LONDON--(BUSINESS WIRE)--
Pentair plc (NYSE: PNR) today provided preliminary first quarter results
and revised its full year 2019 guidance.
Preliminary first quarter 2019 earnings per diluted share from
continuing operations (“EPS”) were $0.30 per share compared to $0.32 in
the first quarter of 2018. On an adjusted basis, the company reported
EPS of $0.43 compared to $0.49 in the first quarter of 2018. The
company’s prior expectations for first quarter 2019 GAAP EPS from
continuing operations were $0.47 to $0.50 and on an adjusted basis were
$0.52 to $0.55. Preliminary first quarter 2019 sales were $689 million.
Sales were down 6 percent compared to sales for the same period last
year. Excluding currency translation, acquisitions and divestitures,
core sales declined 4 percent in the first quarter. The company’s prior
guidance for first quarter sales was to be approximately flat to up 1
percent on a reported basis and up approximately 4 to 5 percent on a
core basis compared to first quarter 2018. Core sales and adjusted EPS
are described in the attached schedules.
“Our first quarter was significantly impacted by the adverse cold and
wet weather in our higher margin Aquatics and ag-related businesses,”
said John L. Stauch, Pentair President and Chief Executive Officer.
“While we are disappointed with the slow start to the year, we are
pleased with our recent acquisitions and remain confident about the long
term outlook of our businesses.”
OUTLOOK
Based on preliminary first quarter results, the company has updated its
outlook for the full year 2019.
The company updates its 2019 GAAP EPS from continuing operations to a
range of $2.04 to $2.09 and on an adjusted basis to a range of $2.30 to
$2.35. This compares to the company’s prior 2019 GAAP EPS guidance from
continuing operations of $2.29 to $2.39 and on an adjusted basis of
$2.50 to $2.60. The company now anticipates full year 2019 sales to
increase approximately 1 to 2 percent on a reported basis and to be
approximately flat to up 1 percent on a core basis. The company’s prior
2019 sales guidance was an increase of approximately 5 to 6 percent on a
reported basis and up approximately 4 to 5 percent on a core basis.
“To start 2019, in addition to the adverse impact from weather, we have
seen moderating growth in several of our end markets. We are also
experiencing higher than anticipated inventory levels in some of our key
distribution channels. The Aquatics and agriculture businesses are
seasonal and while we believe demand trends remain stable, the window
for recovery this year is narrow. We believe this is a 2019 event and we
expect to be better positioned for the season next year. We are
adjusting costs to reflect the lower volumes we are expecting,
implementing additional productivity actions, and building an even
stronger foundation as we enter 2020.”
“We continue to believe in our long-term strategy to be a leading
residential and commercial water treatment company. We have a leading
Aquatics business and our Residential and Commercial Treatment business
was strengthened with two strategic acquisitions we made earlier this
year. Our balance sheet remains strong and we will continue to be
disciplined in our capital allocation focused on creating long-term
shareholder value.”
EARNINGS CONFERENCE CALL
The company will report its first quarter results before the opening of
the New York Stock Exchange on Wednesday, April 17, 2019. The company
will also hold a conference call with investors at 9:00 a.m. Eastern
Daylight Time (EDT) that day.
Related presentation materials will be posted to the “Investor
Relations” section of the company's website (www.pentair.com)
prior to the conference call.
The call can be accessed via webcast through the “Investor Relations”
section of Pentair’s website or by dialing 800-706-6748 or 973-638-3449
along with conference number 8870258. A replay of the conference call
will be made accessible once it becomes available and will remain
accessible through midnight on May 17, 2019 by dialing 855-859-2056 or
404-537-3406, along with the above conference number.
Reconciliations of non-GAAP financial measures are set forth in the
attachments to this release and in the presentations, each of which can
be found on Pentair’s website. The webcast and presentations will be
archived at the company’s website following the conclusion of the event.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
The preliminary financial results for the first quarter 2019 represent
the most current information available to management and reflect
estimates and assumptions. Our actual results may differ materially from
these preliminary results due to the completion of our financial closing
procedures, final adjustments and other developments that may arise
between the date of this release and the time that financial results for
the first quarter 2019 are finalized. The foregoing preliminary
financial results have not been compiled or examined by our independent
registered public accounting firm nor has our independent registered
public accounting firm performed any procedures with respect to this
information or expressed any opinion or any form of assurance of such
information. These preliminary financial results should not be viewed as
a substitute for full financial statements prepared in accordance with
U.S. GAAP or as a measure of performance.
This release contains statements that we believe to be "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements, other than statements of historical
fact are forward-looking statements. Without limitation, any statements
preceded or followed by or that include the words "targets," "plans,"
"believes," "expects," "intends," "will," "likely," "may,"
"anticipates," "estimates," "projects," "should," "would," "positioned,"
"strategy," "future" or words, phrases or terms of similar substance or
the negative thereof, are forward-looking statements. These
forward-looking statements are not guarantees of future performance and
are subject to risks, uncertainties, assumptions and other factors, some
of which are beyond our control, which could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements. These factors include overall global
economic and business conditions impacting our business, including the
strength of housing and related markets; demand, competition and pricing
pressures in the markets we serve; volatility in currency exchange
rates; failure of markets to accept new product introductions and
enhancements; the ability to successfully identify, finance, complete
and integrate acquisitions; the ability to successfully integrate
the Aquion and Pelican Water Systems acquisitions; the ability to
achieve the benefits of our restructuring plans and cost reduction
initiatives; risks associated with operating foreign businesses; the
impact of material cost and other inflation; the impact of seasonality
of sales and weather conditions; our ability to comply with laws and
regulations; the impact of changes in laws, regulations and
administrative policy, including those that limit U.S. tax benefits or
impact trade agreements and tariffs; the outcome of litigation and
governmental proceedings; the ability to realize the anticipated
benefits from the separation of nVent Electric plc from Pentair; and the
ability to achieve our long-term strategic operating goals. Additional
information concerning these and other factors is contained in our
filings with the Securities and Exchange Commission, including our
Annual Report on Form 10-K for the year ended December 31, 2018. All
forward-looking statements speak only as of the date of this release.
Pentair plc assumes no obligation, and disclaims any obligation, to
update the information contained in this release.
ABOUT PENTAIR PLC
At Pentair, we believe the health of our world depends on reliable
access to clean water. We deliver a comprehensive range of smart,
sustainable water solutions to homes, business and industry around the
world. Our industry leading and proven portfolio of solutions enables
our customers to access clean, safe water. Whether it’s improving,
moving or enjoying water, we help manage the world’s most precious
resource. Smart, Sustainable, Water Solutions. For Life.
Pentair had revenue in 2018 of $3.0 billion, and trades under the ticker
symbol PNR. With approximately 130 locations in 34 countries and 10,000
employees, we believe that the future of water depends on us. To learn
more, visit www.pentair.com.
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Pentair plc and Subsidiaries
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Reconciliation of the GAAP year ended December 31, 2019 to the
non-GAAP
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excluding the effect of 2019 adjustments (Unaudited)
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Preliminary
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Actual
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Forecast
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First Quarter
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|
First Quarter
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Full Year 2019
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2019
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2018
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|
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EPS Range
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EPS
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EPS
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Low
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High
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Diluted earnings per ordinary share—as reported
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$
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0.30
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$
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0.32
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approx
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$
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2.04
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$
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2.09
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Restructuring and other
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0.01
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0.03
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approx
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0.01
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|
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0.01
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Intangible amortization
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|
0.04
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0.04
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approx
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0.17
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0.17
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Asset impairment
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0.07
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—
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approx
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0.07
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0.07
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Deal related costs and expenses
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|
0.02
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|
|
—
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|
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approx
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0.02
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0.02
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Inventory step-up
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0.01
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|
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—
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approx
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0.01
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0.01
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Corporate allocations
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—
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0.04
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approx
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—
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—
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(Gain) loss on sale of business
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(0.02
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)
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0.02
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|
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approx
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|
(0.02
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)
|
|
(0.02
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)
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Interest expense adjustment
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|
—
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|
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0.03
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|
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approx
|
|
—
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|
|
—
|
|
Income tax adjustments
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|
—
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|
|
0.01
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|
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approx
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—
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|
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—
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Diluted earnings per ordinary share—as adjusted
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$
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0.43
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$
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0.49
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approx
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$
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2.30
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$
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2.35
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|
Pentair plc and Subsidiaries
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Reconciliation of Net Sales Growth to Core Net Sales Growth by
Segment
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For the Quarter Ending March 31, 2019 and Year Ending December
31, 2019 (Unaudited)
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Preliminary
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|
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Forecast
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|
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Q1 Net Sales Growth
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|
|
Full Year Net Sales Growth
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|
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Core
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Currency
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Acq. /
Div.
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|
|
Total
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Core
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Currency
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Acq. /
Div.
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|
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Total
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Total Pentair
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|
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approx
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|
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(4
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)%
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(1
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)%
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|
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(1
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)%
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|
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(6
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)%
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|
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0 - 1 %
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|
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(1
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)%
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|
|
2
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%
|
|
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1 - 2 %
|
|
|
|
|
|
|
|
|
|
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View source version on businesswire.com:
https://www.businesswire.com/news/home/20190409005393/en/
Jim Lucas
Senior Vice President, Investor Relations and Treasurer
Direct:
763-656-5575
Email: jim.lucas@pentair.com
Rebecca Osborn
Senior Manager, External Communications
Direct:
763-656-5589
Email: rebecca.osborn@pentair.com
Source: Pentair plc