Xylem Inc., a leading global water technology company and owner of the Godwin and Flygt pump brands, reported third quarter 2016 net income of $73 million, or $0.41 per share, a 15-percent year-over-year decrease because of higher restructuring, realignment and acquisition-related costs. However, adjusted net income in the quarter was $97 million or $0.54 per share, a 10-percent year-over-year increase.
Third quarter revenue was $897 million, a 1-percent decline from the third quarter of 2015, and flat organically. Robust revenue growth in the public utility end market was offset by weaker conditions in the industrial sector.
“I am pleased with our team’s performance this quarter as they executed well in a mixed market environment, while successfully advancing on our capital deployment strategy as well,” said Patrick Decker, Xylem president and CEO. “We continued to capitalize on a strong public utility end market, where we grew 10 percent globally and 25 percent in the U.S. in the quarter. This growth helped offset the softness in the broader industrial sector. We continue to drive cost savings from global procurement and lean and six sigma initiatives. In addition, we are accelerating certain restructuring actions to mitigate the weaker industrial sector and enable us to drive margin expansion. Our productivity and business simplification initiatives will be key contributors as we continue to invest for stronger growth in the marketplace while further expanding operating margins to enhance our long-term earnings growth.”
Decker added that Xylem completed the acquisition of Sensus, thus expanding the company’s offerings to companies internationally, and reshaping the growth profile of Xylem as it increases its exposure to the public utility end market.
“This addition also enhances our ability to bring systems intelligence solutions to the marketplace in the water and energy industries,” added Decker.
Xylem also acquired Visenti, which provides products and services for utilities to optimize their drinking water networks, including leak detection, pressure management and water quality monitoring.
Xylem increased its forecast for full-year 2016 revenue to about $3.8 billion, with about 1.5 percent organic growth.
