Business flowing at Xylem
By Helen Wright06 May 2016
Pump manufacturer Xylem has reported first quarter growth and raised its full-year outlook after seeing increases across all its regions.
Revenues for the first three months of the year were up 4% compared to the same period in 2015 to US$847 million (€741 million), while net income stood at US$66 million (€58 million), up from US$64 million (€56 million) a year ago.
The company raised its full-year outlook for adjusted earnings per share to a range of US$1.98 (€1.73) to US$2.08 (€1.82) to reflect interest savings from debt refinancing.
Xylem president and CEO Patrick Decker said, “We are off to a solid start in 2016 as our teams’ strong project execution helped accelerate our performance in mixed market conditions.
“Our top-line growth in the quarter reflects the benefits of our diversified end-market exposure. We are pleased with the continuing strength we see in the global public utility market, up 12% in the quarter, and we believe this market in the US is in the early stages of a long-term recovery.
“In the industrial end market, we were able to offset ongoing headwinds from the oil and gas and mining sectors to bring our total industrial results to flat. And our teams delivered double-digit revenue growth in India and the Middle East, driving two-percent top-line growth in our Emerging Markets.
“The fundamentals of our core business continue to improve and we are realizing the benefits of our cost savings and productivity initiatives across our businesses, enabling us to invest more in our strategic growth initiatives to drive greater shareholder value.”
Xylem reaffirmed its forecast of full-year 2016 revenue of approximately US$3.7 billion (€3.2 billion).