For the first quarter of 2021, Xylem, global water technology company and pump manufacturer, posted revenues of $1.123 million compared to $1.237 billion in the first quarter of 2020, a 9.2-percent decline. Organically the decrease was 8 percent largely driven by the impact of COVID-19. Orders were down 4 percent on a reported basis and 2 percent organically and were net positive excluding estimated impacts of COVID-19.
Reported operating margin in the quarter was 5.4 percent, down 340 basis points, and adjusted operating margin was 6.2 percent, down 460 basis points.
“From the time COVID-19 emerged, we have been supporting our customers as they deliver essential water and sanitation services at the heart of disease prevention and control,” said Patrick Decker, Xylem’s president and CEO. “Around the world, our team has done an outstanding job shoring up our supply chain to ensure the continuity of essential services in their communities.
“We are serving utilities’ mission-critical applications from a position of financial strength and have maintained robust liquidity while also taking early action to reduce spending. Now, we are re-shaping our cost profile and re-focusing our investments on the capabilities that will maximize our and our customers’ resilience as we emerge from this pandemic. These actions will enhance our competitiveness, and further differentiate our portfolio of products and solutions, positioning Xylem to out-perform over the medium and long term."
Xylem’s Water Infrastructure segment consists of its portfolio of businesses serving wastewater transport and treatment, clean water delivery, and dewatering. First quarter 2020 revenue was $438 million, down 7 percent organically compared with first quarter 2019. Double-digit organic decline in the Industrial end-market was affected by COVID-19 impacts and dewatering sales and rental into construction and oil and gas applications.
First quarter reported operating income for the segment was $39 million. Adjusted operating income for the segment, which excludes $5 million of restructuring and realignment costs, was $44 million. Reported operating margin for the segment was 8.9 percent, down 170 basis points versus prior year. Adjusted operating margins of 10.0 percent were down 240 basis points versus prior year from inflation, unfavorable mix and volume declines partially offset by strong productivity and modest price realization.
Xylem’s Applied Water segment consists of its portfolio of businesses in industrial, commercial building, and residential applications. First quarter 2020 Applied Water revenue was $338 million, a 10-percent decline organically year-over-year, driven by market softness. There were declines in all major geographic regions, with double-digit declines in emerging markets and Western Europe.
First quarter reported operating income for the segment was $47 million and adjusted operating income, which excludes $2 million of restructuring and realignment costs, was $49 million. The segment’s reported operating margin was 13.9 percent, down 90 basis points versus prior year, and adjusted operating margin was 14.5 percent, down 110 basis points versus prior year. Margin contraction was driven by inflation as well as volume decline from COVID-19 partially offset by strong productivity.
Xylem is based in Rye Brook, N.Y.
