ITT Industries' Board of Directors Approves Stock Repurchase Program
29 July 1998
ITT Industries' Board of Directors Approves Stock Repurchase Program of $1.1 Billion
Move is part of repositioning for higher profitability, growth, predictability
WHITE PLAINS, N.Y., July 29 -- ITT Industries, Inc.
today announced that its Board of Directors has formally
authorized a stock repurchase program of $1.1 billion to begin immediately.
The company said that this is the first step to re-deploy the $2.6 billion in
after-tax cash proceeds expected from the recently announced agreements to
sell the company's automotive Electrical Systems and Brake and Chassis
businesses.
"Now that we have successfully completed the strategic review of our
automotive group, we intend to re-deploy these proceeds quickly and
efficiently to enhance shareholder value," said Travis Engen, chairman,
president and chief executive of ITT Industries. "With the confidence that we
have for our growth opportunities in 1999 and beyond, we view our stock as an
especially attractive investment."
Engen said the stock repurchase program is part of ITT Industries'
continuing transformation into a more profitable, higher growth, more
financially flexible and predictable investment. The remaining proceeds will
be used to accelerate the company's growth in its core businesses of fluid
technology, defense, electrical connectors and automotive components, and to
strengthen its financial position through debt reduction.
"We have in place a program to identify acquisition opportunities that fit
within our core industries and meet our stringent criteria," Engen said. "We
will consider only acquisitions that offer strong opportunity to add economic
value and possess solid growth characteristics."
Engen said that the completion of the stock repurchase program is
contingent upon the receipt of all proceeds from the divestitures of both
automotive units. The sale of both the Electrical Systems unit and the Brake
and Chassis unit are expected to close either late in the third quarter or
early in the fourth quarter.
At the close of business on July 28, 1998, there were approximately
118.45 million shares issued and outstanding, and the closing price on the New
York Stock Exchange was $32.50 per share. Shares repurchased through open
market and other transactions will be held in the treasury for general
corporate purposes.
ITT Industries (http://www.ittind.com) is a leading worldwide diversified
manufacturing company, with 1997 sales of $8.8 billion from its three primary
business segments: automotive, defense & electronics, and fluid technology.
ITT Industries, through its automotive unit, is one of the largest independent
suppliers of systems and components to automotive manufacturers. In the area
of defense and electronics, ITT Industries is a leader in the design,
manufacture and support of high technology electronic systems and components
for defense and commercial markets. In fluid technology, ITT Industries is the
world's largest pump manufacturer, and a leading producer of products, systems
and services for the movement and control of fluids. Based in White Plains,
New York, ITT Industries employs more than 58,000 people around the world.
In addition to the New York Stock Exchange, ITT Industries' stock is
traded under the symbol ("IIN") on the Midwest, Pacific, London, Frankfurt and
Paris exchanges.
Certain material presented herein consists of forward-looking statements
which involve known and unknown risks, uncertainties and other important
factors that could cause actual results to differ materially from those
expressed in or implied from such forward-looking statements. Such factors
include those set forth in Item 1. Business and Item 7. Management's
Discussion and Analysis of Financial Condition and Results of Operations -
Forward-Looking Statements in the ITT Industries, Inc. Form 10-K Annual Report
for the fiscal year ended December 31, 1997, and other of its filings with the
Securities and Exchange Commission.
ITT Industries' and its subsidiaries' news releases are available at no
charge via fax and the Internet. For ITT Industries news and information on
the Internet, visit http://www.ittind.com. To receive releases by fax, call
800-758-5804, extension 110006.