Xylem Inc., a leading global water technology company, reported third-quarter 2013 net income of $73 million, or $0.39 per share. Adjusted net income was $92 million, or $0.49 per share, excluding the impact of restructuring and realignment charges, as well as special charges. Third-quarter revenue was $965 million, up $34 million or 4 percent from third-quarter 2012 on a constant currency basis, reflecting strong performance in emerging markets and better-than-expected activity in Europe. Third-quarter 2013 adjusted operating margins were 13.5 percent, up 60 basis points over last year.
“We are pleased with the pickup in sales activity, and we’re encouraged by the immediate impact of operating improvements and cost-control initiatives that are reflected in third-quarter bottom-line growth,” said Steve Loranger, CEO and president of Xylem. “Emerging markets, particularly China with its continued investment in infrastructure, are driving organic revenue growth. Higher sales in northern and central Europe more than offset continued weakness in southern Europe in the quarter.”
Loranger said the business is seeing improved order activity, with third-quarter orders up 6 percent organically, including some notable wins, such as a large ozone project in China and a comprehensive pumping and control system for the Singapore Transport Authority’s Downtown Line Mass Rapid Transit project. New products introduced in the quarter include laboratory and water analytical instruments and a more energy-efficient stainless-steel pump for industrial applications.
“Our third-quarter performance and ongoing cash generation are strong signs that we are regaining traction,” Loranger said. “They give us a solid base from which to execute our strategy and deliver improved operating performance in 2014 and beyond.”
Loranger said that due to stronger third-quarter performance, the impact of ongoing cost reductions, modestly improving market conditions and better visibility through year end, the company is raising its full-year 2013 earnings forecast to a range of $1.60 to $1.65 per share on projected revenue of approximately $3.8 billion.
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.