International Telephone & Telegraph

ITT Inc.
Company type	Public
Industry	Manufacturing
Predecessor	International Telephone & Telegraph
Founded	1920; 106 years ago
Founder	Hernan Behn, Sosthenes Behn
Headquarters	Stamford, Connecticut, United States
Area served	Worldwide (over 100 countries)
Key people	Harold Geneen (former CEO)
Products	Advanced components for aerospace, transportation, energy, industrial sectors; brands include Goulds Pumps, Cannon connectors, KONI shock absorbers, Enidine energy absorption products
Number of employees	Over 10,000 (Not specified)

ITT Inc., previously known as ITT Corporation, is a multinational manufacturing firm based in Stamford, Connecticut, United States. The company specializes in producing advanced components serving the aerospace, transportation, energy, and industrial sectors. ITT’s operations are divided into three primary segments: Industrial Process, Motion Technologies, and Connect and Control Technologies.

Employing over 10,000 individuals worldwide and maintaining a presence in more than 35 countries, ITT caters to clients across upwards of 100 nations. Its brand portfolio features prominent names such as Goulds Pumps, Cannon connectors, KONI shock absorbers, and Enidine energy absorption products.

Established in 1920 under the name International Telephone & Telegraph, ITT experienced substantial growth during the 1960s and 1970s under CEO Harold Geneen, expanding through numerous acquisitions to become a major conglomerate.

In 1986, the company divested its telecommunications division and subsequently sold its hospitality assets, including Sheraton Hotels and Resorts, by 1995. The current corporate structure emerged in 1996 following a spinoff branded ITT Industries, Inc., which was renamed ITT Corporation in 2006.

In 2011, ITT separated its defense business into Exelis Inc. (now integrated into L3Harris Technologies) and spun off its water technology segment as Xylem Inc.. The company adopted the name ITT Inc. in 2016.

Founding and initial expansion

The origins of International Telephone & Telegraph (ITT) trace back to 1920 when brothers Hernan Behn and Colonel Sosthenes Behn established the company after acquiring the Puerto Rico Telephone Company, Cuban-American Telephone and Telegraph Company, and a fifty percent stake in the Cuban Telephone Company in 1914. ITT’s first significant expansion occurred in 1923 through consolidation of Spanish telecommunications operators, which led to the foundation of Telefónica. Between 1922 and 1925, ITT broadened its European footprint by acquiring multiple telephone companies, enhancing its international reach.

In 1925, ITT further expanded by purchasing several entities from Western Electric following Bell System’s divestiture of its overseas operations. Notable acquisitions included the Bell Telephone Manufacturing Company (BTM) in Belgium—specializing in rotary switching equipment—and British International Western Electric, later renamed Standard Telephones and Cables (STC). These subsidiaries eventually became part of Compagnie Générale d'Electricité and Nortel, respectively.

Throughout the 1930s, ITT continued its growth trajectory by acquiring German electronics manufacturers Standard Elektrizitäts-Gesellschaft (SEG) and Mix & Genest, along with Romania’s telecommunications monopoly Societatea Anonima Română de Telefoane. Its main rival during this period was Theodore Gary & Company with its subsidiary Associated Telephone and Telegraph.

In the United States, ITT expanded its holdings in 1928 by acquiring the Mackay Companies via Postal Telegraph & Cable. This acquisition included entities such as Commercial Cable Company, Commercial Pacific Cable Company, Postal Telegraph, and Federal Telegraph Company, significantly strengthening ITT’s role in transcontinental communications.

German subsidiaries during the Nazi era

On August 3, 1933, Adolf Hitler held a meeting with Sosthenes Behn, then CEO of ITT, along with Henry Mann, ITT's representative in Germany, marking one of Hitler's initial interactions with American business leaders.

In his book Wall Street and the Rise of Hitler, Antony C. Sutton claims that ITT's German subsidiaries made financial contributions to SS chief Heinrich Himmler. ITT, through its subsidiary C. Lorenz AG, controlled a 25% stake in Focke-Wulf, a prominent German aircraft manufacturer responsible for producing effective fighters for the Luftwaffe. During the 1960s, ITT obtained $27 million in reparations for damages sustained by its Focke-Wulf factory due to Allied bombings in World War II. Sutton further highlights ITT's shareholding in Signalbau AG, Dr. Erich F. Huth (Signalbau Huth), a firm manufacturing radar and radio transceivers for the German Wehrmacht in Berlin and Hanover, which later became part of Telefunken. While Focke-Wulf aircraft targeted Allied vessels, ITT's direction-finding technology was used to safeguard other ships from torpedo attacks. Documentation from a 1946 US military government banking inquiry confirms payments made to Himmler.

By 1943, ITT had become the largest shareholder in Focke-Wulf Flugzeugbau GmbH, holding 29%, overtaking Kaffee HAG’s 27% stake following the death of its leader, Dr. Ludwig Roselius. Records from OMGUS suggest that Kaffee HAG’s exact involvement during the war remains uncertain.

Post-war acquisitions

In 1951, ITT entered the television industry by acquiring Philo Farnsworth’s company. Farnsworth was also engaged in developing the Fusor fusion reactor, which ITT financed until 1967. That same year, ITT gained majority ownership of Kellogg Switchboard & Supply Company, an early innovator in telephone switchboards; it later acquired full control and rebranded it as ITT Kellogg. After merging Federal Telephone and Radio Corporation into ITT Kellogg and streamlining production facilities, the company was renamed ITT Telecommunications, before eventually returning to the ITT Kellogg name.

Among its important subsidiaries was American Cable and Radio Corporation, which operated transatlantic cables originally belonging to the Commercial Cable Company. Additionally, ITT purchased Philadelphia-based heating and air-conditioning manufacturer John J. Nesbitt Inc. In 1968, ITT acquired Levitt & Sons, a homebuilding enterprise based in Levittown, for roughly $90 million. The acquisition of KONI Group in 1972 further diversified ITT’s holdings by adding shock absorber manufacturing.

Global telecommunications operations

ITT’s international telecommunications network included subsidiaries such as Standard Telephones and Cables (operating in the UK and Australia), Indosat (Indonesia), Standard Elektrik Lorenz (Germany; now integrated into Nokia), and Intermetall Gesellschaft für Metallurgie und Elektronik mbH (purchased from Clevite in 1965; currently TDK-Micronas). Other affiliates included Bell Telephone Manufacturing Company (Belgium), CGCT, and LMT (France). These companies manufactured equipment based on ITT designs—like the Pentaconta crossbar switch and Metaconta stored program control exchanges—primarily supplying national telephone authorities. Production also took place under licensing agreements in countries such as Poland and Yugoslavia. At one time, ITT held the largest shareholding in LM Ericsson (Sweden) but divested its interest by 1960.

Significantly, an ITT engineer named Alec Reeves invented pulse-code modulation (PCM) during the 1930s, laying groundwork for digital voice transmission systems. Furthermore, Charles K. Kao at STC UK made pioneering advances in optical fiber technology beginning in 1966, which ultimately earned him the Nobel Prize in Physics in 2009.

Appointment of Harold Geneen

In 1959, Harold Geneen assumed the role of CEO and spearheaded substantial expansion through leveraged buyouts, significantly growing ITT well beyond its acquisitions from the 1950s. In 1965, ITT's $700 million bid to acquire ABC was blocked by antitrust authorities concerned about the company's increasing dominance. To circumvent such regulatory challenges, ITT broadened its scope beyond telecommunications, acquiring more than 300 firms during the 1960s. These acquisitions included Sheraton Hotels, Continental Baking (maker of Wonder Bread), Rayonier, and Avis Rent-a-Car. The company also diversified into sectors such as automotive components, energy, publishing, semiconductors, cosmetics, and for-profit education through Educational Services, Inc. (ITT/ESI). A 1970 attempt to purchase The Hartford insurance company resulted in a Justice Department lawsuit that compelled ITT to divest several assets, including Avis.

Under Geneen’s leadership strategy, ITT’s revenue increased dramatically from $700 million in 1960 to $8 billion by 1970, while net income rose from $29 million to $550 million. Nevertheless, growth slowed in the late 1960s due to higher interest rates.

In the United Kingdom, ITT acquired the ailing electronics manufacturer Kolster-Brandes Limited during the late 1960s. The company later rebranded products under the ITT name and established a significant presence in televisions, audio equipment, and radios by the end of the 1970s.

Brazilian expropriation in 1962

In February 1962, during President João Goulart’s government, Rio Grande do Sul Governor Leonel Brizola nationalized ITT’s Brazilian subsidiary, Companhia Telefônica Nacional. This politically charged seizure heightened tensions between Brazil and the United States and is viewed by some historians as an element influencing U.S. backing of the 1964 Brazilian military coup. The expropriation remained a divisive issue throughout Goulart's administration.

Controversy at the 1972 Republican National Convention

ITT became involved in a scandal surrounding the 1972 Republican National Convention. In May 1971, ITT president Geneen committed $400,000 to support San Diego as the convention location; however, only $100,000 was publicly reported. The Republican National Committee selected San Diego in July 1971.

In February 1972, columnist Jack Anderson disclosed an internal memo suggesting a connection between ITT’s financial contribution and a favorable resolution of an ongoing Department of Justice antitrust case. This revelation sparked a scandal that led to Senate inquiries and possible criminal investigations, prompting ITT to withdraw its support. Combined with logistical problems related to venues and hotels, these factors caused the RNC to move the convention to Miami. Ultimately, special prosecutor Leon Jaworski found no proof of criminal wrongdoing by ITT.

Nixon aides John Dean and Jeb Stuart Magruder proposed that the Watergate break-in was driven by concerns that the Democratic National Committee was arranging similar financial deals for its own convention in 1972. This hypothesis is supported by conversations among President Nixon and chief of staff H. R. Haldeman as well as testimony from E. Howard Hunt but remains contested by figures such as G. Gordon Liddy.

Role in Chilean coup of 1973

By 1970, ITT held a 70% stake in CTC (the Chilean Telephone Company, now Movistar Chile) along with approximately $200 million invested in Chilean assets. Under CEO Harold Geneen’s direction, ITT contributed $350,000 to Jorge Alessandri, who opposed Salvador Allende. Following Allende’s election, ITT offered $1 million to the CIA to help undermine his government; this offer was declined. Declassified CIA documents reveal that ITT financially supported groups preparing for a military coup. On September 28, 1973, an office of ITT in New York was targeted with a bombing by the Weather Underground due to the company’s involvement in the coup.

Post-Geneen Era: Leadership of Hamilton and Araskog

In March 1977, Lyman C. Hamilton assumed the role of CEO while Harold Geneen transitioned to chairman. By June 1979, Geneen discovered Hamilton's intention to sell ITT's European consumer goods division and successfully orchestrated Hamilton's removal. The following month, Rand Araskog was appointed CEO and soon advocated for Geneen’s departure from the chairman position, although Geneen remained on the board for an additional four years.

During the subsequent twenty years, Araskog systematically dismantled much of ITT by divesting a majority of its assets. Beginning in 1977, ITT allocated approximately US$1 billion to develop the System 12 digital telephone exchange, targeting a comprehensive range of telecommunications markets from local to long distance. This system was engineered at ITT’s Advanced Technology Center in Connecticut and produced by subsidiaries such as Belgium’s Bell Telephone Manufacturing Company (BTM). While initial sales in Europe and Mexico showed promise, delays in integration led to financial setbacks. Despite efforts by ITT Telecommunications based in Raleigh, North Carolina, to penetrate the U.S. market, the System 12 initiative was ultimately discontinued by early 1986.

In 1986, ITT divested its telecommunications product divisions, including ITT Kellogg, selling them to Alcatel Alsthom—a subsidiary of CGE—resulting in the formation of Alcatel N.V., which became the world’s second-largest telecommunications firm at that time. Initially retaining a 37% ownership stake, ITT fully exited the telephone manufacturing sector by selling its remaining 30% stake by 1992. Later in 2006, Alcatel Alsthom merged with Lucent Technologies to create Alcatel-Lucent.

ITT Educational Services, Inc., known for operating ITT Technical Institute, was spun off through an initial public offering in 1994 with ITT maintaining an 83% ownership. However, by 2016, ESI announced the shutdown of all its technical campuses following the loss of eligibility for federal funding. In March 1989, ITT combined its long-distance telecommunications unit with Metromedia Long Distance to form Metromedia-ITT; this entity was acquired by Long Distance Discount Services (LDDS) in 1993. LDDS subsequently rebranded as WorldCom in 1995.

The 1995 Division

In 1995, under Araskog’s direction, ITT was segmented into three publicly traded companies:

ITT Corp. – In 1997, this entity merged with Starwood Hotels and Resorts as part of Starwood’s acquisition of Sheraton Hotels and Resorts. Starwood divested ITT World Directories to VNU. By 1999, ITT had completely divested from ITT Educational Services but continued licensing the ITT Technical Institute brand until its closure in 2016. Also in 1999, ITT Corp. adopted the Starwood name.
ITT Hartford – Now operating as The Hartford Financial Services Group, Inc., it remains a prominent insurer but has dropped the ITT designation.
ITT Industries – Retaining this name until 2006, ITT Industries was a major manufacturer and defense contractor. On July 1, 2006, following shareholder approval, it rebranded itself as ITT Corporation.

Legal Conviction

In March 2007, ITT Corporation became the first leading defense contractor convicted under violations of the U.S. Arms Export Control Act. The company faced a $100 million penalty for unlawfully exporting night vision goggles and classified countermeasure technologies to engineers located in Singapore, China, and the United Kingdom. Half of this fine was permitted to be allocated toward research and development for new night vision technologies; any resulting intellectual property rights were assigned to the U.S. government.

The United States Department of Justice revealed that ITT deliberately circumvented export regulations by establishing a front company and delaying investigations until statutory limits expired. According to U.S. Attorney John L. Brownlee, the corporation consistently resisted accepting responsibility throughout the investigation process.

Additional corporate acquisitions

On June 26, 2007, ITT reached an agreement to purchase the privately owned International Motion Control (IMC) for $395 million, with the transaction concluding in September of the same year. The Cleveland facility was subsequently shut down by September 2010.

On September 18, 2007, ITT revealed its intention to acquire EDO Corporation for $1.7 billion, a deal that was finalized on December 20, 2007 following shareholder endorsement.

On April 16, 2009, ITT entered into a definitive agreement to acquire Laing GmbH, a German manufacturer specializing in energy-efficient circulator pumps for both residential and commercial plumbing and HVAC applications.

2011 corporate division

On January 12, 2011, ITT declared its plan to separate into three independent publicly traded companies as part of a strategic realignment. By July 14, 2011, the new companies were designated as follows:

The Industrial Process & Flow Control segment maintained the ITT Corporation name (which was updated to ITT Inc. in 2016).
The Water & Waste Water segment was rebranded as Xylem Inc. (NYSE: XYL).
The Defense segment became Exelis Inc. (NYSE: XLS), which Harris Corporation acquired in 2015.

Following the spin-off, ITT shareholders received shares in each of the three newly formed companies.

Corporate headquarters

In 1929, ITT’s main office was situated at 67 Broad Street in Manhattan, New York City. During World War II, this location functioned as a communications center for American submarines operating in the Atlantic Ocean.

Between 1961 and 1989, ITT’s headquarters were located at 320 Park Avenue in New York City. Subsequently, ITT occupied the building at 1330 Sixth Avenue in Manhattan—previously owned by ABC—which it leased after ABC faced financial difficulties and sold the property.

In 2022, ITT moved its global headquarters from White Plains, New York to Harbor Point in Stamford, Connecticut.

ITT Avionics

ITT Avionics, a division based in Nutley, New Jersey under ITT Corporation, operated a research tower standing 300 feet tall constructed in 1947 for microwave communication experiments. This research ceased during the 1970s, and the tower was dismantled in 1996 to facilitate sale of the property.

In October 1989, ITT Avionics secured a contract from Naval Air Systems Command (NAVAIR) to develop an Airborne Self-Protection Jammer (ASPJ), partnering with Westinghouse Electric Corporation. However, after failing independent operational test and evaluation (OPEVAL), the government terminated this contract for convenience.

In 1991, ITT Avionics received a $19.6 million contract from the U.S. Air Force to create the "intraflight data link," a communication system designed for tactical airborne units. Later on, in 2004, they were awarded a $24.9 million contract by NAVAIR Weapons Division to provide engineering software support services for the Tactical Aircraft Electronic Warfare Integrated Program Team based at Point Mugu and China Lake in California.

Consumer electronics

Through its then-subsidiary Schaub Elektrik Lorenz, ITT manufactured consumer electronics under the ITT Schaub-Lorenz brand name. Their product lineup included Touring radios and Ideal Color television sets equipped with Heliochrom picture tubes.

Certain television models featured the Ideal-Computer cartridge system that enabled use of ultrasonic remote controls, teletext decoders, or dedicated video game consoles branded as Tele-Match (not to be confused with the "ITT Telematch Processor," which was a rebranded version of Fairchild Channel F). This technology was licensed out to other German manufacturers.

Additionally, ITT Schaub-Lorenz introduced the Digivision, recognized as the first television employing digital signal processing techniques to enhance image quality.

During roughly the same era, ITT acquired English radio and television manufacturer Kolster-Brandes and integrated it into its operations.

Between 1986 and 1987, ITT’s Telecommunications division—including Schaub-Lorenz and Kolster-Brandes—was transferred to Alcatel through French conglomerate CGE. In 1988, its consumer electronics branch was spun off and sold to Nokia, which marketed some products under the ITT Nokia label. Nokia ceased operations at its German TV plants by 1996 and discontinued use of the ITT brand prior to that date.

Since 2006, Karcher corporation has licensed the ITT brand and logo independently from the original ITT group.

Federal Aviation Administration NextGen

In 2007, ITT was awarded a $207 million contract by the Federal Aviation Administration (FAA) to spearhead the creation and rollout of the Automatic Dependent Surveillance – Broadcast (ADS-B) technology. This system plays a pivotal role in the FAA's NextGen air traffic control modernization initiative, which focuses on improving safety and operational efficiency within U.S. air travel. ITT is responsible for comprehensive system integration and engineering, and through contract extensions, will also handle system operation and maintenance until September 2025. The project team comprises collaborators including AT&T, Thales North America, SAIC, PricewaterhouseCoopers, among others.

GeoEye-1

On September 6, 2008, ITT successfully delivered the imaging payload for the GeoEye-1 satellite, enabling advanced high-resolution earth observation. GeoEye-1 produces images with a panchromatic resolution of 0.41 meters and multispectral resolution of 1.65 meters, achieving geolocation precision within three meters. The satellite is capable of capturing up to 700,000 square kilometers of panchromatic imagery each day, serving defense, intelligence, and commercial sectors.

External links

Emporis.com