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 NEW YORK, July 29 /PRNewswire/ -- ITT Corporation (NYSE: ITT) today announced that net income for its 1993 second quarter increased 152 percent over the 1992 second quarter with all but one of the company's eight major businesses posting significantly improved operating results.
 Net income for the second quarter ended June 30, 1993 was $267 million, or $2.02 per fully diluted share, compared to $106 million, or 75 cents per fully diluted share in the 1992 quarter. On a primary basis, net income per share for the quarter was $2.15, compared to a restated 84 cents last year.
 The earnings improvement came on sales of $5.5 billion, up from $5.4 billion in the 1992 second quarter.
 The 1993 quarter included a $13 million after-tax charge, or 10 cents per share to cover the estimated costs associated with the first phase of a restructuring program aimed at increasing the effectiveness and productivity of support staff at ITT Headquarters and the headquarters of the company's major businesses. In addition, the quarter included an after-tax provision of $50 million, or 38 cents per share representing the estimated loss on the early retirement of debt issues at ITT Financial and an after-tax gain of $63 million, or 48 cents per share on the previously announced sale of the unsecured consumer small loan business at ITT Financial.
 Capital gains in the insurance portfolios added $25 million, or 20 cents per share after taxes, as compared to $22 million, or 17 cents per share in the second quarter of 1992.
 The 1992 second quarter included a $12 million after-tax charge, or 9 cents per share, to cover costs of restructuring actions at ITT Sheraton Corporation. The 1992 quarter was further impacted by $36 million after-tax, or 27 cents per share for catastrophe losses related to the Los Angeles riots and storm damage in several areas of the country.
 Net income for the six month period was $442 million, or $3.32 per fully diluted share compared to $244 million, or $1.75 per share before the cumulative effect of two new accounting standards adopted in the 1992 period. On a primary basis, net income per share for the six months of 1993 was $3.52, compared to a restated $1.92 in the 1992 period.
 In addition to the special items, results for the 1993 six month period were affected by catastrophe losses related to winter storm "Josh" and the World Trade Center bombing of $41 million, or 32 cents per share as well as after-tax capital gains totaling $67 million, or 52 cents per share.
 The 1992 six month results also included the effects of adopting two new accounting standards (totaling $625 million or $4.71 per share) which resulted in a restated net loss of $381 million or $2.96 per fully diluted share. The 1992 period included capital gains of $106 million, or 80 cents per share.
 Seven of the company's eight businesses registered improved operating income in the 1993 second quarter.
 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.
 Operating results at ITT Hartford improved dramatically over 1992 reflecting significantly lower catastrophe losses, the absence of losses relating to its Cameron and Colby business, favorable underwriting results and higher capital gains. ITT Financial's income increased during the quarter particularly due to improved results in the commercial lending business. In order to reflect ongoing operations, the results for all periods regarding the disposed unsecured consumer small loan business have been included in Dispositions. ITT COINS would have reported slightly improved results but for adverse effects of foreign exchange.
 ITT's Manufactured Products Group comprised of ITT Automotive, ITT Defense & Electronics and ITT Fluid Technology also registered impressive gains for the quarter.
 ITT Automotive was up sharply reflecting material and overhead cost reductions. Higher volume in North America was largely offset by the downturn in car production in Europe and sales price pressure. ITT Defense and Electronics results rose dramatically due to the benefits of restructuring and cost improvement actions, and ITT Fluid Technology improved partly as a result of cost improvement actions.
 Operating results at ITT Rayonier also rose dramatically on higher prices for timber and wood products and higher contributions from the company's New Zealand operations. The improvement was partially offset by lower average pulp prices.
 ITT Sheraton turned an operating loss in last year's second quarter into a profit in this year's quarter as a result of improved operating results in the North American properties and the absence of restructuring charges in the 1992 quarter.
 "We are pleased with the operating performance of our businesses and our overall progress for the year," Rand V. Araskog, chairman, president and chief executive said. "We are confident that we will attain the goals we set for 1993, despite the anticipated softening in some of our markets during the second half of the year," Mr. Araskog concluded.
 -0- 7/29/93
 /CONTACT: Jim Gallagher of ITT Corporation, 212-258-1261/

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

TS -- NY014 -- 7124 07/29/93 08:45 EDT
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Publication:PR Newswire
Date:Jul 29, 1993

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