Global water technology company and pump manufacturer and rental specialist Xylem Inc. posted $1.345 billion in second quarter revenue compared to $1.317 billion for the second quarter of 2018, a 2.1-percent increase. Revenue increased 5 percent organically with revenue growth across all end markets, led by double-digit growth in the United States, and continued solid momentum in China and India. Reported operating margin in the quarter was 12.7 percent and adjusted operating margin was 14.3 percent, up 50 basis points compared to the prior year.
Excluding the impact of restructuring and realignment, the company delivered adjusted net income of $143 million or $0.79 per share in the quarter. Excluding the impact of foreign exchange translation, adjusted earnings per share was up 10 percent.
For the first six monts of the year, Xylem’s revenue was $2.582 billion compared to $2.534 billion for the first six months of 2018, a 1.9-percent increase.
“We have delivered another quarter of strong revenue growth and margin expansion,” said Patrick Decker, president and CEO of Xylem. “That consistent, organic orders and sales momentum – especially in the utilities market – reflects strong customer demand, and an equally strong focus on disciplined execution. We are confident that our Xylem team will continue to deliver mid-single-digit growth and strong margin expansion in the second half of the year, despite seeing some slowing in Europe. As digitization of the water sector drives new demand, we’re seeing accelerating interest in our offerings. We continue to invest in technology and capabilities that deliver step-changes in performance and economics alongside water and energy savings.”
Xylem is expecting full year revenue in the range of $5.29 to $5.38 billion. On an organic basic, it is expecting revenue growth in the range of 5 to 6 percent, up from previous guidance of 4 to 6 percent.
Xylem is headquartered in Rye Brook, N.Y.
