Pentair Reports Second Quarter 2019 Results

29.07.2019
Pentair plc announced second quarter 2019 sales of $800 million. Sales were up 2 percent compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales grew 1 percent in the second quarter.

Second quarter 2019 earnings per diluted share from continuing operations (“EPS”) were $0.68 compared to $0.44 in the second quarter of 2018. On an adjusted basis, the company reported EPS of $0.69 compared to $0.71 in the second quarter of 2018. Segment income, adjusted net income, free cash flow, and adjusted EPS are described in the schedules on the website.

Second quarter 2019 operating income was $134 million, up 9 percent compared to operating income for the second quarter of 2018, and return on sales (“ROS”) was 16.7 percent, an increase of 100 basis points when compared to the second quarter of 2018. On an adjusted basis, the company reported segment income of $154 million for the second quarter, down 6 percent compared to segment income for the second quarter of 2018, and ROS was 19.3 percent, a decrease of 170 basis points when compared to the second quarter of 2018.

Net cash provided by operating activities of continuing operations was $356 million and free cash flow provided by continuing operations was $343 million for the quarter.

Pentair paid a regular cash dividend of $0.18 per share in the second quarter of 2019. Pentair previously announced on December 10, 2018 that its Board of Directors approved a 3 percent increase in the company s regular annual cash dividend rate for 2019 to $0.72 from $0.70, adjusted for the spin-off of nVent Electric plc. This marks the 43rd consecutive year that Pentair has increased its dividend.

John L. Stauch, Pentair’s President and Chief Executive Officer, commented: “We delivered solid second quarter performance even as weather issues lingered during the quarter in several of our key markets. Our recent acquisitions are performing well and are helping to further our residential and commercial water treatment strategy. During the quarter, we successfully completed a bond offering and our balance sheet remains in excellent shape. Looking ahead, we remain confident that we will exit the year positioned for more normalized performance in 2020.”

Outlook
The company updates its estimated 2019 GAAP EPS to approximately $2.13 and on an adjusted EPS basis to approximately $2.35. The company updates its full year 2019 sales guidance to approximately flat to up 1 percent on a reported basis and approximately flat to down 1 percent on a core basis compared to full year 2018. The company expects full year free cash flow to approximate adjusted net income.

In addition, the company introduces third quarter 2019 GAAP EPS of approximately $0.50 - $0.52 and on an adjusted EPS basis of approximately $0.54 - $0.56. The company expects third quarter sales to be approximately flat to up 2 percent on a reported basis and approximately down 1 to 3 percent on a core basis compared to third quarter 2018.

Source: Pentair plc.

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