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 AUBURN HILLS, Mich., Oct. 22 /PRNewswire/ -- ITT Corporation (NYSE: ITT), the parent company of Auburn Hills-based ITT Automotive, has issued the following news release that may be of interest to the Detroit-area business community.
 ITT Corporation, t?h 1992 revenues of $21.7 billion, is a multinational enterprise engaged in four major business areas: ITT Financial and Business Services, ITT Manufactured Products, ITT Rayonier, and ITT Sheraton. ITT has approximately 106,000 employees.
 ITT Automotive is a $3.5 billion global supplier to the automotive industry that comprises eight product groups. They are Brake Systems, including ITT Automotive Teves anti-lock brakes, traction-control and total brake systems; Wiper Systems, including ITT Autov?e SWF wipers, arms, blades and total wiper systems; Fluid Handling Systems; Precision Die Castings; Structural Components; Switches and Lamps; Electric Motors; and Aftermarket Products, including Koni shock absorbers and Aimco brake components.
 Third-quarter and nine-month ITT Corporation results, which were released Thursday, Oct. 21, follow:
 NEW YORK, Oct. 21 -- Citing significant operational improvement, ITT Corporation today reported improved net income for the 1993 third quarter and nine months.
 Net income for the third quarter was $252 million, or $1.91 per fully diluted share, on sales of $5.2 billion, compared to $113 million, or 80 cents per fully diluted share, on sales of $5.5 billion, in the 1992 quarter. On a primary basis, net income per share for the quarter was $2.03, compared to a restated 94 cents last year.
 "We are pleased with the performance of our operations this year, through the third quarter," Rand V. Araskog, ITT Chairman, President and Chief Executive said. "We continue to execute business fundamentals in each of our core businesses." The third-quarter and nine-month periods improved 42 percent and 93 percent respectively over the comparable periods in 1992, excluding unusual items in each case.
 As previously announced, ITT recently completed a program aimed at increasing the effectiveness and productivity at ITT Headquarters and the headquarters of the company's businesses. An after-tax charge of $20 million, or 15 cents per share resulting from the process, is included in the third quarter for estimated severance and other costs associated with the program. This charge is in addition to a second- quarter provision of $13 million, or 10 cents per share, for the first phase of the program. The third quarter also included a one-time benefit of $22 million, or 17 cents per share, representing the effect of 1993 changes in the United States tax law. These changes will increase the company's tax burden in future periods.
 Capital gains in the insurance portfolios added $23 million, or 18 cents per share after tax, as compared to $185 million, or $1.40 per share in the 1992 third quarter.
 A number of unusual items in the 1992 third quarter distort the comparison, including an after tax gain of $622 million, or $4.71 per share, on the company's sale of its 30 percent stake in Alcatel, NV. In addition, the quarter also included an after-tax charge of $759 o?n, or $5.75 per share to cover anticipated losses in surplus lines and reinsurance business written before 1986 by ITT Hartford's Cameron & Colby Group, as well as expected legal defense costs associated with environmentally related claims. The 1992 quarter was further impacted by catastrophe losses of $95 million after tax, or 72 cents per share from Hurricanes Andrew and Iniki.
 Net income for the 1993 nine-month period was $694 million, or $5.23 per fully diluted share, compared to $357 million, or $2.55 per share in the 1992 period before the one-time cumulative catch-up adjustment recorded in the first quarter of 1992 associated with the adoption of two new accounting principles. On a primary basis, net income per share for the nine months of 1993 was $5.55, compared to a restated $2.86 in the 1992 period.
 Sales and revenues for the 1993 nine months were $15.8 billion, compared to $15.9 billion in 1992.
 The ITT Insurance and Financial businesses recognized capital gains in the insurance portfolios of ITT Hartford and ITT Financial for nine months which totaled $90 million after tax, or 70 cents per share, compared to $291 million after tax or $2.20 per share in the comparable period last year.
 Companies in ITT's Financial and Business Services Group comprised of ITT Hartford, ITT Financial and ITT Communications and Information Services (COINS), all performed well in the quarter. Excluding last year's unusual items, ITT Hartford's operating results improved substantially in the quarter mainly due to improved underwriting results in its international operations and the absence of operating losses from the Cameron & Colby business. In the same group, operating results at ITT Financial approximated the 1992 quarter after excluding the significant capital gains in that period; and operating income from ongoing operations at ITT COINS was lower than the prior-year quarter due primarily to unfavorable foreign exchange.
 ITT's Manufactured Products Group, comprised of ITT Automotive, ITT Defense & Electronics and ITT Fluid Technology all performed above last year's quarter.
 Operating income at ITT Automotive improved modestly reflecting the benefits of ongoing cost reduction programs and increased penetration of the company's anti-lock brake systems in North America. These benefits were largely offset by lower volume in the European product lines and an unfavorable foreign exchange impact. Despite lower sales, ITT Defense & Electronics' results rose dramatically in the quarter reflecting improved operating margins and lower costs. ITT Fluid Technology results also improved reflecting the benefits of continuing cost- improvement actions.
 Operating results at ITT Rayonier were below last year's third quarter due to the absence of timberland sales in 1992 as well as lower pulp selling prices in 1993.
 ITT Sheraton continued to achieve improved results, particularly among the North American company-owned hotels. System-wide occupancy levels rose to greater than 70 percent for the quarter.
 "Our businesses continue to improve in line with our expectations," Araskog said. "Our review of headquarters activities and expenses throughout the ITT system in an effort to insure that our businesses are as effective and productive as they can be has produced significant process improvements which, when fully implemented, will generate an annual expense saving of approximately $150 million, or 75 cents per share," Araskog said.
 CONTACT: Jim Gallagher of ITT Corporation, 212-258-1261
 -0- 10/22/93
 /CONTACT: Jerry Jusco, 313-340-3443, or Val Brown, 313-340-3680, both of ITT Automotive/

CO: ITT Automotive; ITT Corporation ST: Michigan, New York IN: AUT SU: ERN

SB -- DE010 -- 5693 10/22/93 11:39 EDT
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Publication:PR Newswire
Date:Oct 22, 1993

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