NEW YORK (AP) _ ITT Industries Inc. said Friday it will lay off 3,400 employees, or 8 percent of its worldwide work force, because of slack demand for the electronic components it makes for telecommunications, aerospace and other industries.

The White Plains-based manufacturer of electronics, pumps and defense equipment said it would take an after-tax charge of $65 million, or 72 cents per share in the fourth quarter, relating to the layoffs and the consolidation of some production facilities

However, the company said that charge will be largely offset by gains of $60 million, or 66 cents per share, from discontinued operations.

The company said net profit in 2001 will be between $3.01 and $3.05. Excluding one-time charges and gains, ITT predicted full-year operating earnings of between $3.07 and $3.11, in line with the $3.09 per share expected by Wall Street analysts surveyed by Thomson Financial/First Call.

ITT chairman and chief executive Lou Giuliano said in a statement that he expects weakness in the global economy in 2002 to impact all the markets the company serves.

``As we did in 2001, we are aggressively preparing for these conditions, and have plans in place to continue growing earnings and cash flow in a difficult environment,'' Giuliano said.

Giuliano said he expects revenues in 2002 to be flat, or slightly lower, compared with 2001 because of weakness in its electronics and specialty products unit, which makes automotive tubing and materials used in whirlpools and spas.

ITT spokesman Tom Glover said the company has already decided upon 800 layoffs and that the remainder would be made in 2002. Glover would not say at which plants ITT would make the cuts.

Shares of ITT fell 89 cents to close at $49 in trading on the New York Stock Exchange.


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