ITT Corp. announced a strategic realignment of its defense segment, a move designed to better align the company with the emerging needs of its expanding global customer base, which is increasingly integrated and network-centric. The realignment will enable better integration of its product portfolio, encouraging a more coordinated market approach and reduced operational redundancies.
“We are positioning ITT to support our customers' emerging technology needs, while also greatly enhancing our ability to stake out new markets,” said Steve Loranger, ITT’s Chairman, President and Chief Executive Officer. “We believe this move will also allow ITT to achieve greater operating efficiencies and optimize our cost structure, which will help drive successful business strategies for continued top-line growth.”
The company’s defense segment will be renamed ITT Defense and Information Solutions. Its current organizational structure, comprising seven separate business units, will be consolidated into three larger ones.
- The Electronic Systems and Communications Systems divisions, as well as a portion of the Intelligence & Information Warfare division, will be merged to form a more versatile Electronic Systems division, based in Clifton, NJ. This division will deliver advanced protection measures that work together to help ITT’s customers defend their networks and disable enemy networks. It will shift its focus from producing separate, point-of-use products to secure, networked communications systems and powerful sensing, surveillance and reconnaissance technologies that address the entire spectrum of electronic warfare.
- The Space Systems and Night Vision divisions will merge to form Geospatial Systems, based in Rochester, NY. The new center will focus on providing networked sensors, such as next generation imaging, including space and air sensors, image/infrared/digital sensors and air/ground/space systems, which transition the company’s capabilities from disparate image acquisition to image processing and distribution across the network.
The strategic realignment of ITT’s defense segment does not impact the company’s previously announced forecast for full-year 2010 earnings per share in the range of $3.85 to $4.05 per share.