ITT Corporation Business Report up until FY ended Dec. 31, 2013

Business Highlights

Recent Years

Financial Overview

 (in million USD)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 Rate of
change (%)
Sales 2,496.9 2,227.8 12.1 -
Operating profit 183.6 151.5 21.2 -
Motion Technologies
Sales 721.8 626.2 15.3 1)

1) Motion Technologies
-Sales for FY ended Dec. 31, 2013 increased 15.3% year-on-year, due to significant gains in both OEM and aftermarket within the Friction Technologies business. The strong growth in OEM automotive brake pad volume was driven by Europe and China. Also, favorable foreign currency translation contributes sales growth.


-In March 2010, the Company announced that its Italian unit ITT Motion Technologies had been chosen to supply the front axle brake pads for the "Giulietta" by Alfa Romeo. The Company will produce approximately 300,000 brake pads per year. (From a press release on March 2, 2010)


-In January 2011, the Company announced that it plans to spin off its water-related businesses and its Defense & Information Solutions segment. Following completion of the transaction, the Company will continue to operate as an industrial company that supplies engineered solutions in the aerospace, transportation, energy and industrial markets. The transaction was completed on Oct. 31 2011.


-In September 2007, the Company announced that it completed the acquisition of International Motion Control (IMC). Buffalo, N.Y. -based IMC is a global developer of motion control products with 2006 revenues of approximately USD 200 million.


Switches Operations
-In May 2007, the Company announced that it signed a definitive agreement with Littlejohn & Co. LLC, a private equity firm based in Greenwich, Connecticut, for the sale of its Switches business.

Automotive brake & tubing and components business
-In Feb., 2006, the Company completed the sale of its automotive brake & fuel tubing and components business to Cooper-Standard Automotive for net proceeds of approximately USD 190 million including certain post-closing adjustments. The business, which is a component of the Company's Motion & Flow Control segment, manufactures steel and plastic tubing for fuel and brake lines, quick-connects.


R&D Expenditure

 (in million USD)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Overall 67.3 62.7 63.5
% of sales 2.7% 2.8% 3.0%

R&D Facilities

-In 2012, the Company's Motion Technologies will begin construction of a new R&D and production center in Wuxi, China. The facility, expected to be completed in mid-2012, will be focused on driving development of friction materials suited to performance requirements specific of the Chinese market.

Product Development

Electric Vehicle connector
-In 2011, the Company developed new J1772 Electric Vehicle connector, which was the first in the industry to receive approval from UL, the electrical safety testing and certification organization and won product of the year awards.

Investment Activities

Capital Expenditure

 (in million USD)
  FY ended Dec. 31, 2013 FY ended Dec. 31, 2012 FY ended Dec. 31, 2011
Overall 122.9 83.8 102.3
-Motion Technologies 31.7 27.1 33.3

Investment Outside USA

-In January 2011, the Company announced it is investing USD 10 million to enhance braking technology production and create an R&D center in Wuxi, Jiangsu Province, China site, which is part of its Motion Technologies business. The division produces braking and friction technologies for various categories of cars and commercial vehicles, both light and heavy. (From a press release on January 13, 2012)

-In September 2008, the Company announced the opening of a new R&D center at its Friction Technologies production facility in Barge, Italy. The facility represents an investment of EUR 7 million. (From a press release on September 2008)

-In December 2007, the Company announced the opening of the ITT Technology Center in India, the Company's first major facility to be located in that country. The center will provide engineering and product development services to help drive emerging market growth for its businesses; including Fluid Technology and Motion & Flow Control. The center is located in Vadodara, in the state of Gujarat. The Vadodara center will focus on localizing the Company's portfolio of products to meet the region's unique needs, while also assisting its global new product development teams to achieve their growth goals in emerging markets. By the end of 2007, the Company also expects to complete construction of a manufacturing and assembly plant in the Gujarat region. The facility will primarily manufacture products for its fluid technology business.