Xylem Misses Revenue Estimates as Utility Sales Decline
Xylem Inc., the water company spun off in 2011 by ITT Corp., reported fourth-quarter revenue that fell short of analysts’ estimates as sales to utilities and industry fell. The board said it will raise the dividend by 15 percent.
Xylem’s sales fell 3.4 percent from a year earlier to $969 million, the White Plains, New York-based company said today in a statement. That was less than the $979.3 million average of nine analysts’ estimates compiled by Bloomberg.
Revenue in its infrastructure unit, which delivers clean water and transports wastewater, fell six percent to $637 million, “reflecting weakness in the public utility and industrial dewatering markets,” according to the statement.
Xylem expects charges of $60 million to $70 million for 2013, related in part to restructuring efforts in Europe.
Xylem, whose pumps helped clean waters in New York tunnels after Hurricane Sandy, said revenue in the first half of this year may be affected by a slowdown it saw in the second half of last year. Sales in the U.S. are expected to improve in the second half of 2013, and the dividend increase will take effect next quarter.
The shares declined 3.4 percent to $26.91 at the close in New York. Xylem has slipped 1.1 percent in the past 12 months, while the 50-member S&P Global Water Index has advanced 14 percent.
Xylem announced Feb. 5 the $57 million purchase of Pims Group, a U.K. wastewater services company.
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