Narrowed outlook for Xylem

Global water technology and pump rental specialist Xylem has adjusted its outlook for the 2015 as it announced its second quarter financial results.

Revenue for the three months to 30 June was $920 million (€839 million), compared to $1.005 billion (€916 million) in 2014. The company said revenue was up by 1% on an organic basis. Cumulatively for the first six months of the year, the figures were $1.757 billion (€1.6 billion) and $1.911 billion (€1.74 billion) respectively.

Announcing its revised outlook, Xylem said revenues were expected to be around $3.7 billion (€3.37 billion), 6% to 7% down on 2014, with adjusted operating income between $470 million (€428 million) and $483 million (€441 million).

“Xylem again delivered solid results that met our earnings expectations, despite challenging market conditions,” said Patrick Decker, president and chief executive officer. “I’m pleased with our team’s performance in this environment, particularly their strong execution. This is an area on which we will continue to focus, as well as driving our initiatives to accelerate growth and maintaining strong cost discipline.

“While we continue to manage near-term headwinds, particularly in the industrial sector, there are signs of improving conditions in other key end-markets. In the second quarter, we delivered impressive growth in backlog that is shippable in 2016 and beyond – an encouraging indicator of growing demand. These factors contribute to an increasingly optimistic long-term outlook for our business.”

Xylem’s second quarter revenue from its Water Infrastructure business, which includes its dewatering division, was $551 million (€502 million), down from $616 million (€562 million) last year. The company described this as flat on an organic basis.