ITT Lowers 2016 Guidance; Announces Agreement To Acquire Axtone

(RTTNews) - ITT Inc. (ITT) lowered its 2016 adjusted EPS guidance primarily due to lower short-cycle volumes, lower project profitability and unfavorable foreign exchange at Industrial Process. The revised adjusted EPS guidance also reflects a higher tax rate. The company now expects adjusted EPS guidance range to be $2.20 to $2.30. The company said its organic revenue is expected to be down 9 to 10 percent, primarily due to lower short-cycle pump and project activity across all key end markets. In August, the company projected its 2016 adjusted earnings to be $2.34 to $2.46; and organic revenue to be down 7 percent to down 9 percent.

Separately, ITT Inc. announced it has signed an agreement to acquire Axtone, a manufacturer of highly engineered and customized components for railway and other harsh-environment industrial markets. The transaction represents a cash consideration of approximately $118 million.

ITT said the transaction is expected to be accretive to its earnings in the first full year after closing. Axtone is headquartered in Kanczuga, Poland, and has approximately 660 employees and six manufacturing locations.