Full-year results rise at Xylem
By Helen Wright09 February 2015
Pump manufacturer Xylem reported revenues of US$3.92 billion (€3.46 billion) for 2014, representing a year-on-year organic increase of 3%. Net income stood at US$337 million (€298 million), compared to US$228 million (€201 million) in 2013.
“Xylem delivered strong results in the fourth quarter, closing out 2014 with a clear strategic focus, stronger execution and a renewed drive in research and innovation,” said president and CEO Patrick Decker.
“We generated growth in each of our key regions in the fourth quarter, with notably strong results in China and the emerging markets in general. Solid growth in the US and more effective execution across the company helped us to mitigate slower growth in Europe.
“During 2015, we will continue to strengthen critical organisation capabilities in the areas of commercial excellence, innovation and technology, and emerging markets in order to accelerate Xylem’s growth.
“Our commitment to building a continuous improvement culture across the organisation will drive efficiencies and enable us to continue to expand margins and reinvest for growth in our business.
"Our core fundamentals are strong and our 2015 plan tracks well with our long-term commitments to grow the company and our shareholders’ return.”
The manufacturer forecast full-year 2015 revenue of around US$3.7 billion (€3.3 billion), a decrease of 5% to 7% over the 2014 results, while net income was expected to decline between 1% and 6% to be in the range of US$480 million (€424 million) to US$505 million (€456 million).
Xylem said this forecast included the expected unfavourable impact of foreign exchange translation. However, excluding these effects, it said its revenue growth was expected to be in the range of 1% to 3% for 2015, while it said the earnings outlook reflected projected restructuring and realignment costs of US$20 million (€18 million) for the year.