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Soft Enclosure and Tool Markets Prompt Pentair to Revise Earnings Guidance For Fourth Quarter 2001
12.11.2001
ST. PAUL, Minn., Dec 11, 2001 /PRNewswire via COMTEX/ -- Pentair (NYSE: PNR) today said that it has revised its earnings guidance for the fourth quarter of 2001 in recognition of the impact that weak global enclosure markets and soft holiday sales of its professional tools have had on the company's performance. The revised guidance takes into consideration the relatively stable performance in Pentair's Water Technologies Group during the first two months of the fourth quarter compared to that of the same period last year.

"The poor market conditions in Enclosures and Tools have resulted in orders and revenues some 13 percent below those of last year at this time," said Randall J. Hogan, Pentair president and CEO. "Internally, Pentair is healthier than it has been for some time, but external conditions are putting considerable pressure on our performance with little prospect of improvement before year-end. As a result, at the current sales run rate we expect fourth quarter continuing earnings per share in the $0.20 to $0.30 range, before restructuring charges."

According to the company, Pentair's goal of generating $150 million of free cash flow in 2001 remains on-target, as do efforts to accelerate product development, improve processes, and size operations appropriately for the markets they serve. Pentair has reduced employment by 1,600 people year-to-date.

"We continue to act aggressively to position the company for improved long-term performance even in a soft environment," Hogan said. "Our incremental operating and material cost reductions and lean enterprise activities should deliver annualized cost reductions of more than $38 million in 2002. In addition, we will further reduce our costs by restructuring our operations in the Enclosures Segment. Although details are still being finalized, this will result in a restructuring charge of between $35 and $40 million in the fourth quarter."

Hogan added, "The long-term prospects of Pentair remain positive, and both the Enclosures and Tools businesses will return to higher performance levels as savings from the additional cost reductions take effect and as the economy improves."

Pentair will announce its fourth quarter and full-year results for 2001 on February 7, 2002.

A Pentair conference call scheduled for 4:00 p.m. CST today will be webcast live via http://www.pentair.com . The conference call, which can be found on the site's "Financial Information" page, will be archived at the same location.

Pentair is a St. Paul-based manufacturer whose core businesses compete in tools, water technologies, and enclosures markets. The company employs 12,000 people in more than 50 locations around the world.

Any statements made about the company's anticipated financial results are forward-looking statements subject to risks and uncertainties such as continued economic growth, retail and industrial demand and other competitive pressures, the ability to successfully strengthen management and other uncertainties as described in the company's Annual Report on Form 10K for the year ended December 31, 2000. Actual results could differ materially from anticipated results.

For more information, please contact Mark Cain of Pentair, Inc., +1-651-639-5278.

SOURCE Pentair, Inc.

CONTACT:          Mark Cain of Pentair, Inc., +1-651-639-5278


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