Xylem Drops Most on Record on Demand Decline for Water TreatmentLouise Downing
Xylem Inc. plunged the most on record after the water company spun off by ITT Corp. revised down full-year revenue forecasts citing weaker demand.
The shares fell as much as 17 percent, the most since it started trading in New York in 2011, after Xylem cut 2013 revenue forecasts to $3.7 billion, 5 percent lower than it predicted on March 7. Xylem cited a slump in U.S. industrial production, the credit crisis in Europe and lower shipments of treatment project.
The New York-based company reported second-quarter revenue of $960 million, down 3.4 percent from the same period a year ago, according to a statement issued today.
“While our second-quarter results were lower than expected, we captured important contract wins in June, resulting in record orders of more than $1 billion in the quarter,” said Gretchen McClain, president and chief executive officer of Xylem.
The company won contracts in China, Spain and the United Arab Emirates.