Pentair Provides Financial Outlook for 2016; Reaffirms Full Year 2015 Outlook
December 17 2015 - 7:00AM
-
Company provides full year 2016 adjusted EPS
outlook of $4.05 to $4.25
-
At the mid-point of the range, core sales are
expected to be down approximately 2 percent and segment income is
expected to increase 10 percent. Free cash flow of greater
than $750 million is expected to be equal to or greater
than
adjusted net income.
-
Reaffirms 2015 adjusted EPS outlook of $3.84 to
$3.86
Reconciliations of GAAP to
Non-GAAP measures are in the attached financial tables.
MANCHESTER, United Kingdom - December 17,
2015 - Pentair plc (NYSE: PNR) today provided its outlook for 2016
and reaffirmed its fourth quarter and full year 2015 sales and
earnings outlook.
For full year 2016, the company is providing an
adjusted earnings per diluted share (EPS) outlook of $4.05 to
$4.25, which represents an increase of 5 to 10 percent from the
mid-point of the 2015 adjusted EPS outlook. The company
anticipates full year 2016 sales to be approximately $6.6 billion,
or an increase of 3 percent, a 2 percent core sales decline, a 1
percent foreign exchange headwind, and a 6 percent positive
contribution from acquisitions compared to estimated 2015
sales. The company expects to generate greater than $750
million in free cash flow or approximately 100 percent of adjusted
net income in 2016.
"2015 was a challenging year, but we continue to
make progress on the elements within our control," said Randall J.
Hogan, Chairman and Chief Executive Officer. "Three of our
four segments are positioned to grow income in 2016. While
our Valves & Controls segment is facing ongoing challenges in
its various served industries, we remain vigilant on aligning our
selling organization to customer requirements and right-sizing the
cost structure to better position the business for the long
term. The integration of ERICO remains on track and we
believe our businesses serving the Food & Beverage and
Residential & Commercial verticals continue to have favorable
growth prospects."
Pentair expects fourth quarter 2015 adjusted EPS
to be in the range of $1.03 to $1.05, down approximately 10 percent
versus the same quarter last year's adjusted EPS. The company
expects full year 2015 adjusted EPS to be in the range of $3.84 to
$3.86, which represents a decrease of 9 percent over 2014 adjusted
EPS of $4.23.
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 achieve the benefits of
planned cost take-out actions; the ability to successfully
identify, complete and integrate acquisitions, including the
ability to successfully integrate and achieve the expected benefits
of the acquisition of ERICO Global Company; 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 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:
Investors:
Jim Lucas
Vice President, Investor Relations & Strategic
Planning
Direct: 763-656-5575
Email: jim.lucas@pentair.com
Media:
Rebecca Osborn
Senior Manager, External Communications
Direct: 763-656-5589
Email: rebecca.osborn@pentair.com
Pentair plc
and Subsidiaries |
Reconciliation of the GAAP year ended December 31, 2015 to
the non-GAAP |
excluding the
effect of 2015 adjustments (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual |
|
Forecast |
In millions, except per-share
data |
|
First Quarter |
Second Quarter |
Third
Quarter |
|
Fourth
Quarter |
|
Full
Year |
Total Pentair |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
1,475.0 |
|
$ |
1,661.2 |
|
$ |
1,552.1 |
|
|
approx |
$ |
1,745 |
|
|
approx |
$ |
6,430 |
|
Operating income |
|
171.2 |
|
217.9 |
|
180.0 |
|
|
approx |
158 |
|
|
approx |
726 |
|
% of net sales |
|
11.6 |
% |
13.1 |
% |
11.6 |
% |
|
approx |
9.1 |
% |
|
approx |
11.3 |
% |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Restructuring and other |
|
- |
|
25.5 |
|
25.3 |
|
|
approx |
54 |
|
|
approx |
105 |
|
Intangible amortization |
|
27.6 |
|
28.0 |
|
28.2 |
|
|
approx |
39 |
|
|
approx |
123 |
|
Inventory step-up |
|
- |
|
1.5 |
|
1.4 |
|
|
approx |
29 |
|
|
approx |
32 |
|
Deal related costs and expenses |
|
- |
|
- |
|
14.3 |
|
|
approx |
- |
|
|
approx |
14 |
|
Segment income |
|
198.8 |
|
272.9 |
|
249.2 |
|
|
approx |
280 |
|
|
approx |
1,000 |
|
% of net sales |
|
13.5 |
% |
16.4 |
% |
16.1 |
% |
|
approx |
16.0 |
% |
|
approx |
15.6 |
% |
Net
income from continuing operations-as reported |
|
118.2 |
|
153.9 |
|
115.2 |
|
|
approx |
96 |
|
|
approx |
484 |
|
Amortization of bridge financing fees |
|
- |
|
- |
|
8.3 |
|
|
approx |
- |
|
|
approx |
8 |
|
Adjustments, net of tax |
|
21.2 |
|
42.4 |
|
53.2 |
|
|
approx |
94 |
|
|
approx |
211 |
|
Net income from continuing operations-as
adjusted |
|
$ |
139.4 |
|
$ |
196.3 |
|
$ |
176.7 |
|
|
approx |
$ |
190 |
|
|
approx |
$ |
703 |
|
Continuing earnings per ordinary
share-diluted |
|
|
|
|
|
|
|
|
|
|
Diluted earnings per ordinary share-as
reported |
|
$ |
0.65 |
|
$ |
0.84 |
|
$ |
0.63 |
|
|
approx |
$0.52 - $0.54 |
|
approx |
$2.64 - $2.66 |
Adjustments |
|
0.11 |
|
0.24 |
|
0.34 |
|
|
approx |
0.51 |
|
|
approx |
1.20 |
|
Diluted earnings per ordinary share-as
adjusted |
|
$ |
0.76 |
|
$ |
1.08 |
|
$ |
0.97 |
|
|
approx |
$1.03 - $1.05 |
|
approx |
$3.84 - $3.86 |
Pentair plc
and Subsidiaries |
Reconciliation of the GAAP year ended December 31,
2014 to the 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 |
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 |
|
Intangible amortization |
28.5 |
|
29.0 |
|
28.4 |
|
28.1 |
|
|
114.0 |
|
Pension and other post-retirement mark-to-market loss |
- |
|
- |
|
- |
|
49.9 |
|
|
49.9 |
|
Redomicile related expenses |
1.5 |
|
8.8 |
|
- |
|
- |
|
|
10.3 |
|
Segment income |
229.1 |
|
308.3 |
|
295.8 |
|
302.5 |
|
|
1,135.7 |
|
% of net sales |
13.9 |
% |
16.8 |
% |
16.8 |
% |
16.8 |
% |
|
16.1 |
% |
Net
income from continuing operations-as reported |
125.5 |
|
159.2 |
|
192.5 |
|
129.8 |
|
|
607.0 |
|
Adjustments, net of tax |
38.1 |
|
63.5 |
|
21.5 |
|
87.6 |
|
|
210.7 |
|
Net income from continuing operations-as
adjusted |
$ |
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 |
0.19 |
|
0.32 |
|
0.11 |
|
0.47 |
|
|
1.09 |
|
Diluted earnings per ordinary share-as
adjusted |
$ |
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#1974311
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