ITT Corp is undertaking an expansion of its pump manufacturing capacity as well as seek out acquisitions in light of the increased demand for shipments coming from oil and gas companies. The demand increased by half in the third quarter and this had helped drive earnings to outpace wizened estimates on the matter.
According to ITT CFO Tom Scalera through a phone interview, "Global oil and gas projects were up 50% in the quarter, so that's the real workhorse for us. We like the long-term demand drivers around oil and gas."
ITT is based out of White Plains, NY and recently raised it annual forecast for its adjusted earnings per share from USD1.97 to USD2 and from USD1.86 to USD1.92. This comes after the firm had reported a third quarter adjusted profit per share at USD0.54. The earnings exceeded analyst estimates of USD0.48 per share. Overall, sales in the quarter had risen by 16% to a value worth USD634 million.
The expansion would be made at ITT's pump factory located at Seneca Falls, NY. It also opened a USD34 million pump manufacturing facility in South Korea to address the increased demand, according to Scalera.
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