Xylem withdraws first quarter and full-year guidance
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Global water technology company, Xylem Inc. has withdrawn its financial guidance for the first quarter of 2020 and for the full year, because of the impact of COVID-19. Guidance provided on February 6 for the first quarter had anticipated one to two percentage points of organic revenue softening and three to four cents of adjusted earnings per share impact from the initial, localised emergence of COVID-19 in China. However, the rapid international spread of the disease, especially in recent weeks, has since disrupted commercial activity and supply chains more broadly.
"Our first priority is the health and well-being of our colleagues, our customers and partners, and the communities we all serve," said Patrick Decker, President and CEO of Xylem. "As a business, we’re privileged to be supporting water and resource management customers who provide services essential to every hospital and healthcare worker, and to every home and family. Water is always fundamental but, right now, it’s also a critical contributor to halting COVID-19."
"Thanks to the work our team has done in recent years, Xylem is able to operate from a position of financial resilience, so we’ll be here for our customers as they keep those services flowing in their communities," continued Decker. "We have a strong balance sheet, healthy cash reserves and ready access to capital. We are also moving quickly to adapt our operating and capital spending. While we are withdrawing our previous guidance to reflect the reduced visibility driven by COVID-19, we believe we are very well-positioned to come through this period of uncertainty, continuing to deliver for our customers and creating significant economic and social value."
Xylem will provide a business update including the impact of COVID-19 when it releases its first quarter 2020 results.