ITT Corp's profit beats on strong U.S., emerging market growth
(Reuters) - ITT Corp's (ITT.N) adjusted quarterly profit handily beat market expectations on strong sales of components to the U.S. mining, chemical and industrial sectors as well as emerging markets, sending shares up as much 15 percent in morning trade.
The company, which caters to the aerospace, rail and energy markets, said it expects sales to grow by 10 percent for 2012 in emerging markets, driven by oil and gas in the Middle East, mining in Latin America and automotive in China.
Total revenue rose 3 percent to $567.5 million for the second quarter from a year earlier, helped by 18 percent growth in the United States.
Excluding items, ITT earned 50 cents per share, well ahead of Wall Street's estimates of 37 cents per share.
Revenue in the industrial process business - its largest segment - jumped 16 percent to $233 million. The segment makes pumps and valves for the oil and gas, chemical, mining and industrial markets.
ITT maintained its full-year 2012 adjusted earnings forecast of between $1.62 and $1.72 per share.
Analysts on average were expecting earnings of $1.64 cents per share, excluding items, according to Thomson Reuters I/B/E/S.
Shares of the White Plains, New York-based company, which spun off its defense and water management segments in October to take advantage of the recovering commercial markets, were up 12 percent at $20.41 on the New York Stock Exchange.
(Reporting by Sagarika Jaisinghani in Bangalore; Editing by Maju Samuel, Supriya Kurane)