10-K annual report · filed Feb 17, 2017

Itt Inc (ITT) FY2016 10-K Annual Report

Short answer

Itt Inc (ITT) filed its fiscal 2016 10-K annual report with the SEC on Feb 17, 2017. It reported revenue of $2.4B and net income of $186M.

  • Top risk flagged: Asbestos claims: 2011 spin-off indemnity obligations and insurer coverage exhaustion could increase net cash outflows

FY2016 key financial metrics · XBRL

Revenue
$2.4B
Net income
$186M
Operating margin
10.8%
Gross margin
31.5%
EPS (diluted)
$2.07
ROE
13.0%
Operating cash flow
$241M

Source: XBRL data from the Itt Inc (ITT) FY2016 10-K on SEC EDGAR. USD.

Itt Inc FY2016 10-K analysis

AI summary of each section, grounded in the filing text

Business Overview

  • Diversified manufacturer of engineered components and technology solutions for energy, transportation, and industrial applications
  • Four-segment portfolio: Industrial Process, Motion Technologies, Interconnect Solutions, and Control Technologies
  • 2016 emphasis on global expansion, new product development, Lean enterprise efficiencies, and targeted acquisitions
  • Approximately 9,500 employees, with 63% of sales outside the U.S. and 30% from emerging markets
  • Approximately half of manufacturing facilities located outside the U.S., supporting customer proximity and international growth

Management Discussion & Analysis

  • Revenue $2,405.4, down $80.2 or 3.2% YoY, organic revenue down 7.3%
  • Operating margin 10.8% vs 15.3%, gross margin 31.5% vs 32.6%
  • Best segment Motion Technologies: revenue $983.4, up 28.2%, margin 17.4% vs 16.5%
  • Worst segment Industrial Process: revenue $830.1, down 25.5%, margin 4.0% vs 12.7%
  • Operating cash flow $240.7, capex $111.4, dividends $44.6, buybacks $70.0, 2017 restructuring actions approximately $30 ▪ Emerging risks: oil volatility, pricing, commodities, dollar strength, asbestos costs

Risk Factors

  • Asbestos claims: 2011 spin-off indemnity obligations and insurer coverage exhaustion could increase net cash outflows
  • International exposure: 63% of 2016 sales outside the United States, including emerging markets facing political instability and repatriation restrictions
  • Supply chain: limited single-source suppliers for castings, motors, and critical components could delay deliveries
  • Customer concentration: Continental ATE generated approximately 10% of total revenue
  • Cybersecurity: phishing, ransomware, or denial-of-service attacks could disrupt operations and expose intellectual property

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