2nd quarter results shows strong growth and eight per cent increase in revenue and orders for Xylem
Xyelm,second quarter,strong growth,revenue
Xylem Inc., a leading global water technology company dedicated to solving the world’s most challenging water issues, recently reported second quarter 2018 net income of US$115 million, or US$0.64 per share.
Excluding the impact of restructuring, realignment and other special items, Xylem delivered adjusted net income of US$131 million or US$0.73 per share in the quarter, a 24 per cent increase over the prior year period.
Second quarter revenue was US$1.3 billion, up 13 per cent including the impact of foreign exchange and acquisitions. Revenue for the quarter increased eight per cent on an organic basis, driven by double-digit growth in utilities and continued strength in the industrial and commercial end markets across nearly all major geographies.
Orders increased eight per cent organically in the quarter. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) margin improved by 70 basis points year-over-year to 19.3 per cent, driven by volume leverage and savings from productivity initiatives.
Reported operating margin in the quarter was 13 per cent and adjusted operating margin increased 70 basis points year-over-year to 13.8 per cent, including a 20-basis-point negative impact due to purchase accounting amortisation.
“Our second quarter results were very strong as our team continued to successfully execute on our strategy to generate consistent, profitable growth. Once again, we delivered high single-digit organic growth in revenue and orders globally, reflecting solid growth in each of the major geographic markets in which we operate,” Patrick Decker, president and CEO of Xylem, said. “We are capturing share in the utilities end market where strong orders and backlog growth reflect continued momentum. As we indicated previously, we began implementing price increases earlier this year and I’m pleased with the traction we’ve gained in the marketplace. Our ability to successfully realise meaningful pricing impact, while continuing to execute our productivity initiatives, has and will continue to help us mitigate higher input costs from inflationary pressures and tariffs. Our strong operational performance in the first half of the year and continued momentum underpins our confidence in our updated expectations for the full year.”