ITT Corp. (ITT), which plans to split itself into three companies, projected $500 million in breakup costs and reported first-quarter profit that beat analysts’ estimates.
The separation costs will be incurred before the breakup that is planned to take place before the end of 2011, White Plains, New York-based ITT said today in a statement. First- quarter profit was 98 cents per share, higher than the 93 cents average estimate from a Bloomberg survey of 14 analysts.
ITT said in January it would split into water, industrial and defense companies, isolating the effect of planned cuts in U.S. military spending and allowing each of the businesses to focus on core strengths. Profit and sales fell at the defense division in the first quarter, offset by increases in the fluid and control divisions, according to the statement.
The company today narrowed its full-year profit forecast range to $4.70 to $4.82 a share, from $4.62 to $4.82. ITT reduced the 2011 sales forecast to $11.3 billion from $11.4 billion, citing uncertainty in the defense market.
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