Xylem Q213 Revenues Decline 3.4 Percent despite Stronger Orders

July 31, 2013

Xylem Inc., a global water technology company focused on addressing the world’s most challenging water issues, this week reported second-quarter 2013 net income of $46 million, or $0.25 per share. Adjusted net income was $66 million, or $0.36 per share, excluding the impact of special items that included restructuring and realignment charges, and special tax items. Second-quarter revenue was $960 million, down $6 million from the second quarter 2012. Strength in the company’s U.S. residential, commercial and agriculture business was more than offset by continued softness in Europe, as well as in the public utilities and industrial markets.

"While our second-quarter results were lower than expected, we captured important contract wins in June, resulting in record orders of more than $1 billion in the quarter,” said Gretchen McClain, president and CEO of Xylem Inc. “We continue to take strong and decisive actions to position the company for efficient operation and profitable growth. While we’re seeing the initial benefits from our on-going restructuring and organizational realignment, we are accelerating additional short- and long-term actions to further reduce our cost base and drive more efficiencies throughout our business.”

McClain said the company expects to benefit from investments in growth initiatives and from continued efforts to transform the business and improve growth execution.

“We are encouraged by our second-quarter order rate and several new products that we launched during the second quarter, including our ‘smart’ dewatering solutions from Flygt and Godwin that are efficient, compact and meet our customers’ needs for more reliable and durable technologies,” McClain said. “These new products and some key contract wins give us confidence in an improved second half of the year and position us for long-term growth.”

Xylem’s full-year revenues are now expected to be approximately $3.7 billion, and adjusted net income is expected to be in the range of $260 to $279 million, or $1.40 to $1.50 per share, down from the earlier projection of adjusted net income of $1.79 to $1.89 per share.

Headquartered in White Plains, N.Y., Xylem is a leading global water technology provider, enabling customers to transport, treat, test and efficiently use water in public utility, residential and commercial building services, industrial and agricultural settings.