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ITT POSTS HIGHER FIRST QUARTER RESULTS

 NEW YORK, April 27 /PRNewswire/ -- ITT Corporation (NYSE: ITT) announced today that net income for the first quarter of 1993 was $175 million, or $1.30 per common equivalent share on a fully diluted basis, compared with a restated net loss of $487 million or $3.71 per fully diluted share ($4.38 primary) in the 1992 first quarter. Last year's quarter included a cumulative catch up adjustment of $625 million, or $4.71 per fully diluted share related to the adoption of two new FASB accounting principles. Excluding this impact, net income in the 1992 quarter was $138 million, or $1.00 per fully diluted share. On a primary basis, net income per share was $1.37 for the 1993 quarter, compared to $1.08 per share in the year-ago period, excluding the previously mentioned accounting adjustment.
 The 30 percent improvement in earnings per share in the 1993 quarter came on sales of $5.1 billion, the same as the 1992 quarter. The gains also were achieved despite extraordinary catastrophe losses at ITT Hartford and significantly lower realized portfolio gains at both ITT Hartford and ITT Financial. Catastrophe losses relating to Winter Storm Josh and the bombing of the World Trade Center in New York totalled $41 million after tax, or 32 cents per fully diluted share (34 cents primary). After tax portfolio gains totalled $42 million, or 32 cents per fully diluted share (34 cents primary), compared to $84 million, or 63 cents per fully diluted share (73 cents primary) in the 1992 quarter.
 "We are very pleased with the operating performance of our businesses during the quarter," Rand V. Araskog, chairman, president and chief executive said. "Clearly the major actions we took during 1992 are showing results. We have set solid goals for 1993 and we are committed to attaining them," Mr. Araskog concluded.
 Income from ongoing segments for the first quarter increased by 31 percent over the prior year's quarter.
 Companies in ITT's Financial and Business Services Group, including ITT Hartford, ITT Financial and ITT Communications and Information Services, all performed well.
 Operating results at ITT Hartford, excluding the previously mentioned extraordinary catastrophe losses and portfolio gains, were significantly higher than 1992, primarily due to improved domestic casualty underwriting results and improved results in the North American Life operations. In addition, last year's results included a $10 million pre-tax gain on the sale of Piper Jaffray Hopwood. Despite lower revenues from reduced unsecured consumer small loan business, ITT Financial posted an impressive income gain resulting from lower loss provisions and borrowing costs. ITT Communications and Information Services income rose slightly, primarily due to lower overhead expenses at World Directories and higher enrollments at Educational Services.
 ITT's Manufactured Products Group including ITT Automotive, ITT Defense & Electronics and ITT Fluid Technology also registered solid results for the period.
 ITT Automotive was up sharply largely due to the favorable results of continuing cost improvement actions. ITT Fluid Technology also posted a strong increase as a result of lower operating costs. ITT Defense & Electronics results were flat, as the benefits of last year's cost improvement actions and favorable performance on mature contracts offset the reduced sales volume.
 Results at ITT Rayonier were slightly better than the 1992 quarter due to higher prices for timber and wood products mostly offset by the absence of a $8 million pre-tax gain on the sale of timberlands in last year's first quarter and lower margins in specialty pulp products.
 Higher occupancy and rates, particularly in the renovated New York City properties and significantly lower overhead expenses helped ITT Sheraton turn an operating loss in the 1992 period into an operating profit for the 1993 first quarter.
 -0- 4/27/93
 /CONTACT: Jim Gallagher of ITT Corporation, 212-258-1261/
 (ITT)


CO: ITT Corporation ST: New York IN: SU: ERN

TS -- NY020 -- 1128 04/27/93 08:09 EDT
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Date:Apr 27, 1993
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