ITT Bags Doha Contract - Analyst Blog

ITT Corporation (ITT) announced that it has been awarded a $32 million contract by Larsen & Toubro (L&T) for the Phase II extension of Qatar’s Doha South Sewage Treatment Works. The contract covers the design and supply of an additional eight ITT’s Sanitaire® sequence batch reactors (SBRs), which will increase the wastewater treatment capacity of the Doha South plant by 92 million litres per day. Also included in the Phase II extension is the addition of an ultra-filtration plant designed and supplied by ITT, which will produce a high standard of treated effluent suitable for reuse in irrigation.

With Phase I already in operation and upon the completion of Phase II, the plant will have a total capacity to treat 187 million litres of wastewater per day. This will be the largest wastewater treatment facility using SBRs combined with ultra-filtration in the Gulf Cooperation Council (GCC) region.

ITT will be providing the process engineering for the entire project to Engineering, Procurement and Construction (EPC) Contractor L&T.

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 the Fluid Technology and Motion & Flow Control businesses. The company is well diversified and serves attractive end markets with a broad geographic footprint.

We are particularly bullish about these two segments: a) water equipment (primarily pumps), which should benefit from the replacement and upgrading of ageing networks in developed markets and the build out of infrastructure in emerging markets, and b) ITT ’s Defense business, with the bulk of sales derived from electronic and network-centric warfare.

ITT Corporation , with 2009 sales and revenues of $10.9 billion, is a global multi-industry leader in high-technology engineering and manufacturing. It is engaged in the design, manufacture, and sale of a wide-range of engineered products. The company is headquartered in New York City and employs approximately 40,000 people worldwide.

We currently have a Neutral recommendation on ITT.