UPDATE 3-ITT says commercial units to aid 2011 profit

* Commercial revenue seen rising as defense declines

* Lower sales of tactical radios, jammers to hurt defense

* Shares up 1.5 pct
(Adds share rise, executive comments)

ATLANTA, Dec 17 (BestGrowthStock) – Diversified manufacturer ITT
Corp (ITT.N: ) forecast 2011 earnings mostly above Wall Street
estimates, saying rising sales in its commercial businesses
would offset a decline in defense.

The maker of water pumps and night vision goggles for
defense expects a 2011 profit of $4.62 to $4.82 a share, it
said on Friday. Its shares rose more than 1 percent.

ITT also stood by a prior forecast calling for profit of
$4.28 to $4.32 per share, excluding items, for this year.

Analysts currently expect earnings of $4.62 a share for
2011 and $4.31 for this year, according to Thomson Reuters
I/B/E/S.

The company expects revenue to increase 3 percent to 5
percent next year from about $11 billion anticipated for 2010.

“We are expecting to see a recovering global economy,
albeit somewhat slower in Europe and North America, but with
robust opportunities in the emerging markets,” Chairman Steve
Loranger told analysts during a conference call.

The company said recovering aerospace and industrial
markets would aid its two smallest business units as tougher
conditions for defense spending challenge its largest segment.

ITT also said it expected lower costs next year because of
restructurings and better productivity. It plans to continue to
pursue acquisitions to enhance its capabilities in areas such
as air traffic management and cybersecurity.

Revenue is likely to rise about 12 percent next year in
fluid technology, which supplies wastewater pumps, and about 7
percent in the motion and flow control business, which serves
rail and aerospace markets, ITT said. It expects operating
profit for both units to increase.

But the company forecast a revenue decline of about 2
percent for the defense and information systems segment on
weakness in U.S. tactical radios and devices that detect
explosives. ITT expects operating income for the segment, which
accounts for more than 50 percent of its total sales, to fall 3
percent.

ITT shares were up 1.5 percent at $51.63 in morning
trading.
(Reporting by Karen Jacobs; Editing by Lisa Von Ahn)

UPDATE 3-ITT says commercial units to aid 2011 profit