Pentair Provides Financial Outlook for 2015; Reaffirms Full Year 2014 Outlook
December 17 2014 - 7:00AM
·
Company provides full year 2015 EPS outlook of $4.20 to $4.35
·
Reaffirms 2014 adjusted EPS outlook of $3.72 to $3.74
Reconciliations of GAAP to
Non-GAAP measures are in the attached financial tables.
MANCHESTER, United Kingdom - December 17,
2014 - Pentair plc (NYSE: PNR) today provided its outlook for 2015
and reaffirmed its fourth quarter and full year 2014 sales and
earnings outlook.
For full year 2015, the company is providing an
adjusted earnings per diluted share (EPS) outlook of $4.20 to
$4.35, which represents an increase of 13 to 17 percent from the
mid-point of the 2014 adjusted EPS outlook. The company
anticipates full year 2015 sales to be approximately $7.2 billion,
or up 2 to 4 percent on a core basis compared to estimated 2014
sales. The company expects to generate greater than $925
million in free cash flow or greater than 115% of net income in
2015.
"We had another successful year of integration and
made significant progress in expanding our operating margins,
generating strong free cash flow, and returning cash to
shareholders," said Randall J. Hogan, Chairman and Chief Executive
Officer. "While we expect modest global GDP growth next year,
we expect to deliver another year of solid margin expansion,
mid-teens adjusted EPS growth, and free cash flow well in excess of
net income."
Pentair expects fourth quarter 2014 adjusted EPS
to be in the range of $1.02 to $1.04, up approximately 20 percent
versus the same quarter last year's adjusted EPS. The company
expects full year 2014 adjusted EPS to be in the range of $3.72 to
$3.74, which represents an increase of 22 percent over 2013
adjusted EPS of $3.05.
CONFERENCE CALL
Pentair Chairman and CEO Randall J. Hogan and
Chief Financial Officer John L. Stauch will discuss the company's
outlook on a two-way conference call with investors at 9:00 a.m.
Eastern today. A live audio webcast of the call, along with the
related presentation, can be accessed in the Investors section of
the company's website, www.pentair.com, shortly before the call
begins. Reconciliations of non-GAAP financial measures are set
forth in the attachments to this release and in the presentation,
both of which can be found on Pentair's website. The webcast and
presentation will be archived at the company's website following
the conclusion of the event.
CAUTION CONCERNING
FORWARD-LOOKING STATEMENTS
This press release contains statements that we
believe to be "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical fact are
forward-looking statements. Without limitation, any statements
preceded or followed by or that include the words "targets,"
"plans," "believes," "expects," "intends," "will," "likely," "may,"
"anticipates," "estimates," "projects," "should," "would,"
"positioned," "strategy," "future" or words, phrases or terms of
similar substance or the negative thereof, are forward-looking
statements. These forward-looking statements are not guarantees of
future performance and are subject to risks, uncertainties,
assumptions and other factors, some of which are beyond our
control, which could cause actual results to differ materially from
those expressed or implied by such forward-looking statements.
These factors include the ability to successfully integrate the
Flow Control business and achieve expected benefits from such
combination; the ability to successfully complete the disposition
of our Water Transport business on anticipated terms and timetable;
overall global economic and business conditions; competition and
pricing pressures in the markets we serve; the strength of housing
and related markets; volatility in currency exchange rates and
commodity prices; inability to generate savings from excellence in
operations initiatives consisting of lean enterprise, supply
management and cash flow practices; increased risks associated with
operating foreign businesses; the ability to deliver backlog and
win future project work; failure of markets to accept new product
introductions and enhancements; the ability to successfully
identify, complete and integrate acquisitions; the impact of
changes in laws and regulations, including those that limit U.S.
tax benefits; the outcome of litigation and governmental
proceedings; the ability to achieve our long-term strategic
operating goals; and the ability to achieve the expected benefits
from our recent redomicile. Additional information concerning these
and other factors is contained in our filings with the U.S.
Securities and Exchange Commission ("SEC"), including in our 2013
Annual Report on Form 10-K. All forward-looking statements speak
only as of the date of this report. We assume no obligation, and
disclaim any obligation, to update the information contained in
this report.
ABOUT PENTAIR PLC
Pentair plc (www.pentair.com) delivers
industry-leading products, services and solutions for its
customers' diverse needs in water and other fluids, thermal
management and equipment protection. With 2013 revenues of $7.0
billion, Pentair employs approximately 30,000 people worldwide.
PENTAIR CONTACTS:
Jim Lucas
Vice President, Investor Relations
Direct: 763-656-5575
Email: jim.lucas@pentair.com
Betsy Day
Corporate Communications
Direct: 763-267-2437
Email: betsy.day@pentair.com
|
|
|
Pentair plc
and Subsidiaries |
Reconciliation of the GAAP "As Reported" year ended
December 31, 2014 to the "Adjusted" non-GAAP |
excluding the
effect of 2014 adjustments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
Actual |
|
Forecast |
In millions, except per-share
data |
First
Quarter |
Second
Quarter |
|
Full
Year |
Total Pentair |
|
|
|
|
|
|
|
|
Net sales |
$ |
1,644.0 |
|
$ |
1,834.1 |
|
|
approx |
$ |
7,100 |
|
Operating income-as reported |
182.1 |
|
226.4 |
|
|
approx |
939 |
|
% of net sales |
11.1 |
% |
12.3 |
% |
|
approx |
13.2 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
Restructuring and other |
17.0 |
|
44.1 |
|
|
approx |
61 |
|
Redomicile related expenses |
1.5 |
|
8.8 |
|
|
approx |
10 |
|
Operating income-as adjusted |
200.6 |
|
279.3 |
|
|
approx |
1,010 |
|
% of net sales |
12.2 |
% |
15.2 |
% |
|
approx |
14.3 |
% |
Net
income from continuing operations attributable to Pentair plc-as
reported |
125.5 |
|
159.2 |
|
|
approx |
667 |
|
Adjustments, net of tax |
16.4 |
|
41.5 |
|
|
approx |
58 |
|
Net income from continuing operations attributable
to Pentair plc-as adjusted |
$ |
141.9 |
|
$ |
200.7 |
|
|
approx |
$ |
725 |
|
Continuing earnings per ordinary
share attributable to Pentair plc-diluted |
|
|
|
|
|
|
|
|
Diluted earnings per ordinary share-as reported |
$ |
0.63 |
|
$ |
0.81 |
|
|
approx |
$3.43 - $3.45 |
Adjustments |
0.08 |
|
0.21 |
|
|
approx |
0.29 |
|
Diluted earnings per ordinary share-as
adjusted |
$ |
0.71 |
|
$ |
1.02 |
|
|
approx |
$3.72 - $3.74 |
|
|
|
Pentair plc
and Subsidiaries |
Reconciliation of the GAAP "As Reported" year ended
December 31, 2013 to the "Adjusted" non-GAAP |
excluding the
effect of 2013 adjustments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
In millions, except per-share
data |
First
Quarter |
Second
Quarter |
Third
Quarter |
Fourth
Quarter |
|
Year |
Total Pentair |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
1,663.7 |
|
$ |
1,791.7 |
|
$ |
1,713.3 |
|
$ |
1,831.0 |
|
|
$ |
6,999.7 |
|
Operating income -as reported |
66.4 |
|
204.9 |
|
230.0 |
|
241.3 |
|
|
742.6 |
|
% of net sales |
4.0 |
% |
11.4 |
% |
13.4 |
% |
13.2 |
% |
|
10.6 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Inventory step-up and customer backlog |
76.6 |
|
10.0 |
|
- |
|
- |
|
|
86.6 |
|
Restructuring and other |
26.6 |
|
31.3 |
|
7.9 |
|
54.1 |
|
|
119.9 |
|
Pension and other post-retirement mark-to-market gain |
- |
|
- |
|
- |
|
(63.2 |
) |
|
(63.2 |
) |
Trade name impairment |
- |
|
- |
|
- |
|
11.0 |
|
|
11.0 |
|
Redomicile related expenses |
- |
|
- |
|
- |
|
5.4 |
|
|
5.4 |
|
Operating income-as adjusted |
169.6 |
|
246.2 |
|
237.9 |
|
248.6 |
|
|
902.3 |
|
% of net sales |
10.2 |
% |
13.7 |
% |
13.9 |
% |
13.6 |
% |
|
12.9 |
% |
Net income from continuing operations attributable
to Pentair plc-as reported |
45.2 |
|
138.6 |
|
165.0 |
|
162.9 |
|
|
511.7 |
|
Gain
on sale of businesses, net of tax |
(12.5 |
) |
- |
|
- |
|
(3.0 |
) |
|
(15.5 |
) |
Interest expense |
- |
|
1.6 |
|
- |
|
- |
|
|
1.6 |
|
Adjustments, net of tax |
79.8 |
|
33.0 |
|
0.5 |
|
13.4 |
|
|
126.7 |
|
Net income from continuing operations attributable
to Pentair plc-as adjusted |
$ |
112.5 |
|
$ |
173.2 |
|
$ |
165.5 |
|
$ |
173.3 |
|
|
$ |
624.5 |
|
Continuing earnings per ordinary share
attributable to Pentair plc-diluted |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per ordinary share-as
reported |
$ |
0.22 |
|
$ |
0.67 |
|
$ |
0.81 |
|
$ |
0.81 |
|
|
$ |
2.50 |
|
Adjustments |
0.32 |
|
0.17 |
|
0.01 |
|
0.05 |
|
|
0.55 |
|
Diluted earnings per ordinary share-as
adjusted |
$ |
0.54 |
|
$ |
0.84 |
|
$ |
0.82 |
|
$ |
0.86 |
|
|
$ |
3.05 |
|
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Pentair plc via Globenewswire
HUG#1880940
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