ITT posts sharp drop in 3Q profit, hurt by charge

WHITE PLAINS, N.Y. (AP) — ITT Corp. reported a steep decline in third-quarter profit Friday as a charge related to potential asbestos litigation weighed down results. But the defense contractor lifted its 2009 earnings forecast.

Net income slid to $59 million, or 32 cents per share, from $216.3 million, or $1.17 per share, during the year-earlier period.

Profit from continuing operations fell to $66 million, or 36 cents per share, from $204.5 million, or $1.11 per share.

The latest results include a charge of $131 million, or 71 cents per share, for legal claims linked to certain ITT products, primarily pumps sold before 1985 that include gaskets and packing allegedly containing asbestos and made by other companies.

Revenue fell 6 percent to $2.7 billion from $2.88 billion.

The company lifted and narrowed its 2009 earnings forecast range to $3.70 to $3.74 per share from a prior projection of $3.50 to $3.70 per share. It reiterated its forecast for 2009 revenue of $10.9 billion to $11.0 billion.

ITT shares slid $3.30, or 6.1 percent, to $51.06 in morning trading. The stock has ranged from $31.94 to $56.95 over the past year.