Company also reaffirms full-year 2017 guidance
“The addition of Sensus is reshaping the growth and profitability
profile of Xylem by expanding our smart infrastructure portfolio and
increasing our exposure to faster-growing end markets and geographies,”
said Mr. Decker. “With the combination of Sensus’ higher growth rate,
the robust revenue synergies we expect to realize and our ongoing
productivity initiatives, we now expect to deliver higher organic
revenue growth and an additional 100 basis points of margin expansion by
2020 versus previous targets laid out in 2015. In addition, our ability
to generate significantly more operating cash flow as well as our larger
scale and leverage capacity will provide us with an additional
Xylem now projects to generate organic revenue growth of four to six percent through 2020, up from the previous forecast of three to five percent. The Company expects to achieve 400 to 500 basis points of operating margin expansion by 2020 – a 100 basis-point increase from the previous target of 300 to 400 basis points – driven by its ongoing focus on driving productivity as well as the expected impact from the cost and revenue synergies from its recent acquisitions. Xylem anticipates delivering adjusted core earnings per share growth in the mid-teen range and, with the impact of capital deployment, the growth range is projected to be in the high teens.
Xylem also announced that it will combine its Analytics, Sensus and Visenti businesses, effective second quarter 2017. As a result of this change, the Company will report the financial and operational results from these businesses as one segment. Xylem’s Water Infrastructure segment will no longer include the results of its Analytics business. The Applied Water segment remains unchanged.
Reaffirming 2017 Outlook
Xylem also reaffirmed its 2017 outlook, including full-year revenue in
the range of
The Company continues to project full-year 2017 adjusted operating
margin to be in the range of 13.2 to 13.7 percent, resulting in adjusted
earnings per share of
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 (XYL) is a leading global water technology company committed to
developing innovative technology solutions to the world’s water
challenges. The Company’s products and services move, treat, analyze,
monitor and return water to the environment in public utility,
industrial, residential and commercial building services. With its
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.
This press release contains information that may constitute “forward-looking statements.” 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.
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