US-based pump manufacturer Xylem has pinpointed the industrial sector as its weak-link over the past 12 months, resulting in a marginal decrease in its revenues by 1%.
The company recorded revenues of US$ 897 million for the third quarter of 2016, which was driven by the public utility end market.
Xylem also saw its income fall some 15% year-on-year to US$ 73 million for the third quarter of 2016.
Patrick Decker, Xylem president and CEO, remained positive despite the dip in its results, claiming the company has still achieved positive results during tough market conditions.
He said, “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.
“We continued to capitalise on a strong public utility end market, where we grew 10% globally and 25% in the US 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.”
He added that the company was accelerating certain restructuring actions to mitigate the weaker industrial sector, and to enable Xylem to continue to drive margin expansion.
He said the company’s productivity and business simplification initiatives would be key contributors as Xylem continued to invest for stronger growth in the marketplace, while further expanding operating margins to enhance the company’s long-term earnings growth.
Xylem has increased its forecast for 2016, with estimated revenues of US$ 3.8 million expected. The company said the increase would be boosted by a 5% growth from its recent acquisitions, including its recent US$ 1.7 billion deal to acquire network technologies and advanced data specialist Sensus.
The company added that it expected to record a net income somewhere between US$ 509 million and US$ 513 million for 2016.