ITT Industries Inc, USA

8

September 2006

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MPA

NY

WA

TC

HPump Industry Analyst

GUD Holdings has reported a32% increase in net profit aftertax for fiscal 2006 to A$40.2million compared with theA$30.4 million posted in2005. The prior year’s resultincluded an A$8.8 millionafter tax charge for restructur-ing the company’s Ryco filtra-tion business.

Sales revenue increased17.2% to A$462.4 million onthe A$394.4 million of a yearearlier, reflecting contribu-tions from acquisitions madein late fiscal 2005 and earlyfiscal 2006, as well as a recov-ery in its Victa subsidiary.

“The profit and dividendincreases are very pleasinggiven the tough trading condi-tions throughout fiscal 2006,”Ian Campbell, GUD’s manag-ing director, said. “ConsumerProducts, Water Products andAutomotive Products all gen-erated increased contributions.This is a solid result givenprice increases from suppliershave put downward pressureon our margins.”

Campbell said that higherraw material prices, particular-ly metals and plastic, andhigher freight costs had been a

challenge, especially as con-sumer sentiment had beenessentially flat in Australia.

In the group’s AutomotiveProducts division, home tomost of its filtration business,the trading EBITA figure rose1% to A$17.9 million. Profitimproved due to the success ofrestructuring in 2005 despitedifficult conditions in automo-tive aftermarkets and higherraw material prices, particular-ly tinplate steel. Campbell saidthe outsourced filtration prod-ucts selling under the Rycobrand were meeting qualityexpectations and the branchnetwork operated by Wesfilhad been further expandedwith the opening of an opera-tion in Townsville.

In the Water Productsdivision, the trading EBITAfigure rose 26% to A$14.3million. Growth in the unitwas driven by the acquisitionsof Spa Quip and Contam-ination Control and new prod-ucts in its traditional Daveypump business. The recentacquisition of Monarch PoolSystems is expected to drivecontinued growth within thedivision. ■

GUD Holdings Ltd,Australia

Key Figures (A$ million)Year ended 30.6

2006 2005

Sales Revenue 462.4 394.4 Of Which:Automotive Products 70.4 78.6Water Products 96.7 87.5

Trading EBITA* 68.2 62.8Of Which:Automotive Products 17.9 17.7Water Products 14.3 11.3

Net Profit before Tax 56.9 43.7

Net Profit after Tax 40.2 30.4

* EBITA: Earnings Before Interest, Taxes, and Amortization

COMMENT

ITT Industries Inc,USA

Key Figures (US$ million)Second quarter ended 30.6

2006 2005

Sales and Revenues 2067.9 1863.9Of Which:Fluid Technology 765.3 742.7

Cost of Sales and Revenues 1491.9 1353.0

R&D Expenses 43.7 44.6

Operating Income 226.8 198.1

Net Income 140.9 137.7

Six months ended 30.6

2006 2005

Sales and Revenues 3954.6 3629.8Of Which:Fluid Technology 1451.0 1372.8

Cost of Sales and Revenues 2875.4 2649.4

R&D Expenses 86.4 88.9

Operating Income 401.9 342.0

Net Income 296.8 254.2

ITT continues to grow itsFluid Technology business,with its second quarter 2006revenues reaching US$765.3million, up 6% on a year earli-er. Organic revenues for theperiod grew 4% on the compa-rable 2005 figure, led by theWater/Wastewater Handlingand Building Trades segments.Operating income in the FluidTechnology division wasUS$101.3 million for thequarter, including the impactof restructuring. Excludingrestructuring, the result was up9% on a year earlier.

Total orders for the FluidTechnology division for thesecond quarter were up 7%,and organic orders were up5% compared with the secondquarter of 2005.

ITT announced the acqui-sition of FB Leopold duringthe quarter, an acquisition

expected to add a valuable pre-treatment component toITT’s already wide range offiltration and treatment capabilities.

Steve Loranger, ITT’schairman, president and CEO,is expecting continued strongperformance for the divisionin the second half of the year.

“As always, we are close-ly watching the current eco-nomic climate and its potentialeffects on our business,”Loranger said.

“We believe we are partic-ularly well positioned in ourFluid Technology markets tobenefit from the growingdemand for water-relatedproducts and services,” hesaid. “We have well-estab-lished product brands, a largeinstalled base and a growingposition in developing marketslike China.” ■

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