News
Release
·
Second quarter sales of $1.7 billion. Total sales declined 9
percent consisting of a 2 percent decline in core sales and
FX translation impact of negative 7 percent.
·
Adjusted EPS decreased 6 percent to $0.96 and adjusted operating
margins declined 50 basis points to 14.7 percent compared to second
quarter 2014 adjusted results.
· Free
cash flow was $310 million in the quarter and the company expects
to deliver full year free cash flow greater than 120 percent of net
income.
·
Beginning this quarter, Pentair will exclude non-cash amortization
from adjusted EPS guidance to better reflect the company's
performance.
· The
company updates 2015 adjusted EPS guidance to a range of $3.80 -
$3.90. This excludes approximately $0.45 per share of
non-cash amortization. The company's prior adjusted EPS
guidance of $3.80 included non-cash amortization.
Reconciliations of GAAP to
Non-GAAP measures are in the attached financial tables.
MANCHESTER, United Kingdom - July 21,
2015- Pentair plc (NYSE: PNR) today announced second quarter 2015
sales of $1.7 billion. Sales were down 9 percent compared to sales
for the same period last year. Adjusted second quarter 2015
earnings per diluted share from continuing operations ("EPS") were
$0.96, down 6 percent from adjusted EPS of $1.02 in the second
quarter of last year. On a GAAP basis, the company reported
EPS of $0.84 compared to EPS of $0.81 in the second quarter of
2014. Amounts excluded from adjusted EPS, adjusted operating
income and segment income are described in the attached
schedules.
"We had a solid quarter, but we are not satisfied
with our results," said Randall J. Hogan, Pentair Chairman and
Chief Executive Officer. "Many of our served markets,
especially those in energy and industrial, remain challenged and we
do not expect them to recover in the second half of the year.
We will continue to aggressively manage our cost structure and
drive productivity to work through our near-term challenges.
We are also continuing to invest in our high-performing Technical
Solutions and Water Quality Systems segments where we see strategic
organic and inorganic growth opportunities. We are confident
these actions will position Pentair's portfolio for long-term
growth and value creation."
Second quarter 2015 adjusted operating income was
$245 million, down 12 percent compared to the same period last
year, and adjusted operating margins were 14.7 percent, a decline
of 50 basis points when compared to adjusted second quarter 2014
operating margins.
Free cash flow in the quarter was $310 million and
was $151 million for the first six months of 2015. The
company expects to deliver full year free cash flow greater than
120 percent of net income.
Pentair paid dividends of $0.32 per share in the
second quarter of 2015. Pentair previously announced on December
10, 2014 that its Board of Directors approved a 16 percent increase
in the company's regular annual cash dividend rate for 2015 to
$1.28 from $1.10. 2015 marks the 39th consecutive year that Pentair
has increased its dividend.
SECOND QUARTER BUSINESS
HIGHLIGHTS
All references to changes in core sales exclude
the impact of currency translation. See attached reconciliations of
these Non-GAAP measures.
Valves & Controls
delivered second quarter 2015 sales of $496 million, down 21
percent versus the prior year quarter. Core sales declined 11
percent year over year for the second quarter and negative FX
translation was 10 percent. Backlog decreased 14 percent to $1.2
billion compared to second quarter 2014.
· Core
sales in the Energy vertical, which accounted for approximately 60
percent of Valves & Controls revenue in the quarter,
decreased 10 percent. Core sales to the oil & gas industry
were down 5 percent while core sales to the power industry
decreased 8 percent. Core sales to the mining industry
decreased 34 percent.
· Core
sales in the Industrial vertical, which accounted for approximately
40 percent of Valves & Controls revenue in the quarter,
decreased 14 percent.
Valves & Controls delivered second
quarter segment income of $51 million, down 42 percent compared to
$88 million in the same quarter last year. Second quarter segment
margins decreased 360 basis points to 10.3 percent.
Flow & Filtration
Solutions second quarter sales were $375 million, down 12
percent versus the prior year quarter. Core sales declined 5
percent in the second quarter and negative FX translation was 7
percent.
· Core
sales in the Residential & Commercial vertical, which
accounted for approximately 35 percent of Flow & Filtration
Solutions revenue in the quarter, decreased 10 percent.
· Core
sales in the Food & Beverage vertical, which accounted for
approximately 30 percent of Flow & Filtration Solutions revenue
in the quarter, increased 2 percent.
· Core
sales in the Infrastructure vertical, which accounted for
approximately 15 percent of Flow & Filtration Solutions revenue
in the quarter, decreased 5 percent.
· Core
sales in the Industrial vertical, which accounted for approximately
15 percent of Flow & Filtration Solutions revenue in the
quarter, decreased 4 percent.
Flow & Filtration Solutions second quarter
segment income of $50 million represented an 8 percent decrease as
compared to $54 million in the same period last year. Segment
margins increased by 60 basis points to 13.3 percent.
Water Quality Systems
delivered second quarter 2015 sales of $388 million, up 3 percent
versus the prior year quarter. Core sales grew 6 percent in the
second quarter and negative FX translation was 3 percent.
· Core
sales in the Residential & Commercial vertical, which accounted
for approximately 85 percent of Water Quality Systems revenue in
the quarter, increased 5 percent.
· Core
sales in the Food & Beverage vertical, which accounted for
approximately 15 percent of Water Quality Systems revenue in the
quarter, increased 10 percent.
Water Quality Systems delivered second quarter
segment income of $86 million, which represented a 5 percent
increase compared to $82 million in the same quarter last year.
Second quarter 2015 segment margins increased 40 basis points to
22.1 percent.
Technical Solutions delivered
second quarter 2015 sales of $407 million, flat versus the prior
year quarter. Core sales grew 6 percent in the second quarter and
negative FX translation was 6 percent.
· Core
sales in the Industrial vertical, which accounted for approximately
45 percent of Technical Solutions revenue in the quarter, were up 4
percent.
· Core
sales in the Energy vertical, which accounted for approximately 25
percent of Technical Solutions revenue in the quarter, increased 17
percent.
· Core
sales in the Residential & Commercial vertical, which accounted
for approximately 15 percent of Technical Solutions revenue in the
quarter, increased 10 percent.
· Core
sales in the Infrastructure vertical, which accounted for
approximately 15 percent of Technical Solutions revenue in the
quarter, decreased 5 percent.
Technical Solutions delivered second quarter
segment income of $81 million, up 5 percent compared to $77 million
in the same quarter last year. Second quarter 2015 segment margins
increased 110 basis points to 19.9 percent.
OUTLOOK
The company updated its full year 2015 adjusted
EPS guidance to a range of $3.80 - $3.90, which excludes
approximately $0.45 per share of non-cash amortization. The
prior 2015 adjusted EPS guidance of $3.80 included non-cash
amortization. On a comparable basis to the company's updated
guidance, 2014 adjusted EPS was $4.23 excluding $0.45 of non-cash
amortization. The company anticipates full year 2015 sales of
$6.4 billion, or down approximately 8 to 9 percent over 2014 sales
on a reported basis and down 2 to 3 percent on a core basis.
The company expects to generate free cash flow in excess of 120
percent of net income in 2015.
Going forward, Pentair will exclude non-cash
amortization from adjusted EPS guidance to better reflect the
company's performance. The company introduced third quarter
2015 adjusted EPS guidance of $0.94 - $0.97, which excludes $0.12
of non-cash amortization, and down approximately 14 percent versus
the same quarter last year's adjusted EPS. The company
expects third quarter revenue to be approximately $1.6 billion,
which would be down approximately 8 to 9 percent on a reported
basis and down 2 to 3 percent on a core basis compared to third
quarter 2014 revenue.
EARNINGS CONFERENCE CALL
Pentair Chairman and CEO Randall J. Hogan and
Chief Financial Officer John L. Stauch will discuss the company's
performance and second quarter 2015 results 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 achieve the benefits of
planned cost take-out actions; the ability to successfully
identify, complete and integrate acquisitions; 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
complete the disposition of the remaining portion of the Water
Transport business on anticipated terms and timetable; the impact
of changes in laws and regulations, including those that limit U.S.
tax benefits; the outcome of litigation and governmental
proceedings; and the ability to achieve our long-term strategic
operating goals. Additional information concerning these and other
factors is contained in our filings with the U.S. Securities and
Exchange Commission, including in our 2014 Annual Report on Form
10-K. All forward-looking statements speak only as of the date of
this press release. We assume no obligation, and disclaim any
obligation, to update the information contained in this press
release.
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 2014 revenues of $7.0
billion, Pentair employs approximately 30,000 people worldwide.
PENTAIR CONTACTS:
Jim Lucas
Vice President, Investor Relations & Strategic
Planning
Direct: 763-656-5575
Email: jim.lucas@pentair.com
Media Line
Direct: 763-656-5580
Pentair plc
and Subsidiaries |
Condensed
Consolidated Statements of Operations (Unaudited) |
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
In millions, except per-share
data |
June 27,
2015 |
June 28,
2014 |
|
June 27,
2015 |
June 28,
2014 |
Net sales |
$ |
1,661.2 |
|
$ |
1,834.1 |
|
|
$ |
3,136.2 |
|
$ |
3,478.1 |
|
Cost
of goods sold |
1,095.0 |
|
1,187.8 |
|
|
2,059.8 |
|
2,267.7 |
|
Gross profit |
566.2 |
|
646.3 |
|
|
1,076.4 |
|
1,210.4 |
|
% of net sales |
34.1 |
% |
35.2 |
% |
|
34.3 |
% |
34.8 |
% |
Selling, general and administrative |
319.3 |
|
389.7 |
|
|
628.5 |
|
742.2 |
|
% of net sales |
19.3 |
% |
21.3 |
% |
|
20.0 |
% |
21.4 |
% |
Research and development |
29.0 |
|
30.2 |
|
|
58.8 |
|
59.7 |
|
% of net sales |
1.7 |
% |
1.6 |
% |
|
1.9 |
% |
1.7 |
% |
Operating income |
217.9 |
|
226.4 |
|
|
389.1 |
|
408.5 |
|
% of net sales |
13.1 |
% |
12.3 |
% |
|
12.4 |
% |
11.7 |
% |
Other (income) expense: |
|
|
|
|
|
Equity
income of unconsolidated subsidiaries |
(0.6 |
) |
(0.3 |
) |
|
(1.1 |
) |
(0.6 |
) |
Loss on sale of business |
- |
|
0.2 |
|
|
- |
|
0.2 |
|
Net
interest expense |
18.6 |
|
17.9 |
|
|
36.8 |
|
34.0 |
|
% of net sales |
1.1 |
% |
1.0 |
% |
|
1.2 |
% |
1.0 |
% |
Income
from continuing operations before income taxes |
199.9 |
|
208.6 |
|
|
353.4 |
|
374.9 |
|
Provision for income taxes |
46.0 |
|
49.4 |
|
|
81.3 |
|
90.2 |
|
Effective tax rate |
23.0 |
% |
23.7 |
% |
|
23.0 |
% |
24.1 |
% |
Net income from continuing
operations |
153.9 |
|
159.2 |
|
|
272.1 |
|
284.7 |
|
Income
(loss) from discontinued operations, net of tax |
(1.3 |
) |
2.3 |
|
|
(5.6 |
) |
1.0 |
|
Loss from sale / impairment of discontinued operations,
net of tax |
(4.8 |
) |
- |
|
|
(4.8 |
) |
(5.6 |
) |
Net income |
$ |
147.8 |
|
$ |
161.5 |
|
|
$ |
261.7 |
|
$ |
280.1 |
|
Earnings (loss) per ordinary
share |
|
|
|
|
|
Basic |
|
|
|
|
|
Continuing operations |
$ |
0.85 |
|
$ |
0.82 |
|
|
$ |
1.51 |
|
$ |
1.46 |
|
Discontinued operations |
(0.03 |
) |
0.02 |
|
|
(0.06 |
) |
(0.02 |
) |
Basic earnings per ordinary share |
$ |
0.82 |
|
$ |
0.84 |
|
|
$ |
1.45 |
|
$ |
1.44 |
|
Diluted |
|
|
|
|
|
Continuing operations |
$ |
0.84 |
|
$ |
0.81 |
|
|
$ |
1.49 |
|
$ |
1.44 |
|
Discontinued operations |
(0.03 |
) |
0.01 |
|
|
(0.06 |
) |
(0.03 |
) |
Diluted earnings per ordinary share |
$ |
0.81 |
|
$ |
0.82 |
|
|
$ |
1.43 |
|
$ |
1.41 |
|
Weighted average ordinary shares
outstanding |
|
|
|
|
|
Basic |
179.8 |
|
193.1 |
|
|
180.1 |
|
194.7 |
|
Diluted |
182.3 |
|
196.4 |
|
|
182.6 |
|
198.0 |
|
Cash dividends paid per ordinary
share |
$ |
0.32 |
|
$ |
0.25 |
|
|
$ |
0.64 |
|
$ |
0.50 |
|
Pentair plc
and Subsidiaries |
|
Condensed
Consolidated Balance Sheets (Unaudited) |
|
|
|
|
|
|
June
27,
2015 |
December
31,
2014 |
|
In millions |
|
Assets |
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
147.3 |
|
$ |
110.4 |
|
|
Accounts and notes receivable, net |
1,170.6 |
|
1,205.9 |
|
|
Inventories |
1,200.4 |
|
1,130.4 |
|
|
Other
current assets |
383.9 |
|
366.8 |
|
|
Current assets held for sale |
0.7 |
|
80.6 |
|
|
Total current assets |
2,902.9 |
|
2,894.1 |
|
|
Property, plant and equipment,
net |
908.5 |
|
950.0 |
|
|
Other assets |
|
|
|
Goodwill |
4,732.1 |
|
4,741.9 |
|
|
Intangibles, net |
1,587.4 |
|
1,608.1 |
|
|
Other non-current assets |
416.7 |
|
436.2 |
|
|
Non-current assets held for sale |
17.1 |
|
24.9 |
|
|
Total other assets |
6,753.3 |
|
6,811.1 |
|
|
Total assets |
$ |
10,564.7 |
|
$ |
10,655.2 |
|
|
Liabilities and Equity |
|
Current liabilities |
|
|
|
Current maturities of long-term debt and short-term
borrowings |
$ |
5.3 |
|
$ |
6.7 |
|
|
Accounts payable |
525.9 |
|
583.1 |
|
|
Employee compensation and benefits |
250.0 |
|
305.5 |
|
|
Other
current liabilities |
675.7 |
|
709.1 |
|
|
Current liabilities held for sale |
3.1 |
|
35.1 |
|
|
Total current liabilities |
1,460.0 |
|
1,639.5 |
|
|
Other liabilities |
|
|
|
Long-term debt |
3,260.9 |
|
2,997.4 |
|
|
Pension and other post-retirement compensation and
benefits |
305.1 |
|
322.0 |
|
|
Deferred tax liabilities |
465.1 |
|
528.3 |
|
|
Other non-current liabilities |
521.0 |
|
497.7 |
|
|
Non-current liabilities held for sale |
0.5 |
|
6.5 |
|
|
Total liabilities |
6,012.6 |
|
5,991.4 |
|
|
Equity |
4,552.1 |
|
4,663.8 |
|
|
Total liabilities and
equity |
$ |
10,564.7 |
|
$ |
10,655.2 |
|
|
Pentair plc
and Subsidiaries |
Condensed
Consolidated Statements of Cash Flows (Unaudited) |
|
Six months ended |
In millions |
June
27,
2015 |
June
28,
2014 |
Operating activities |
|
|
Net
income |
$ |
261.7 |
|
$ |
280.1 |
|
Loss (income) from discontinued operations, net of
tax |
5.6 |
|
(1.0 |
) |
Loss from
sale / impairment of discontinued operations, net of tax |
4.8 |
|
5.6 |
|
Adjustments to reconcile net income
from continuing operations to net cash provided by (used for)
operating activities of continuing operations |
|
|
Equity
income of unconsolidated subsidiaries |
(1.1 |
) |
(0.6 |
) |
Depreciation |
66.8 |
|
69.3 |
|
Amortization |
55.6 |
|
57.5 |
|
Deferred income taxes |
4.9 |
|
9.7 |
|
Loss on
sale of business |
- |
|
0.2 |
|
Share-based compensation |
19.4 |
|
16.5 |
|
Excess
tax benefits from share-based compensation |
(4.6 |
) |
(7.8 |
) |
Loss (gain) on sale of assets |
(8.3 |
) |
0.2 |
|
Changes in assets and liabilities, net of effects of
business acquisitions |
|
|
Accounts and notes receivable |
2.7 |
|
40.3 |
|
Inventories |
(97.6 |
) |
(26.5 |
) |
Other current assets |
(35.6 |
) |
(48.9 |
) |
Accounts
payable |
(43.4 |
) |
(9.3 |
) |
Employee compensation and benefits |
(41.2 |
) |
(34.7 |
) |
Other
current liabilities |
30.3 |
|
92.7 |
|
Other non-current assets and liabilities |
(24.9 |
) |
(26.1 |
) |
Net cash
provided by (used for) operating activities of continuing
operations |
195.1 |
|
417.2 |
|
Net cash provided by (used for) operating activities of
discontinued operations |
(9.6 |
) |
(2.7 |
) |
Net cash
provided by (used for) operating activities |
185.5 |
|
414.5 |
|
Investing activities |
|
|
Capital
expenditures |
(66.8 |
) |
(59.6 |
) |
Proceeds from sale of property and equipment |
23.1 |
|
2.7 |
|
Acquisitions, net of cash acquired |
(99.0 |
) |
- |
|
Other |
(0.5 |
) |
0.3 |
|
Net cash provided by (used for) investing activities of
continuing operations |
(143.2 |
) |
(56.6 |
) |
Net cash provided by (used for) investing activities
of discontinued operations |
59.0 |
|
- |
|
Net cash provided by (used for) investing activities |
(84.2 |
) |
(56.6 |
) |
Financing activities |
|
|
Net
receipts (repayments) of short-term borrowings |
(0.3 |
) |
3.9 |
|
Net receipts of commercial paper and revolving
long-term debt |
263.4 |
|
198.8 |
|
Repayments of long-term debt |
(4.3 |
) |
(12.9 |
) |
Excess tax benefits from share-based compensation |
4.6 |
|
7.8 |
|
Shares
issued to employees, net of shares withheld |
17.3 |
|
31.5 |
|
Repurchases of ordinary shares |
(200.0 |
) |
(450.7 |
) |
Dividends
paid |
(115.6 |
) |
(99.1 |
) |
Purchase of noncontrolling interest |
- |
|
(134.7 |
) |
Net cash provided by (used for) financing activities |
(34.9 |
) |
(455.4 |
) |
Effect of exchange rate changes on
cash and cash equivalents |
(29.5 |
) |
6.0 |
|
Change in cash and cash
equivalents |
36.9 |
|
(91.5 |
) |
Cash and cash equivalents, beginning of period |
110.4 |
|
256.0 |
|
Cash and cash equivalents, end of
period |
$ |
147.3 |
|
$ |
164.5 |
|
Free cash flow |
|
|
Net cash
provided by (used for) operating activities of continuing
operations |
$ |
195.1 |
|
$ |
417.2 |
|
Capital expenditures |
(66.8 |
) |
(59.6 |
) |
Proceeds from sale of property and equipment |
23.1 |
|
2.7 |
|
Free cash flow |
$ |
151.4 |
|
$ |
360.3 |
|
Pentair plc
and Subsidiaries |
Supplemental
Financial Information by Reportable Segment (Unaudited) |
|
|
|
|
|
|
|
|
|
2015 |
|
2014 |
In millions |
First
Quarter |
Second
Quarter |
Six Months |
|
First
Quarter |
Second
Quarter |
Six Months |
Net sales |
|
|
|
|
|
|
|
Valves
& Controls |
$ |
429.2 |
|
$ |
496.4 |
|
$ |
925.6 |
|
|
$ |
531.0 |
|
$ |
628.6 |
|
$ |
1,159.6 |
|
Flow & Filtration
Solutions |
350.1 |
|
374.6 |
|
724.7 |
|
|
401.1 |
|
424.5 |
|
825.6 |
|
Water
Quality Systems |
306.9 |
|
387.7 |
|
694.6 |
|
|
304.0 |
|
377.9 |
|
681.9 |
|
Technical Solutions |
395.8 |
|
407.1 |
|
802.9 |
|
|
415.3 |
|
408.6 |
|
823.9 |
|
Other |
(7.0 |
) |
(4.6 |
) |
(11.6 |
) |
|
(7.4 |
) |
(5.5 |
) |
(12.9 |
) |
Consolidated |
$ |
1,475.0 |
|
$ |
1,661.2 |
|
$ |
3,136.2 |
|
|
$ |
1,644.0 |
|
$ |
1,834.1 |
|
$ |
3,478.1 |
|
Segment income (loss) |
|
|
|
|
|
|
|
Valves & Controls |
$ |
42.0 |
|
$ |
51.1 |
|
$ |
93.1 |
|
|
$ |
60.9 |
|
$ |
87.7 |
|
$ |
148.6 |
|
Flow
& Filtration Solutions |
29.1 |
|
49.7 |
|
78.8 |
|
|
34.7 |
|
54.0 |
|
88.7 |
|
Water Quality Systems |
49.3 |
|
85.7 |
|
135.0 |
|
|
47.7 |
|
82.0 |
|
129.7 |
|
Technical
Solutions |
72.7 |
|
80.8 |
|
153.5 |
|
|
79.0 |
|
76.6 |
|
155.6 |
|
Other |
(21.9 |
) |
(22.4 |
) |
(44.3 |
) |
|
(21.7 |
) |
(21.0 |
) |
(42.7 |
) |
Consolidated |
$ |
171.2 |
|
$ |
244.9 |
|
$ |
416.1 |
|
|
$ |
200.6 |
|
$ |
279.3 |
|
$ |
479.9 |
|
Segment income as a percent of net
sales |
|
|
|
|
|
|
|
Valves
& Controls |
9.8 |
% |
10.3 |
% |
10.1 |
% |
|
11.5 |
% |
13.9 |
% |
12.8 |
% |
Flow & Filtration Solutions |
8.3 |
% |
13.3 |
% |
10.9 |
% |
|
8.7 |
% |
12.7 |
% |
10.7 |
% |
Water
Quality Systems |
16.1 |
% |
22.1 |
% |
19.4 |
% |
|
15.7 |
% |
21.7 |
% |
19.0 |
% |
Technical Solutions |
18.4 |
% |
19.9 |
% |
19.1 |
% |
|
19.1 |
% |
18.8 |
% |
18.9 |
% |
Consolidated |
11.6 |
% |
14.7 |
% |
13.3 |
% |
|
12.2 |
% |
15.2 |
% |
13.8 |
% |
Pentair plc
and Subsidiaries |
Reconciliation of the GAAP "As Reported" year ended
December 31, 2015 to the "Adjusted" non-GAAP |
excluding the
effect of 2015 adjustments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
Actual |
|
Forecast |
In millions, except per-share
data |
First Quarter |
Second Quarter |
|
Third
Quarter |
|
Full
Year |
Total Pentair |
|
|
|
|
|
|
|
|
Net sales |
$ |
1,475.0 |
|
$ |
1,661.2 |
|
|
approx |
$ |
1,595 |
|
|
approx |
$ |
6,400 |
|
Operating income-as reported |
171.2 |
|
217.9 |
|
|
approx |
188 |
|
|
approx |
792 |
|
% of net sales |
11.6 |
% |
13.1 |
% |
|
approx |
11.8 |
% |
|
approx |
12.4 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
Restructuring and other |
- |
|
25.5 |
|
|
approx |
30 |
|
|
approx |
85 |
|
Inventory step-up |
- |
|
1.5 |
|
|
approx |
2 |
|
|
approx |
3 |
|
Operating income-as adjusted |
171.2 |
|
244.9 |
|
|
approx |
220 |
|
|
approx |
880 |
|
% of net sales |
11.6 |
% |
14.7 |
% |
|
approx |
13.8 |
% |
|
approx |
13.8 |
% |
Net
income from continuing operations-as reported |
118.2 |
|
153.9 |
|
|
approx |
130 |
|
|
approx |
553 |
|
Adjustments, net of tax |
- |
|
20.8 |
|
|
approx |
25 |
|
|
approx |
69 |
|
Net
income from continuing operations-as adjusted |
$ |
118.2 |
|
$ |
174.7 |
|
|
approx |
$ |
155 |
|
|
approx |
$ |
622 |
|
Intangible asset amortization, net of tax |
21.2 |
|
21.6 |
|
|
approx |
21 |
|
|
approx |
86 |
|
Net income from continuing operations-as adjusted,
excluding intangible asset amortization |
$ |
139.4 |
|
$ |
196.3 |
|
|
approx |
$ |
176 |
|
|
approx |
$ |
708 |
|
Continuing earnings per ordinary
share-diluted |
|
|
|
|
|
|
|
|
Diluted earnings per ordinary share-as reported |
$ |
0.65 |
|
$ |
0.84 |
|
|
approx |
$0.68 - 0.71 |
|
approx |
$2.97 - 3.07 |
Adjustments |
- |
|
0.12 |
|
|
approx |
0.14 |
|
|
approx |
0.38 |
|
Diluted earnings per ordinary share-as adjusted |
$ |
0.65 |
|
$ |
0.96 |
|
|
approx |
$0.82 - 0.85 |
|
approx |
$3.35 - 3.45 |
Intangible asset amortization |
0.11 |
|
0.12 |
|
|
approx |
0.12 |
|
|
approx |
0.45 |
|
Diluted earnings per ordinary share-as adjusted,
excluding intangible asset amortization |
$ |
0.76 |
|
$ |
1.08 |
|
|
approx |
$0.94 - 0.97 |
|
approx |
$3.80 - 3.90 |
Pentair plc
and Subsidiaries |
Reconciliation of Net Sales Growth to Core Net Sales Growth
by Vertical |
for the
quarter ending June 27, 2015 (Unaudited) |
|
Q2 Net Sales Growth |
|
Core |
Currency |
Acq./
Div. |
Total |
Valves & Controls |
(11.3 |
)% |
(9.7 |
)% |
- |
% |
(21.0 |
)% |
Industrial |
(13.7 |
)% |
(7.3 |
)% |
- |
% |
(21.0 |
)% |
Energy |
(9.8 |
)% |
(11.1 |
)% |
- |
% |
(20.9 |
)% |
Flow & Filtration Solutions |
(4.8 |
)% |
(7.0 |
)% |
- |
% |
(11.8 |
)% |
Industrial |
(3.9 |
)% |
(5.4 |
)% |
- |
% |
(9.3 |
)% |
Residential & Commercial |
(9.8 |
)% |
(6.9 |
)% |
- |
% |
(16.7 |
)% |
Food
& Beverage |
2.4 |
% |
(8.7 |
)% |
- |
% |
(6.3 |
)% |
Infrastructure |
(4.6 |
)% |
(6.7 |
)% |
- |
% |
(11.3 |
)% |
Water Quality Systems |
5.6 |
% |
(3.0 |
)% |
- |
% |
2.6 |
% |
Residential & Commercial |
4.8 |
% |
(2.6 |
)% |
- |
% |
2.2 |
% |
Food
& Beverage |
10.3 |
% |
(4.9 |
)% |
- |
% |
5.4 |
% |
Technical Solutions |
6.0 |
% |
(6.4 |
)% |
- |
% |
(0.4 |
)% |
Industrial |
3.6 |
% |
(7.2 |
)% |
- |
% |
(3.6 |
)% |
Residential & Commercial |
10.2 |
% |
(7.5 |
)% |
- |
% |
2.7 |
% |
Energy |
16.7 |
% |
(5.1 |
)% |
- |
% |
11.6 |
% |
Infrastructure |
(4.7 |
)% |
(6.3 |
)% |
- |
% |
(11.0 |
)% |
Total Pentair |
(2.5 |
)% |
(6.9 |
)% |
- |
% |
(9.4 |
)% |
Industrial |
(6.1 |
)% |
(7.0 |
)% |
- |
% |
(13.1 |
)% |
Residential & Commercial |
1.3 |
% |
(4.4 |
)% |
- |
% |
(3.1 |
)% |
Energy |
(5.0 |
)% |
(9.7 |
)% |
- |
% |
(14.7 |
)% |
Food
& Beverage |
5.2 |
% |
(7.3 |
)% |
- |
% |
(2.1 |
)% |
Infrastructure |
(3.9 |
)% |
(6.4 |
)% |
- |
% |
(10.3 |
)% |
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) |
|
|
|
|
|
|
|
In millions, except per-share
data |
First
Quarter |
Second
Quarter |
Third
Quarter |
Fourth
Quarter |
|
Full
Year |
Total Pentair |
|
|
|
|
|
|
Net sales |
$ |
1,644.0 |
|
$ |
1,834.1 |
|
$ |
1,758.4 |
|
$ |
1,802.5 |
|
|
$ |
7,039.0 |
|
Operating income-as reported |
182.1 |
|
226.4 |
|
267.4 |
|
176.0 |
|
|
851.9 |
|
% of net sales |
11.1 |
% |
12.3 |
% |
15.2 |
% |
9.8 |
% |
|
12.1 |
% |
Adjustments: |
|
|
|
|
|
|
Restructuring and other |
17.0 |
|
44.1 |
|
- |
|
48.5 |
|
|
109.6 |
|
Pension and other post-retirement mark-to-market
loss |
- |
|
- |
|
- |
|
49.9 |
|
|
49.9 |
|
Redomicile related expenses |
1.5 |
|
8.8 |
|
- |
|
- |
|
|
10.3 |
|
Operating income-as adjusted |
200.6 |
|
279.3 |
|
267.4 |
|
274.4 |
|
|
1,021.7 |
|
% of net sales |
12.2 |
% |
15.2 |
% |
15.2 |
% |
15.2 |
% |
|
14.5 |
% |
Net income from continuing operations-as
reported |
125.5 |
|
159.2 |
|
192.5 |
|
129.8 |
|
|
607.0 |
|
Adjustments, net of tax |
16.4 |
|
41.5 |
|
- |
|
66.8 |
|
|
124.7 |
|
Net income from continuing operations-as
adjusted |
$ |
141.9 |
|
$ |
200.7 |
|
$ |
192.5 |
|
$ |
196.6 |
|
|
$ |
731.7 |
|
Intangible asset amortization, net of tax
|
21.7 |
|
22.0 |
|
21.5 |
|
20.8 |
|
|
86.0 |
|
Net income from continuing operations-as adjusted,
excluding intangible asset amortization |
$ |
163.6 |
|
$ |
222.7 |
|
$ |
214.0 |
|
$ |
217.4 |
|
|
$ |
817.7 |
|
Continuing earnings per ordinary
share-diluted |
|
|
|
|
|
|
Diluted earnings per ordinary share-as
reported |
$ |
0.63 |
|
$ |
0.81 |
|
$ |
1.00 |
|
$ |
0.70 |
|
|
$ |
3.14 |
|
Adjustments |
0.08 |
|
0.21 |
|
- |
|
0.36 |
|
|
0.64 |
|
Diluted earnings per ordinary share-as
adjusted |
$ |
0.71 |
|
$ |
1.02 |
|
$ |
1.00 |
|
$ |
1.06 |
|
|
$ |
3.78 |
|
Intangible asset amortization |
0.11 |
|
0.11 |
|
0.11 |
|
0.11 |
|
|
0.45 |
|
Diluted earnings per ordinary share-as adjusted,
excluding intangible asset amortization |
$ |
0.82 |
|
$ |
1.13 |
|
$ |
1.11 |
|
$ |
1.17 |
|
|
$ |
4.23 |
|
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#1940061
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