ITT Inc.

Source: Wikipedia, the free encyclopedia.
ITT Inc.
Decrease US$468.0 million (2022)[1]
Increase US$367.0 million (2022)[1]
Total assetsIncrease US$1.8368 billion (2022)[1]
Total equityIncrease US$2.248 billion (2022)[1]
Number of employees
>10,000 (2022)[1]
DivisionsITT Interconnect Solutions
Websitewww.ITT.com

ITT Inc., formerly ITT Corporation,

manufacturing company based in Stamford, Connecticut. The company produces specialty components for the aerospace, transportation, energy and industrial markets. ITT's three businesses include Industrial Process, Motion Technologies, and Connect and Control Technologies.[3]

ITT has over 10,000 employees in more than 35 countries and serves customers in well over 100 countries. The company's long-standing brands include Goulds Pumps, Cannon connectors, KONI shock absorbers and Enidine energy absorption components.[4]

The company was founded in 1920 as International Telephone & Telegraph. During the 1960s and 1970s, under the leadership of

CEO Harold Geneen, the company rose to prominence as the archetypal conglomerate
, deriving its growth from hundreds of acquisitions in diversified industries.

ITT divested its telecommunications assets in 1986. In 1995, the company sold off its hospitality portfolio, including Sheraton Hotels and Resorts. In 1996, the current company was founded as a spinoff of ITT as ITT Industries, Inc. It later changed its name to ITT Corporation in 2006.

In 2011, ITT spun off its defense businesses into a company named

L3Harris Technologies), and its water technology business into a company named Xylem Inc.[5][6] ITT Corporation changed its name to ITT Inc. in 2016.[2]

History

Beginnings and early acquisitions

The brokers Colonel

which?
] of European telephone companies.

In 1925, ITT purchased several companies from

later purchased STC.

In the 1930s, ITT purchased German electronic companies Standard Elektrizitätsgesellschaft (SEG) and

conglomerate, which operated a subsidiary, Associated Telephone and Telegraph, with manufacturing plants in Europe.

In the United States, ITT acquired the various companies of the

.

75 Broad Street, Manhattan, former headquarters of ITT
Detail of door

German subsidiaries in the Nazi period

On August 3, 1933,

]

In his book Wall Street and the Rise of Hitler, Antony C. Sutton claims that ITT subsidiaries made cash payments to SS-leader Heinrich Himmler. ITT, through its subsidiary C. Lorenz AG, owned 25% of Focke-Wulf, the German aircraft-manufacturer, builder of some of the most successful Luftwaffe fighter-aircraft. In the 1960s, ITT Corporation won $27 million in compensation for damage inflicted on its share of the Focke-Wulf plant by Allied bombing during World War II.[10] In addition, Sutton's book uncovers that ITT owned shares of Signalbau AG, Dr. Erich F. Huth (Signalbau Huth), which produced for the German Wehrmacht radar equipment and transceivers in Berlin, Hanover (later Telefunken factory), and other places. While ITT - Focke-Wulf planes were bombing Allied ships and ITT lines were passing information to German submarines, ITT direction-finders were saving other ships from torpedoes.[14] The payments to Himmler were noted in a 1946 banking investigation report by the Office of Military Government, United States.[15]

In 1943, ITT became the largest shareholder of Focke-Wulf Flugzeugbau GmbH with 29%, and remained so for the duration of the war. This was due to

OMGUS documents reveal that the role of the HAG conglomerate could not be determined during WWII.[16]

Post-war acquisitions

In 1951, ITT purchased

Federal Telephone and Radio Corporation
into ITT Kellogg and combining manufacturing operations the name again changed to ITT Telecommunications, eventually reverting to ITT Kellogg.

One prominent subsidiary of this was the American Cable and Radio Corporation, which operated the transatlantic cables of the Commercial Cable Company, among other ventures. It bought Philadelphia-based heating and air-conditioning manufacturer John J. Nesbitt Inc. In 1968, the company purchased Levittown homebuilder Levitt & Sons for a reported $90 million.

In 1972 the KONI Group,[18] manufacturer of shock absorbers was added to the list of ITT's acquisitions.

International telecommunications

International telecommunications manufacturing subsidiaries included

LM Ericsson
company in Sweden, but sold out in 1960.

Alec Reeves, an ITT employee in France in the 1930s, developed pulse-code modulation (PCM) innovations, upon which future digital voice-communication was based. Charles K. Kao, working at STC in the UK, pioneered the use of optical fiber from 1966, for which he was awarded the 2009 Nobel Prize in Physics.

Harold Geneen appointment

In 1959,

Avis Rent-a-Car. ITT also absorbed smaller operations in auto parts, energy, books, semiconductors, and cosmetics. In 1966, ITT acquired Educational Services, Inc., an operator of for-profit schools, which became ITT/ESI. When ITT attempted to acquire The Hartford insurance company in 1970, the US Justice Department filed suit, and ITT agreed to divest assets equal to those of Hartford's, including Avis.[19]

ITT's sales grew from about $700 million in 1960 to about $8 billion in 1970, and its profit from $29 million to $550 million. However, when increased interest rates started eating away at profits in the late 1960s, ITT's growth slowed considerably.

In the late 1960s, the British electronics manufacturer Kolster-Brandes Limited, KB for short, had run into trouble with its color television manufacturing, and turned to ITT for help; ITT bought out the company, and for a while, UK products were badged "ITT KB" then eventually just ITT. By the late 1970s, ITT had a good presence on the UK domestic electrical market in television, audio and portable radio products.

Brazilian expropriation in 1962

In February 1962, during the presidency of João Goulart, the State Governor of Rio Grande do Sul Leonel Brizola decided to expropriate a Brazilian subsidiary of ITT, the Companhia Telefônica Nacional. During the next years of Goulart's presidency, the expropriation was one of the most debated Brazilian political issues. The action from the State Governor to expropriate the company was never supported by the Brazilian president at the time and had severe implications for Brazil–United States relations. Some historians even say that the expropriation was one of the reasons for the federal government of the United States supporting the 1964 Brazilian coup d'état.[20]

1972 Republican National Convention

ITT became enmeshed in scandal in connection with the 1972 Republican National Convention. In May 1971, ITT president Geneen pledged $400,000 to support a proposal to hold the convention in San Diego; only $100,000 of the contribution was publicly disclosed. The Republican National Committee selected San Diego as the site in July 1971.

However, on February 29, 1972, newspaper columnist Jack Anderson disclosed an interoffice memo from ITT lobbyist Dita Beard to ITT vice president Bill Merriam, dated June 25, 1971. The memo appeared to draw a connection between ITT's contribution to the convention and the favorable settlement of a United States Department of Justice Antitrust Division lawsuit. The resulting scandal, including a Senate investigation and the threat of criminal charges, caused ITT to withdraw its support for the San Diego convention. That combined with a shortage of hotel space and problems with the proposed venue led the RNC to move the convention to Miami.[21] Special prosecutor Leon Jaworski investigated the case but ultimately concluded there was no evidence of criminal conduct by ITT.[22]

Nixon aides such as John Dean and Jeb Stuart Magruder have alleged that the Watergate break-in was motivated by the Committee for the Re-Election of the President's suspicion that the Democratic National Committee was making similar deals to fund its 1972 convention. This theory is supported by conversations and exchanges between President Richard Nixon and his chief of staff H. R. Haldeman before and after the break-in, as well as by testimony by E. Howard Hunt. However, this theory has also been disputed by others involved in the break-in such as G. Gordon Liddy.[23]

Involvement in 1973 Pinochet coup in Chile

In 1970, ITT owned 70% of CTC (the Chilean Telephone Company, now

military coup.[26][27][28] On September 28, 1973, an ITT building in New York City was bombed by the Weather Underground for involvement in the coup d'état.[29][30]

Post-Geneen: Hamilton and Araskog

In March 1977, Lyman C. Hamilton was appointed CEO, and Geneen became chairman of the board. In June 1979, while Hamilton was in Asia, Geneen became aware of Hamilton's plans to divest ITT's European consumer goods business, and lobbied his fellow board members to dismiss Hamilton. In July 1979, Rand Araskog became CEO. Shortly thereafter, Araskog insisted that the board remove Geneen as Chairman, though Geneen remained on the board for four more years.[31][32]

Araskog over the next two decades dismantled much of ITT, selling most of its holdings.

Starting in 1977, ITT set out to develop an ambitious new

ITT Kellogg) in Raleigh, North Carolina undertook the conversion in the US market,[39] and although sales were announced in 1984[40] and 1985,[41] the attempt ultimately failed, in early 1986.[42][43]

ITT divested its global telecommunications product ventures, such as ITT Kellogg, to Alcatel Alsthom, a subsidiary of Compagnie Générale d'Electricité (CGE), resulting in the establishment of Alcatel N.V. (Netherlands) in 1986. This transaction positioned Alcatel N.V. as the world's second-largest telecommunications company at that time.[44][45] Subsequently, Alcatel Alsthom S.A. merged with Lucent to form Alcatel-Lucent. Initially, ITT retained a 37% ownership stake, but in March 1992, it proceeded to sell off its remaining 30%, effectively ceasing its participation in the telephone industry.[46]

ITT Educational Services, Inc. (ESI) was spun off through an IPO in 1994, with ITT as an 83% shareholder (in September 2016, ESI announced plans to close all of its 130 Technical Institutes in 38 states because their students were no longer eligible for federal aid[47]). ITT merged its long-distance division with Metromedia Long Distance in March 1989, creating Metromedia-ITT.[48] Metromedia-ITT would eventually be acquired by Long Distance Discount Services, Inc. (LDDS) in 1993. LDDS would later change its name to WorldCom in 1995.

1995 breakup

In 1995, with Araskog still at the helm, ITT split into three separate public companies:

Criminal prosecution

In March 2007, ITT Corporation became the first major defense contractor to be convicted for

People's Republic of China, and the United Kingdom.[53] They were fined US$100 million although they were also given the option of spending half of that sum on research and development of new night vision technology. The United States government will assume rights to the resulting intellectual property.[54][55]

In its investigation and subsequent ruling, the

U.S. Attorney John L. Brownlee, the company fought the investigation in order "to essentially run out the clock on the statute of limitations."[56]

Further corporate acquisitions

An agreement was reached on June 26, 2007 for ITT to acquire the privately held International Motion Control (IMC) for $395 million. The deal was closed and finalized in September 2007. An announcement was made September 14, 2010 to close the Cleveland site.

An agreement was reached September 18, 2007 for ITT to buy EDO Corporation for $1.7 billion.[57] After EDO shareholders' approval, the deal was closed and finalized on December 20, 2007.

On April 16, 2009, ITT announced it has signed a definitive agreement to acquire Laing GmbH of Germany, a privately held leading producer of energy-efficient circulator pumps primarily used in residential and commercial plumbing and heating, ventilating and air conditioning (HVAC) systems.

2011 breakup

On January 12, 2011, ITT announced a transformation to separate the remaining company into three

publicly traded independent companies.[5]
On July 14, 2011, ITT announced the names of the three companies:

Then-ITT stockholders subsequently owned shares in all three companies following the spinoff.[6]

Headquarters

In 1929, ITT's headquarters were at (75) 67 Broad Street, Manhattan, New York, New York.[58] "During World War II the building was a hub for communications with American submarines operating in the Atlantic Ocean."[59]

From 1961[60] to 1989,[61] ITT's headquarters were at 320 Park Ave., New York.[62]

1330 Sixth Avenue in Manhattan, New York City, which was ITT's corporate headquarters prior to its merger with Starwood, was originally owned by the American Broadcasting Company (ABC), which ITT attempted to acquire in 1963. After a financial downturn, ABC moved out of the building known as "Brown Rock" and sold it to a Japanese conglomerate which then in turn leased a good portion out to ITT Corporation.

In 2022, ITT's global headquarters moved out of White Plains, NY and into Harbor Point in Stamford, CT.

ITT Avionics

ITT Avionics was a division of ITT Corporation in Nutley, New Jersey. A 300-foot research tower at ITT Avionics was built in 1947 for scientists for microwave communications systems. Research at the tower had stopped in the 1970s.[63] On the morning of April 4, 1996 at 10:00 am, the tower was demolished with explosives to prepare the site for sale.

In October 1989, the Naval Air Systems Command (NAVAIR) awarded a contract to ITT Avionics for production of an Airborne Self-Protection Jammer (ASPJ), and a similar contract was issued to Westinghouse Electric Corporation. Westinghouse and ITT had worked together with the U S Government to develop the ASPJ. The contract was later terminated by the government for convenience because the ASPJ failed independent operational test and evaluation (OPEVAL) procedures.[64]

In 1991, the company won a $19.6 million contract from the United States Air Force to develop the "intraflight data link", a communications system for "tactical airborne forces".[65] In 2004, they were awarded a $24.9 million contract from the Naval Air Systems Command Weapons Division for engineering software support services provided to the Tactical Aircraft Electronic Warfare Integrated Program Team at Point Mugu, California and China Lake, California.[66]

Consumer electronics

ITT brand logo

Through their then subsidiary Schaub Elektrik Lorenz, ITT manufactured consumer products under the ITT Schaub-Lorenz brand, such as Touring radio receivers and Ideal Color television sets employing Heliochrom picture tubes.[67]

Some television models feature the Ideal-Computer cartridge system, featuring a slot suitable for housing an ultrasonic remote control (acting as front panel buttons while docked), a teletext decoder, or Tele-Match video game dedicated consoles[68] (unrelated to the "ITT Telematch Processor" console, a rebrand of the Fairchild Channel F); the Ideal-Computer system was licensed to other German producers of its time.

ITT Schaub-Lorenz was also behind the Digivision, the first television employing digital signal processing of the image.[69]

For a comparable time span, ITT had also controlled and then fully absorbed English radio and television manufacturer Kolster-Brandes.

In 1986 throughout the following year, the ITT Telecommunications division (which included Schaub-Lorenz and Kolster-Brandes) was transferred to

CGE,[70] then in 1988 the consumer electronics division was further spun off and sold to Nokia, who sold some products under the ITT Nokia brand.[71]
Nokia closed their German TV factories in 1996,[72] although their use of the ITT brand may have been discontinued earlier.

Since 2006, the ITT brand and logo are licensed to the Karcher corporation, which is not part of the ITT group.[73]

Customers and programs

Federal Aviation Administration NextGen

In 2007, ITT was awarded a $207 million initial contract by the

air transportation.[74]
ITT is responsible for overall system integration and engineering and under contract options will operate and maintain the system after deployment through September 2025. The ITT team includes its partners AT&T, Thales North America, WSI, SAIC, PricewaterhouseCoopers, Aerospace Engineering, Sunhillo, Comsearch, MCS of Tampa, Pragmatics, Washington Consulting Group, Aviation Communications and Surveillance Systems (ACSS), Sandia Aerospace and NCR Corporation.

GeoEye-1

On September 6, 2008, the ITT-built imaging payload was launched aboard the GeoEye-1 satellite to provide high-resolution

multispectral (color) resolution. GeoEye-1 can precisely locate an object to within three meters of its true location on the Earth
's surface. The satellite will also be able to collect up to 700,000 square kilometers of panchromatic imagery per day.

See also

References

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Further reading

External links

  • Official website
  • Business data for ITT Inc.:
  • Emporis.com