ITT Industries, Inc., is a global multi-industry company engaged directly and
through its subsidiaries in the design and manufacture of a wide range of engineered
products and the provision of related services. Our four principal business segments
are Fluid Technology, Defense Electronics & Services, Motion & Flow Control,
and Electronic Components. Prior to January 1, 2002 these segments were named
Pumps & Complementary Products, Defense Products & Services, Specialty
Products and Connectors & Switches. Also prior to January 1, 2002, Engineered
Process Solutions Group (formerly named Engineered Values) and now part of our
Fluid Technology Segment, reported into Specialty Products (now, Motion &
Flow Control). Material herein is presented on a basis consistent with those business
segment changes.
The Fluid Technology segment is affected by strong competition, changing economic
conditions, industry overcapacity that leads to intense pricing pressures, and
public bidding in some markets. Management of Fluid Technology responds to competitive
pressures by utilizing strong distribution networks, strong brand names, broad
product lines focused on market niches, a global customer base, a continuous
stream of new products developed from a strong technology base, a focus on quality
and customer service, and through continuous
cost improvement programs and life cycle cost initiatives.
In Defense Electronics & Services, business consolidations continue to
change the competitive environment. We have adjusted to these changes by focusing
on the defense electronics and services markets, by making process improvements,
and through capacity rationalization. In most of the markets served by Defense
Electronics & Services, competition is based primarily upon price, quality,
technological expertise, cycle time, and service.
In Motion & Flow Control, competition is a significant factor which has
resulted in increased pressure to reduce prices and, therefore, costs. Product
capability, quality, engineering support, and experience are also important
competitive factors.
In Electronic Components, competitive pressures continue on a global basis.
In most of the markets served, competition is based primarily upon price, quality,
technical expertise, and customer service.