ITT <ITT> CONSIDERING STOCK REPURCHASE
ITT Corp Chairman Rand Araskog told a
meeting of analysts that the company has been considering a
repurchase of some shares.
    "We are considering that as a very important way to
increase earnings per share," Araskog said and noted the aim
was not to boost ITT's stock short term in the market.
    ITT recently reported that its 1986 earnings from
operations rose to 3.45 dlrs per share from 1.80 dlrs per share
a year ago.
    Araskog said its preferred issues were among the shares
being studied for repurchase.
    "We look forward to a strong 1987 and a stronger 1988,"
Araskog told the analysts. "We have more confidence...than any
other time in our history - at least with me."
    Araskog took over as chairman of ITT in 1979 and since then
has sold many of the diversified businesses that were acquired
by former chairman Harold Geneen in the 1960s and 1970s.
   Last year, the company transferred its European
telecommunications businesses into a joint venture with Cie
Generale d'Electricite, called Alcatel N.V.
    ITT retained a 37 pct interest in the venture.
    Although the agreement was closed by the end of the year,
Araskog said the final transfers of stock of a number of small
companies was recently concluded.
    "We really wrapped everything up," he said adding that the
company had received an additional 113 mln dlrs from the stock
transfers.
    Araskog said the company received all the cash due from the
Alcatel venture except for 400 mln dlrs in intercompany
receiveables, which should be paid by the end of March.
    Araskog had told analysts last July that the company was
considering repurchasing some shares, but a spokesman noted
that ITT found it difficult to undertake the program because of
the sharp appreciation in its stock price.
   
    Breaking out operating earnings by divisions, ITT said
diversified services, which consists of insurance, financial
services, communications and hotels, saw the sharpest rise in
operating income, to 454 mln dlrs, from 297 mln dlrs a year
ago.
    Industrial and defense operating income declined 48 mln
dlrs, to 315 mln dlrs, while natural resources increased 10 mln
dlrs, to 73 mln dlrs, the company said.
   
 Reuter
