“Robust” utility markets help Xylem offset oil & gas decline
Global water treatment company Xylem has attributed revenue growth from the second quarter to a “robust public utility end market globally, with particular strength in the US”...
Global water treatment company Xylem has attributed revenue growth from the second quarter to a “robust public utility end market globally, with particular strength in the US”.
Second quarter revenue was $932 million, an increase of 1%, or 3% in constant currency, which includes one point of growth attributable to acquisitions.
Net income was reported at $71 million, decrease of 5% year-over-year reflecting debt refinancing costs and higher restructuring and realignment charges.
In the company’s water infrastructure segment, including wastewater transport and treatment, second quarter 2016 revenue was $566 million, up 3% over the prior year period on a reported basis and up 5% in constant currency, which includes two points of growth attributable to acquisitions.
This growth reflects continued strength in the public utility end market, which was up 15% on a global basis in the quarter and 22% in the US, the company said.
In addition, major projects in the emerging markets, particularly in India, contributed to the gains. This progress was partially offset by weakness in the industrial end market, notably the ongoing declines in oil and gas in North America and the global mining sector.
The company continues to stick to its forecast of full-year 2016 revenue of approximately $3.7 billion (read WWi story), including approximately 1% growth from completed acquisitions and the unfavorable impacts of foreign exchange.
Patrick Decker, president and CEO of Xylem, said: “With our second quarter results, we are continuing to build a compelling track record of growth that reflects a strong focus on elevating our execution and driving productivity to expand margins. We continued to capitalise on robust growth in the global public utility sector, which helped to offset softness in the industrial end market. Our teams also delivered strong performance in executing against our productivity initiatives. These results enabled us to continue to invest in key growth initiatives, which will drive our long-term performance.”