• Future water company will be named Xylem;
• Future defense company will be named ITT Exelis;
• ITT Corporation to retain current corporate name and ticker symbol.
Upon completion of the spinoffs, the future water company will be named Xylem and the future defense company will be named ITT Exelis. ITT's core industrial business will continue under the ITT Corporation name. "We are pleased to announce the names of these new companies, as this represents an important step forward in our transformation,” said Steve Loranger, chairman, president and chief executive officer of ITT. “The names Xylem and ITT Exelis communicate the strength and unique positioning of our future businesses. We are confident that these new businesses will emerge as leaders in their respective industries and firmly believe that ITT Corporation, Xylem and ITT Exelis are all well positioned to create value for shareholders."
Future water company will be named Xylem
Upon completion of the planned separation, the future water company will be named Xylem ('zi-lem) and will consist of the Water & Wastewater (including wastewater transport; biological, filtration and disinfection treatment and analytics), Residential & Commercial Water and Flow Control businesses. The name Xylem, derived from classical Greek, is the tissue that transports water in plants. It signifies the company's unique position in the marketplace as a leading equipment and service provider of a broad product line that addresses the full cycle of water – from collection, distribution and use to the return of water to the environment. Xylem also highlights the engineering efficiency of our water-centric business by linking it with the best water transportation of all -- that which occurs in nature.
Future defense company will be named ITT Exelis
Following completion of the planned separation, the future defense company will be named ITT Exelis (ik-'sel-ess) and will be a leader in Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) related products and systems and information and technical services, supplying military, government and commercial customers in the United States and globally. ITT Exelis is an energetic name that is derived from the word “excel,” which is rooted in “ex,” meaning “out in front” or “beyond.” The name ITT Exelis signifies the expeditionary spirit, exceptional foresight and strong commitment to proactively anticipating and adapting solutions to our customers’ most critical problems.
ITT Corporation to retain current name
Following completion of the planned separation, ITT Corporation (itt.com) will retain the current corporate name, logo and “Engineered for life” company tagline. ITT Corporation will be a global specialist in the engineering and manufacturing of critical components that provide highly customized solutions for its customers. The company will be a leader in attractive niche markets such as harsh-environment connectors, aerospace actuation and valves, friction brake pads, railway equipment and industrial process applications. The strong reputation of the ITT name and its “Engineered for life” tagline represent the company’s ongoing focus on creating an enduring impact on the world through the focused application of engineering expertise to key industries that underpin the modern way of life.
Companies intend to list on the New York Stock Exchange
As previously announced, ITT will execute tax-free spinoffs to shareholders of its water technology and services business and its Defense & Information Solutions segment. ITT shareholders will own shares in all three corporations following the completion of the transaction. ITT Corporation will continue to trade on the New York Stock Exchange, under the symbol "ITT.” Both companies intend to have their common stock listed on the New York Stock Exchange. Xylem intends to list under the symbol “XYL” and ITT Exelis intends to list under the symbol “XLS.” Until completion of the spinoffs, ITT Corporation will continue to operate with the existing segment structure and division names. Xylem and ITT Exelis plan to unveil their new logos and further information on their new brands at a later date.
Forward-Looking and Cautionary Statements
Certain material presented herein includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the separation of ITT Corporation (the “Company”) into three independent publicly-traded companies (the “companies”), the terms and the effect of the separation, the nature and impact of such a separation, capitalization of the companies, future strategic plans and other statements that describe the companies’ business strategy, outlook, objectives, plans, intentions or goals, and any discussion of future operating or financial performance. Whenever used, words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target" and other terms of similar meaning are intended to identify such forward-looking statements. Forward-looking statements are uncertain and to some extent unpredictable, and involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from those expressed or implied in, or reasonably inferred from, such forward-looking statements. Factors that could cause results to differ materially from those anticipated include, but are not limited to: economic, political and social conditions in the countries in which we conduct our businesses; changes in U.S. or International government defense budgets; decline in consumer spending; sales and revenues mix and pricing levels; availability of adequate labor, commodities, supplies and raw materials; interest and foreign currency exchange rate fluctuations and changes in local government regulations; competition, industry capacity & production rates; ability of third parties, including our commercial partners, counterparties, financial institutions and insurers, to comply with their commitments to us; our ability to borrow or to refinance our existing indebtedness and availability of liquidity sufficient to meet our needs; changes in the value of goodwill or intangible assets; our ability to achieve stated synergies or cost savings from acquisitions or divestitures; the number of personal injury claims filed against the companies or the degree of liability; uncertainties with respect to our estimation of asbestos liability exposures, third-party recoveries and net cash flow; our ability to effect restructuring and cost reduction programs and realize savings from such actions; government regulations and compliance therewith, including Dodd-Frank legislation; changes in technology; intellectual property matters; governmental investigations; potential future employee benefit plan contributions and other employment and pension matters; contingencies related to actual or alleged environmental contamination, claims and concerns; changes in generally accepted accounting principles; and other factors set forth in our Annual Report on Form 10−K for the fiscal year ended December 31, 2010 and our other filings with the Securities and Exchange Commission. In addition, there are risks and uncertainties relating to the planned tax-free spinoffs of our water related businesses and our Defense & Information Solutions segment, including the timing and certainty of the completion of those transactions, whether those transactions will result in any tax liability, the operational and financial profile of the Company or any of its businesses after giving effect to the spinoff transactions, and the ability of each business to operate as an independent entity.
David Albritton, Future Defense Company
P: 914-641-2160 / E: david.albritton[.]itt.com.
Tom Glover, Future Water Company
P: 914-304-1798 / E: tom.glover[.]itt.com.
P: 914-641-2030 / E: thomas.scalera[.]itt.com.