Company reaffirms full-year 2015 guidance
RYE BROOK, N.Y. -- (Business Wire)
At its Analyst & Investor Day in New York City, Xylem Inc. (NYSE:XYL), a
leading global water technology company, today will outline its
five-year strategy to drive profitable growth. Xylem President and CEO
Patrick Decker will provide an overview of the Company’s plans to drive
above-market organic growth and its balanced capital deployment
strategy, which includes accelerated acquisition activity. Other members
of Xylem’s senior leadership will also present at the event.
“Xylem has a powerful arsenal to fuel our growth and create value for
our shareholders,” said Mr. Decker. “First, the combination of improving
end-market conditions and diligent execution will enable us to deliver
faster than market growth. Second, we expect to further expand operating
margins by more than 300 basis points over the next five years through
focused business simplification and continuous improvement initiatives.
And finally, we plan to execute a balanced capital deployment strategy.
With strong cash flow and a solid capital structure, we expect to deploy
up to $3.5 billion for disciplined M&A and opportunistic share
repurchases over the plan period.”
All presentations and a Q&A session at the Investor Day will be webcast
live at http://investors.xyleminc.com.
A replay will also be available.
Xylem also reaffirmed its full-year outlook, including full-year 2015
revenue of approximately $3.7 billion, a decrease of six to seven
percent from the full-year 2014 results. On an organic basis, Xylem
expects to generate revenue growth of approximately one to two percent.
Full-year 2015 adjusted operating income is expected to be in the range
of $470 million to $483 million, resulting in adjusted earnings per
share of $1.82 to $1.87. Excluding the projected unfavorable impact of
foreign exchange translation, Xylem’s adjusted earnings per share growth
expectations are in the range of four to seven percent over the
comparable full-year 2014 results. The Company’s outlook for projected
restructuring and realignment costs of $20 million for the year is
unchanged.
About Xylem
Xylem (XYL) is a leading global water technology provider, enabling
customers to transport, treat, test and efficiently use water in public
utility, residential and commercial building services, industrial and
agricultural settings. The Company does business in more than 150
countries through a number of market-leading product brands, and its
people bring broad applications expertise with a strong focus on finding
local solutions to the world’s most challenging water and wastewater
problems. Xylem is headquartered in Rye Brook, New York, with 2014
revenues of $3.9 billion and approximately 12,500 employees worldwide.
Xylem was named to the Dow Jones Sustainability Index for the last four
years for advancing sustainable business practices and solutions
worldwide, and the Company has satisfied the requirements to be a
constituent of the FTSE4Good Index Series each year since 2013.
The name Xylem is derived from classical Greek and is the tissue that
transports water in plants, highlighting the engineering efficiency of
our water-centric business by linking it with the best water
transportation of all – that which occurs in nature. For more
information, please visit us at www.xylem.com.
Forward-Looking Statements
This press release contains information that may constitute
“forward-looking statements" within the meaning of the Private
Securities Litigation Act of 1995. Forward-looking statements by their
nature address matters that are, to different degrees, uncertain.
Generally, the words “anticipate,” “estimate,” “expect,” “project,”
“intend,” “plan,” “forecast,” “believe,” “target,” “will,” “could,”
“would,” “should” and similar expressions identify forward-looking
statements, which generally are not historical in nature. However, the
absence of these words or similar expressions does not mean that a
statement is not forward-looking. These forward-looking statements
include statements about the capitalization of the Company, the
Company’s restructuring and realignment, future strategic plans and
other statements that describe the Company’s business strategy, outlook,
objectives, plans, intentions or goals. All statements that address
operating or financial performance, events or developments that we
expect or anticipate will occur in the future - including statements
relating to orders, revenue, operating margins and earnings per share
growth, and statements expressing general views about future operating
results - are forward-looking statements. Forward-looking statements
involve known and unknown risks, uncertainties and other important
factors that could cause actual results to differ materially from those
expressed or implied in, or reasonably inferred from, such
forward-looking statements.
Factors that could cause results to differ materially from those
anticipated include: economic, political and other risks associated with
our international operations, including military actions, economic
sanctions or trade embargoes that could affect customer markets, and
non-compliance with laws, including foreign corrupt practice laws,
export and import laws and competition laws; potential for unexpected
cancellations or delays of customer orders in our reported backlog; our
exposure to fluctuations in foreign currency exchange rates; competition
and pricing pressures in the markets we serve; the strength of housing
and related markets; weather conditions; ability to retain and attract
key members of management; our relationship with and the performance of
our channel partners; our ability to borrow or to refinance our existing
indebtedness and availability of liquidity sufficient to meet our needs;
changes in the value of goodwill or intangible assets; risks relating to
product defects, product liability and recalls; governmental
investigations; security breaches or other disruptions of our
information technology systems; litigation and contingent liabilities;
and other factors set forth under “Item 1A. Risk Factors” in our Annual
Report on Form 10-K for the year ended December 31, 2014 and with
subsequent filings we make with the Securities and Exchange Commission.
All forward-looking statements made herein are based on information
available to the Company as of the date of this press release. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150924005353/en/
Contacts:
Xylem Inc.
Media:
Kelly McAndrew, +1 914-323-5969
Kelly.McAndrew@xyleminc.com
or
Investors:
Phil
DeSousa, +1 914-323-5930
Phil.DeSousa@xyleminc.com
Source: Xylem Inc.
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