| Key Figures (US$ million) | ||
|---|---|---|
| Three months ended 31.3 | ||
| 2020 | 2019 | |
| Orders | 667.6 | 738.9 |
| Of Which: | ||
| Industrial Process | 229.5 | 219.0 |
| Revenue | 663.3 | 695.5 |
| Of Which: | ||
| Industrial Process | 227.3 | 215.7 |
| Costs of Revenue | 453.9 | 476.7 |
| Gross Profit | 209.4 | 218.8 |
| General and Admin Expenses | 60.2 | 51.9 |
| Sales and Marketing Expenses | 41.6 | 40.2 |
| Research and Development Expenses | 22.7 | 23.5 |
| Operating Income | 109.3 | 90.6 |
| Total Segment Operating Income | 77.9 | 110.5 |
| Of Which: | ||
| Industrial Process | 8.9 | 22.2 |
| Net Income | 85.1 | 71.4 |
Source: ITT Q1 2020 results.
COMMENT.
ITT Inc's first quarter 2020 revenue decreased 5%, including a 2-point unfavourable impact from foreign exchange and a 2-point benefit from the 2019 acquisitions of RheinhüttePumpen and Matrix Composites. Organic revenue was also down 5%, driven by a 7% decline in transportation and a 9% drop in industrial, partially offset by 20% growth in oil and gas.
Segment operating income of US$78 million was 30% lower than a year ago, and included asset impairment charges of US$16 million and higher restructuring costs of US$2 million. Adjusted segment operating income fell 14% to US$96 million, primarily due to reduced sales volume from weaker demand, disruption in operations caused by the Covid-19 global pandemic and unfavourable foreign exchange, partially offset by savings from productivity and cost containment actions.
The Industrial Process segment delivered a 5% increase in total revenue to U$$227 million, including a 6-point benefit from the Rheinhütte acquisition and a 2-point unfavourable impact from foreign exchange. Organic revenue increased 1% driven by pump project growth within oil and gas. Revenue from the segment's shortcycle business was relatively flat as service demand in the Middle East and strength in baseline pumps was offset by continued weakness in valves.
Industrial Process's operating income decreased 60% to US$9 million due to asset impairment charges of US$16 million.
“The Covid-19 pandemic has created an unprecedented challenge uniting ITTers all around the world in their focus on our top three 2020 priorities – the health of our people, the health of our business, and the health of our financials,” said ITT CEO and president Luca Savi. “And our first-quarter results are a testimony to our focused priorities, the resilience of our diversifiedbusinesses, and the resilience of our dedicated people.”