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Pentair's Fourth Quarter 2005 EPS Gains 15%, or 24% Excluding the Impact of Stock Option Expensing, on 12% Higher Sales
02.02.2006
                                  Including Stock Option Expensing

                                  Q4 2005                   YTD 2005

    Continuing Operations   Amount       Change       Amount       Change

    Earnings per Share       $0.38          15%        $1.80          33%

    Net Sales             $ 732.1M        12.4%    $2,946.6M        29.3%

    Operating income       $ 66.9M         7.8%     $ 323.1M        30.7%

    Operating margins         9.1%     (40 bps)        11.0%       10 bps

    Free cash flow        $ 114.1M                  $ 201.3M


                                   Excluding Stock Option Expensing

                                  Q4 2005                   YTD 2005

    Continuing Operations   Amount       Change       Amount       Change

    Earnings per Share       $0.41          24%        $1.92          42%

    Net Sales             $ 732.1M        12.4%    $2,946.6M        29.3%

    Operating income       $ 70.8M        14.2%     $ 339.5M        37.3%

    Operating margins         9.7%       20 bps        11.5%       60 bps

    Free cash flow        $ 114.8M                  $ 210.0M

GOLDEN VALLEY, Minn., Feb. 2 /PRNewswire-FirstCall/ -- Pentair (NYSE: PNR) today announced its fourth quarter 2005 results, highlighting earnings per share (EPS) from continuing operations of $0.38, an increase of 15 percent, on sales of $732.1 million, a gain of 12 percent. Excluding the impact of stock options expensing (SOE), EPS of $0.41 gained 24 percent in the quarter. Pentair's FY2005 EPS from continuing operations gained 33 percent on a sales gain of 29 percent. Excluding the impact of SOE, EPS gained 42 percent in the year.

Pentair announced on December 19, 2005, that it would early adopt SFAS 123R for Share-Based Payment, an accounting change requiring companies to recognize an expense in the Income Statement for stock options. Pentair has adopted using the modified retrospective approach, restating the first three quarters of 2005 to reflect an impact of $9.1 million after tax expense or ($0.09) of EPS. In the fourth quarter 2005, the impact was $2.9 million after tax expense or ($0.03) of EPS, for a full year EPS impact of ($0.12). Pentair's reported fourth quarter 2005 and FY2005 results reflect the adoption of SFAS 123R. The reconciliation of the reported GAAP financial information to the non-GAAP financials excluding the adoption of SFAS 123R is provided on pages seven through 11 of this fourth quarter earnings announcement.

According to Pentair Chairman and Chief Executive Officer, Randall J. Hogan, "In our first full year after the transformation of Pentair into a Water-led business, we met our strategic and financial goals of replacing the earnings of our former Tools Group, and added an additional 14 percent to EPS on top of that, excluding stock option expensing. In 2005, we achieved organic growth of approximately six percent, while achieving the highest profitability and return on invested capital in the last five years. We also met our Free Cash Flow goal with $201 million and exceeded our 100% conversion of net income goal for the fifth consecutive year.

"In addition to the operating and financial progress in the year, we accelerated our investments to drive growth and instill operating excellence throughout the Company," Hogan said. "These activities included increasing R&D; adding international management, sales, engineering, sourcing and manufacturing talent; starting the implementation of a unified business system infrastructure in Europe; launching our Faradyne Motors joint venture with ITT Industries; and continuing to strengthen our global sourcing and operating competencies. In addition, through our disciplined M&A process, we examined a number of opportunities and completed two acquisitions that are consistent with our growth strategies. These actions lend confidence to our outlook for 2006 and, therefore, we are reaffirming our previous guidance for the full year 2006 of between $2.08 and $2.18, which includes the expensing of stock options. Further, we are expecting first quarter EPS of between $0.40 and $0.42."

Water Group Fourth Quarter Comments

  • Sales of $517.8 million were up 10 percent over the same period last year, or approximately 11 percent excluding unfavorable foreign exchange. Sales in all markets grew by at least mid-single digits in local currencies, with the strongest growth occurring in pump and pool markets.
  • Pump sales grew in the high single digits, spurred by new products, and strong municipal and industrial pump demand, as well as by pricing actions. Water systems sales also gained in the mid-single digits.
  • Share gains, favorable weather conditions, and successful early buy programs bolstered pool and spa equipment sales in the quarter.
  • Filtration grew in the mid-single digits, experiencing continued strength in foodservice markets and strong sales related to desalination projects.
  • Pentair sales in Euros in European filtration markets were up in the high teens, supported by strength in Food and Beverage markets, while sales in European pool markets realized sales gains in the high single digits benefiting from early buy programs. Asian sales were up significantly as a result of the ramp-up of production at the Pentair Suzhou manufacturing facility in China.
  • New Water products were significant in driving sales. New pumps included a bulk chemical transfer pump; a drainer pump; a gas engine transfer pump; and new split case, solids handling, and centrifugal pumps. Pool products included new heat pumps, automation controls, lights, filters, chlorinators, pumps, and pool finishes. New filtration products included a new modular filtration system and a number of new OEM products.
  • Excluding the impact of SOE, operating income of $56.8 million increased 16 percent over the same period last year driven by higher volumes, supply savings, and pricing, which were somewhat offset by materials inflation and our accelerated investments focused on growth, operating excellence, and international expansion. Excluding the impact of SOE, operating margins of 11.0 percent for the quarter expanded by 50 basis points over fourth quarter 2004 margins of 10.5 percent. Including the impact of SOE, operating income totaled $55.5 million, up 13 percent.
  • The integration of the water businesses continued on-track with $36 million of savings realized net of integration costs during 2005 against a total year goal of $30 million. These savings were somewhat offset by temporary operating inefficiencies related to product moves and plant consolidations undertaken to achieve future cost benefits, as well as investments made to support growth.
  • Investments for growth during the quarter included low-cost country engineering and sourcing, start-up of Eastern European manufacturing capability, increased infrastructure in China and Europe to support local market opportunities, filtration R&D innovation programs, and the Faradyne Motor joint venture, announced December 15, 2005.

Enclosures Group Fourth Quarter Comments

  • Sales of $214.3 million reflect an 18 percent gain over the same period last year. Excluding the impact of acquisitions and unfavorable foreign exchange, sales grew approximately 13 percent, significantly above the growth rate of the addressed markets. Enclosure sales grew in all markets in the fourth quarter, including Europe.
  • The strong sales performance was driven by share gains and pricing in the North American electrical market; new products and programs at Pentair Electronic Packaging and in Europe; and new customers in Asia.
  • The Group's vertical market initiative drove growth in petrochemical, food & beverage, water & wastewater, and pharmaceutical markets.
  • Electronics sales grew in the fourth quarter, with the new Advanced Telecommunications Computing Architecture (ATCA) platform supporting OEM customers worldwide. The Enclosures Group has secured a leading market position in ATCA, and sales of this product family are expected to accelerate throughout 2006.
  • Excluding the impact of SOE, operating income of $30.7 million was 30 percent higher than the same period last year, setting a new record for quarterly operating income in the Enclosures Group. This performance resulted from higher volumes, supply savings, productivity improvements, and pricing, which more than offset material inflation. Including the impact of SOE, operating income totaled $30.0 million, up 26 percent.
  • Excluding the impact of SOE, Enclosures margins were 14.3 percent for the quarter, expanding by 130 basis points over the fourth quarter 2004. The fourth quarter 2005 represents the Group's 16th consecutive quarter of sequential margin improvement. Including the impact of SOE, margins were 14.0 percent, up 100 basis points.
  • The Thermal Management businesses acquired on December 1, 2005 are included in Pentair's financials for one month. Integration activities are off to a fast start with supplier negotiations, lean enterprise training, and kaizen events conducted in the first week after closing.

A Pentair conference call scheduled for 11:00 a.m. CST today will be webcast live via http://www.pentair.com. A link to the conference call is posted on the site's "Financial Information" page and will be archived at the same location.

About Pentair, Inc.

Pentair (http://www.pentair.com) is a diversified operating company headquartered in Minnesota. Its Water Group is a global leader in providing innovative products and systems used worldwide in the movement, treatment, storage and enjoyment of water. Pentair's Enclosures Group is a leader in the global enclosures market, designing and manufacturing standard, modified, and custom enclosures that house and protect sensitive electronics and electrical components. With 2005 revenues of $2.95 billion, Pentair employs approximately 15,000 people worldwide.

Non-GAAP Financial Measures

In addition to the results reported in accordance with accounting principles generally accepted in the United States ("GAAP") included throughout this news release, the Company has provided information as if it had not adopted SFAS 123R during 2005 on a modified retrospective basis back to January 1, 2005 (non-GAAP financial measures). The adoption of SFAS 123R requires companies to recognize an expense in the Income Statement for stock options. Management believes presenting its financial information excluding stock option expensing is useful to both management and investors in comparing 2004 to 2005 because the GAAP results for 2005 include stock option expense on a fair value basis, but the results for 2004 do not. The financial information excluding stock option expensing should not be considered in isolation or as a substitute for financial information prepared in accordance with GAAP, or as a measure of profitability or liquidity. Also, financial information excluding stock option expensing, as determined and presented by the Company, may not be comparable to related or similarly titled measures reported by other companies.

Caution concerning forward-looking statements

Any statements made about the company's anticipated financial results are forward-looking statements subject to risks and uncertainties such as continued economic growth; the ability to integrate acquisitions successfully and the risk that expected synergies may not be fully realized or may take longer to realize than expected; foreign currency effects; retail and industrial demand; product introductions; and pricing and other competitive pressures. Forward-looking statements included herein are made as of the date hereof, and the company undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Actual results could differ materially from anticipated results.

     Pentair Contacts:
     Rachael Jarosh                        Mark Cain
     Communications                        Investor Relations
     Tel.: (763) 656-5280                  Tel.: (763) 656-5278
     E-mail: rachael.jarosh@pentair.com    E-mail: mark.cain@pentair.com


                        Pentair, Inc. and Subsidiaries
           Condensed Consolidated Statements of Income (Unaudited)

                             Three months ended            Year ended
                        December 31    December 31  December 31  December 31
    In thousands,           2005           2004         2005         2004
    except per-share data
    Net sales             $732,113      $651,476     $2,946,579   $2,278,129
    Cost of goods sold     524,304       468,274      2,098,558    1,623,419
    Gross profit           207,809       183,202        848,021      654,710
     % of net sales           28.4%         28.1%          28.8%        28.7%
    Selling, general and
     administrative        128,002       111,221        478,907      376,015
     % of net sales           17.5%         17.1%          16.2%        16.5%
    Research and
     development            12,935         9,932         46,042       31,453
     % of net sales            1.8%          1.5%           1.6%         1.4%
    Operating income        66,872        62,049        323,072      247,242
     % of net sales            9.1%          9.5%          11.0%        10.9%
    Gain on sale of
     investment                236             -          5,435            -
    Net interest expense    11,263        10,892         44,989       37,210
     % of net sales            1.5%          1.7%           1.5%         1.6%
    Income from continuing
     operations before
     income taxes           55,845        51,157        283,518      210,032
     % of net sales            7.6%          7.9%           9.6%         9.2%
    Provision for income
     taxes                  16,889        17,460         98,469       73,008
     Effective tax rate       30.2%         34.1%          34.7%        34.8%
    Income from continuing
     operations             38,956        33,697        185,049      137,024
    Income from
     discontinued
     operations, net of tax      -             -              -       40,248
    Loss on disposal of
     discontinued operations,
     net of tax                  -        (6,047)             -       (6,047)
    Net income             $38,956       $27,650       $185,049     $171,225

    Earnings per common share
    Basic
    Continuing operations    $0.39         $0.34          $1.84        $1.38
    Discontinued operations      -         (0.07)             -         0.34
    Basic earnings per
     common share            $0.39         $0.27          $1.84        $1.72

    Diluted
    Continuing operations    $0.38         $0.33          $1.80        $1.35
    Discontinued operations      -         (0.07)             -         0.33
    Diluted earnings per
     common share            $0.38         $0.26          $1.80        $1.68

    Weighted average common
    shares outstanding
    Basic                  100,605       100,014        100,665       99,316
    Diluted                102,314       102,541        102,618      101,706

    Cash dividends declared
     per common share        $0.13         $0.11          $0.52        $0.43


                        Pentair, Inc. and Subsidiaries
              Condensed Consolidated Balance Sheets (Unaudited)

                                                  December 31    December 31
    In thousands                                      2005           2004
                        Assets
    Current assets
    Cash and cash equivalents                        $48,500        $31,495
    Accounts and notes receivable, net               423,847        396,459
    Inventories                                      349,312        323,676
    Deferred tax assets                               49,933         49,074
    Prepaid expenses and other current assets         24,394         24,433
    Total current assets                             895,986        825,137

    Property, plant and equipment, net               311,839        336,302

    Other assets
    Non-current assets of discontinued operations          -            393
    Goodwill                                       1,718,207      1,620,404
    Intangibles, net                                 266,533        258,126
    Other                                             62,152         80,213
    Total other assets                             2,046,892      1,959,136
    Total assets                                  $3,254,717     $3,120,575


                  Liabilities and Shareholders' Equity
    Current liabilities
    Current maturities of long-term debt              $4,137        $11,957
    Accounts payable                                 207,320        195,289
    Employee compensation and benefits                95,552        104,821
    Accrued product claims and warranties             43,551         42,524
    Current liabilities of discontinued operations       192            192
    Income taxes                                      18,464         27,395
    Accrued rebates and sales incentives              45,374         41,618
    Other current liabilities                        111,026        103,083
    Total current liabilities                        525,616        526,879

    Long-term debt                                   748,477        724,148
    Pension and other retirement compensation        152,780        135,356
    Post-retirement medical and other benefits        73,949         69,667
    Deferred tax liabilities                         125,801        142,873
    Other non-current liabilities                     70,455         70,804
    Non-current liabilities of discontinued
     operations                                        2,029          3,054
    Total liabilities                              1,699,107      1,672,781

    Shareholders' equity                           1,555,610      1,447,794
    Total liabilities and shareholders' equity    $3,254,717     $3,120,575


    Days sales in accounts receivable
    (13 month moving average)                             54             52
    Days inventory on hand (13 month moving average)      70             62
    Days in accounts payable (13 month moving average)    56             57
    Debt/total capital                                  32.6%          33.7%


                        Pentair, Inc. and Subsidiaries
         Condensed Consolidated Statements of Cash Flows (Unaudited)

                                                           Year ended
                                                   December 31    December 31
    In thousands                                       2005           2004
    Operating activities
    Net income                                     $ 185,049      $ 171,225
    Adjustments to reconcile net income to
     net cash provided by operating activities
    Net income from discontinued operations                -        (40,248)
    Loss on disposal of discontinued operations                       6,047
    Depreciation                                      56,565         47,063
    Amortization                                      15,995          7,501
    Deferred income taxes                              5,360         16,736
    Stock compensation                                24,186          6,345
    Excess tax benefits from stock-based compensation (8,676)             -
    Gain on sale of investment                        (5,435)             -
    Changes in assets and liabilities, net of
     effects of business acquisitions
     and Dispositions
      Accounts and notes receivable                  (20,527)        26,918
      Inventories                                    (19,201)       (51,996)
      Prepaid expenses and other current assets         (452)         2,176
      Accounts payable                                 6,629         17,274
      Employee compensation and benefits             (21,394)         4,596
      Accrued product claims and warranties           (1,099)         2,993
      Income taxes                                    11,302          6,352
      Other current liabilities                        4,609          8,879
      Pension and post-retirement benefits            16,512         11,508
      Other assets and liabilities                    (2,114)         6,794
       Net cash provided by continuing operations    247,309        250,163
       Net cash (used for) provided by operating
        activities of discontinued operations           (632)        13,928
         Net cash provided by operating activities   246,677        264,091

    Investing activities
    Capital expenditures                             (62,471)       (48,867)
    Proceeds from sale of property and equipment      17,111              -
    Acquisitions, net of cash acquired              (150,534)      (869,155)
    Divestitures                                     (10,155)       773,399
    Proceeds from sale of investment                  23,835              -
    Other                                             (2,071)            60
         Net cash used for investing activities     (184,285)      (144,563)

    Financing activities
    Net short-term borrowings                              -         (4,162)
    Proceeds from long-term debt                     875,746        343,316
    Repayment of long-term debt                     (856,845)      (440,518)
    Excess tax benefits from stock-based
     compensation                                      8,676              -
    Proceeds from exercise of stock options            8,380         10,862
    Repurchases of common stock                      (25,000)        (4,200)
    Dividends paid                                   (53,134)       (43,128)
         Net cash used for financing activities      (42,177)      (137,830)

    Effect of exchange rate changes on cash           (3,210)         1,808
    Change in cash and cash equivalents               17,005        (16,494)
    Cash and cash equivalents, beginning of period    31,495         47,989
    Cash and cash equivalents, end of period         $48,500        $31,495

    Free cash flow
    Net cash provided by operating activities      $ 246,677      $ 264,091
    Less capital expenditures                        (62,471)       (48,867)
    Proceeds from sale of property and equipment      17,111              -
    Free cash flow                                 $ 201,317      $ 215,224

    Excess tax benefits from stock-based
     compensation                                      8,676              -
    Free cash flow excluding stock option
     expensing                                      $209,993       $215,224


                        Pentair, Inc. and Subsidiaries
  Supplemental Financial Information by Reportable Business Segment for 2005
                                 (Unaudited)

                     First Qtr   Second Qtr  Third Qtr   Fourth Qtr   Year
    In thousands       2005         2005       2005        2005       2005

    Net sales to external customers
    Water           $512,088      $585,657    $515,945   $517,815  $2,131,505
    Enclosures       197,547       202,866     200,363    214,298     815,074
    Consolidated    $709,635      $788,523    $716,308   $732,113  $2,946,579

    Intersegment sales
    Water               $ 22          $187        $280      $(341)     $  148
    Enclosures           402           630         407        770       2,209
    Other               (424)         (817)       (687)      (429)     (2,357)
    Consolidated        $  -          $  -        $  -      $   -      $    -

    Operating income (loss)
    Water            $60,487       $92,167     $58,964    $55,520    $267,138
    Enclosures        25,172        26,325      27,778     29,954     109,229
    Other            (13,573)      (11,258)     (9,862)   (18,602)    (53,295)
    Consolidated     $72,086      $107,234     $76,880    $66,872    $323,072

    Operating income as a percent of net sales
    Water               11.8%         15.7%       11.4%      10.7%       12.5%
    Enclosures          12.7%         13.0%       13.9%      14.0%       13.4%
    Consolidated        10.2%         13.6%       10.7%       9.1%       11.0%


    Operating income (loss) excluding impact of SFAS 123R adoption(a)
    Water            $61,803       $93,481     $60,278    $56,834    $272,396
    Enclosures        25,926        27,078      28,531     30,707     112,242
    Other            (11,356)       (9,082)     (8,033)   (16,707)    (45,178)
    Consolidated     $76,373      $111,477     $80,776    $70,834    $339,460

    Operating income as a percent of net sales excluding impact of SFAS 123R
     adoption(a)
    Water               12.1%         16.0%       11.7%      11.0%       12.8%
    Enclosures          13.1%         13.3%       14.2%      14.3%       13.8%
    Consolidated        10.8%         14.1%       11.3%       9.7%       11.5%


    (a) The Company adopted SFAS 123R in December 2005 using the modified
        retrospective method back to January 1, 2005.  In connection with the
        adoption, the expense as disclosed in the first three quarters related
        to stock-based compensation was corrected for immaterial errors.
        The corrections resulted in no change to the quarterly EPS impact of
        stock option expensing.

Pentair, Inc. and Subsidiaries

  Supplemental Financial Information by Reportable Business Segment for 2004
                                 (Unaudited)

                     First Qtr   Second Qtr  Third Qtr   Fourth Qtr   Year
    In thousands       2004         2004        2004        2004      2004

Net sales to external customers

    Water            $313,981     $353,316    $426,670   $469,427  $1,563,394

Enclosures 174,472 177,117 181,097 182,049 714,735

Consolidated $488,453 $530,433 $607,767 $651,476 $2,278,129

    Intersegment sales
    Water               $  21        $  29       $  26      $  42       $ 118
    Enclosures            332          986           3        140       1,461
    Other                (353)      (1,015)        (29)      (182)     (1,579)
    Consolidated        $   -        $   -       $   -      $   -       $   -

Operating income (loss)

    Water             $41,547      $59,253     $47,410    $49,100    $197,310
    Enclosures         19,354       21,590      23,211     23,689      87,844
    Other             (10,791)      (9,860)     (6,521)   (10,740)    (37,912)
    Consolidated      $50,110      $70,983     $64,100    $62,049    $247,242

Operating income as a percent of net sales

    Water                13.2%        16.8%       11.1%      10.5%       12.6%
    Enclosures           11.1%        12.2%       12.8%      13.0%       12.3%
    Consolidated         10.3%        13.4%       10.5%       9.5%       10.9%

Pentair, Inc. and Subsidiaries

Reconciliation of the GAAP "As Reported" three months ended December 31,

2005 to the "Adjusted" non-GAAP excluding the effect of SFAS 123R adoption

                                 (Unaudited)

                                          Three months ended
                        As Reported                  Adjusted    As Reported
                        December 31      SFAS 123R  December 31  December 31
    In thousands,           2005                       2005         2004
     except per-share
     data
    Net sales             $732,113         $    -    $732,113      $651,476
    Cost of goods sold     524,304              -     524,304       468,274
    Gross profit           207,809              -     207,809       183,202
     % of net sales           28.4%                      28.4%         28.1%
    Selling, general and
     administrative        128,002         (3,962)    124,040       111,221
     % of net sales           17.5%                      16.9%         17.1%
    Research and
     development            12,935              -      12,935         9,932
     % of net sales            1.8%                       1.8%          1.5%
    Operating income        66,872          3,962      70,834        62,049
     % of net sales            9.1%                       9.7%          9.5%
    Gain on sale of
     investment                236              -         236             -
    Net interest expense    11,263              -      11,263        10,892
     % of net sales            1.5%                       1.5%          1.7%
    Income from continuing
     operations before
     income taxes           55,845          3,962      59,807        51,157
     % of net sales            7.6%                       8.2%          7.9%
    Provision for income
     taxes                  16,889          1,073      17,962        17,460
     Effective tax rate       30.2%          27.1%       30.0%         34.1%
    Income from continuing
     operations             38,956          2,889      41,845        33,697
    Income from
     discontinued
     operations, net of tax      -              -           -             -
    Loss on disposal of
     discontinued operations,
     net of tax                  -              -           -        (6,047)
    Net income             $38,956         $2,889    $ 41,845       $27,650

    Earnings per common share
    Basic
    Continuing operations    $0.39          $0.03       $0.42         $0.34
    Discontinued operations      -              -           -         (0.07)
    Basic earnings per
     common share            $0.39          $0.03       $0.42         $0.27

    Diluted
    Continuing operations    $0.38          $0.03       $0.41         $0.33
    Discontinued operations      -              -           -         (0.07)
    Diluted earnings per
     common share            $0.38          $0.03       $0.41         $0.26

    Weighted average common shares outstanding
    Basic                  100,605              -     100,605       100,014
    Diluted                102,314             52     102,366       102,541

    Cash dividends declared
     per common share        $0.13          $   -     $  0.13       $  0.11



                        Pentair, Inc. and Subsidiaries

Reconciliation of the GAAP "As Reported" year ended December 31, 2005 to the

"Adjusted" non-GAAP excluding the effect of SFAS 123R adoption (Unaudited)

                                           Year ended
                        As Reported                   Adjusted     As Reported
                        December 31      SFAS 123R   December 31   December 31
    In thousands,           2005                        2005          2004
    except per-share
    data
    Net sales           $2,946,579         $   -    $2,946,579    $2,278,129
    Cost of goods sold   2,098,558             -     2,098,558     1,623,419
    Gross profit           848,021             -       848,021       654,710
     % of net sales           28.8%                       28.8%         28.7%
    Selling, general
     and administrative    478,907       (16,388)      462,519       376,015
     % of net sales           16.2%                       15.7%         16.5%
    Research and
     development            46,042             -        46,042        31,453
     % of net sales            1.6%                        1.6%          1.4%
    Operating income       323,072        16,388       339,460       247,242
     % of net sales           11.0%                       11.5%         10.9%
    Gain on sale of
     investment              5,435             -         5,435             -
    Net interest expense    44,989             -        44,989        37,210
     % of net sales            1.5%                        1.5%          1.6%
    Income from continuing
     operations before
     income taxes          283,518        16,387       299,906       210,032
     % of net sales            9.6%                       10.2%          9.2%
    Provision for income
     taxes                  98,469         4,389       102,949        73,008
     Effective tax rate       34.7%         26.8%         34.3%         34.8%
    Income from continuing
     operations            185,049        11,999       196,957       137,024
    Income from
     discontinued
     operations, net of tax      -             -             -        40,248
    Loss on disposal of
     discontinued operations,
     net of tax                  -             -             -        (6,047)
    Net income            $185,049      $ 11,999      $196,957      $171,225

    Earnings per common share
    Basic
    Continuing operations    $1.84         $0.12         $1.96         $1.38
    Discontinued operations      -             -             -          0.34
    Basic earnings per
     common share            $1.84         $0.12         $1.96         $1.72

    Diluted
    Continuing operations    $1.80         $0.12         $1.92         $1.35
    Discontinued operations      -             -             -          0.33
    Diluted earnings per
     common share            $1.80         $0.12         $1.92         $1.68

    Weighted average common
     shares outstanding
    Basic                  100,665             -       100,665        99,316
    Diluted                102,618           144       102,762       101,706

    Cash dividends declared
     per common share        $0.52        $    -         $0.52         $0.43

SOURCE Pentair, Inc.

CONTACT: Rachael Jarosh, Communications, +1-763-656-5280, rachael.jarosh@pentair.com, or Mark Cain, Investor Relations, +1-763-656-5278, mark.cain@pentair.com, both of Pentair

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