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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (2694)	10/14/2011 12:33:54 AM
From: richardred	Respond to of 7255

CORRECTED - ITT says emerging markets, M&A to aid growth after spin-offs Oct 13 (Reuters) - ITT Corp on Thursday said growth in emerging markets and acquisitions would fuel sales and profits after it splits into three companies. The company, which is spinning off its water and defense segments later this month, also said product orders are holding up despite global economic jitters. "We're not seeing challenges in our orders at this point," Chief Financial Officer Denise Ramos, said during an investor presentation on Thursday. She will become chief executive of the new ITT after the spin-offs. The new ITT Corp will provide components for aerospace, rail, energy and other markets with estimated 2011 revenue of $2.1 billion. Its products include shock absorbers used on railroad cars and buses, aircraft parts and industrial pumps used to refine oil and gas. ITT had revenue of about $11 billion in 2010. Ramos said expansion in places such as China, India and Brazil would bolster growth from emerging markets. She also said acquisitions that fill gaps in technology or complement its core businesses would aid results. "Our sweet spot for acquisitions is companies with annual revenues between $15 million and $50 million," Ramos said. ITT said on Thursday that it will buy Blakers Pump Engineers, an Australia company that is a distributor for its Goulds Pumps industrial business. The addition of Blakers, which had annual revenue for the latest year of about $27 million, will help ITT expand in energy and mining industries in Australia. Terms weren't disclosed. Based in White Plains, New York, ITT is spinning off its water and defense units to take advantage of recovering commercial and industrial markets as global military spending comes under pressure. The new water company will be called Xylem and the defense spinoff will be called ITT Exelis. ITT shares closed down 2.3 percent to $44.88 on the New York Stock Exchange on Thursday. reuters.com