ITT prepares to sell most of its automotive business

Another east coast conglomerate decides the auto industry's just too tough. ITT Industries Inc. has hired Lazard Freres & Co. and Goldman Sachs & Co. to put a price tag on its automotive brakes, chassis modules and electrical systems businesses. In a statement, ITT CEO Travis Engen says ITT wants to stay in the fluid handling, fricton and shock absorber and automotive switch businesses. Those operations account for about 20% of ITT's overall automotive sales, which totaled $4.7 billion in 1997. "Proceeds from the sale would be used to finance further internal and/or external growth of core businesses, or to repurchase common stock, pay down debt or some combination of these uses," says Mr. Engen.