to the impact of higher raw material costs offsetting higher sales volumes anticipated in the second half of 2021.
- Not possible, without unreasonable efforts, to estimate the impacts of foreign currency fluctuations, acquisitions and certain other special items that may occur in 2021 as these items are inherently uncertain and difficult to predict.
- As a result, the Company is unable to quantify certain amounts that would be included in a reconciliation of organic revenue growth and adjusted segment operating margin to the most directly comparable GAAP financial measures without unreasonable efforts and has not provided reconciliations for these forward looking non-GAAP financial measures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income