Feb. 7 (Bloomberg) — 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.
To contact the reporter on this story:
Randall Hackley in London at
rhackley@bloomberg.net
To contact the editor responsible for this story:
Reed Landberg at
landberg@bloomberg.net
