|
ITT to cut 3,425 jobs
|
 |
December 14, 2001: 11:35 a.m. ET
Defense systems company shuts 5 plants, to take $100M pretax charge.
|
NEW YORK (CNN/Money) - Defense systems manufacturer ITT Industries Inc. announced plans Friday to close five plants and cut 3,425 jobs due to a drop-off in demand for its connectors and switches.
White Plains, N.Y.-based ITT (ITT: down $1.34 to $48.55, Research, Estimates) plans to take a $100 million pretax restructuring charge, or 72 cents a share, in the fourth quarter. But a gain from discontinued operations will reduce the net impact of the restructuring to a 6-cent reduction in fourth-quarter and 2001 earnings per share.
ITT said it now expects full-year 2001 diluted EPS, before the restructuring and other items, of $3.07 to $3.11 a share. That's about in line with the First Call analysts' consensus of $3.09. Revenue is seen dropping 4 to 6 percent, the company said.
A spokesman for ITT, which employs 38,000 people worldwide, said that about 800 people have been informed of job eliminations. The rest will be told in the coming days or at the beginning of the new year, the spokesman added.
ITT said it expects the economic downturn to continue in 2002.
"Looking into 2002, we expect continued weakness in the global economy, with difficult conditions in all geographic regions and many of our served markets," ITT CEO Lou Giuliano said. "As we did in 2001, we are aggressively preparing for these conditions, and have plans in place to continue growing earnings and cash flow in a difficult environment." 
|
|
|
|
|
|
|
