ITT Wins US Army Contract - Analyst Blog

ITT Corporation (ITT) has received a contract to supply its AN/AVS-6(V) 3 aviator night vision goggle and spare image intensifier tubes to the US Army. The contract has been awarded by the U.S. Army Research, Development & Engineering Command.

 

The order, valued at $19.9 million, also includes ITT’s night vision technology, the MX-10160C. This is the company’s Generation 3 Pinnacle image intensifier, providing the soldiers with clear and sharp night vision. The MX-10160C is in production and the company has increased its capacity to meet the demand.

 

The MX-10160C image tubes help the night vision devices to detect the present light with 10 times more power than the previous image tubes. These image intensifying tubes are specially designed for aviation goggles and special tasks of the ground soldiers.

 

The company plays an important role in vital markets, including water and fluids management, global defense and security, and motion and flow control. It possesses industry-leading brands in its Fluid Technology and Motion & Flow Control businesses. The company is well diversified and serves attractive end markets with a broad geographic footprint.

 

On the defense side, the company has successfully grown over 25% or $1.5 billion of defense revenue outside the U.S. armed services budget. So the company continues to make progress with important customers, such as NASA, FAA, Department of Homeland Security and numerous international customers.

 

However, macroeconomic and business conditions, particularly in the local economies of the countries or regions in which the company sells its products, may significantly and negatively impact its revenues, profitability and results of operations.

 

The company develops proprietary technology in industries in which it operates, and relies on intellectual property laws and a number of patents to protect such technology. In doing so, it incurs ongoing costs to enforce and defend its intellectual property. An inability to protect intellectual property could hurt its business. In addition, third parties

may claim that it infringes on their intellectual property, and it could suffer significant litigation or licensing expense as a result.

 

Headquartered in New York City, ITT Corporation is a global multi-industry leader in high-technology engineering and manufacturing services. It is engaged in the design, manufacture, and sale of a wide range of engineered products and services for three vital markets: water and fluids management, global defense and security, and motion and flow control. Major competitors of ITT are Emerson Electric Company (EMR), Electric Company (GE), Flowserve Corp. (FLS) and Honeywell International

Inc. (HON).

 

We currently maintain our Neutral rating on ITT Corporation with a Zacks #3 Rank over the next one-to-three months.