Wednesday, July 25, 2007
Jul. 25, 2007 (McClatchy-Tribune Regional News delivered by Newstex) --
Rising material costs, sagging technical product sales and a tough housing sector cut Pentair (NYSE:PNR) Incorporated's second-quarter earnings by 10 percent to $62 million, or 62 cents a share. The results still beat analysts' expectations by 4 cents a share.
Officials at the Golden Valley-based water filtration equipment maker said the consolidation in the telecommunications industry and softening in North America's pool and spa equipment market were anticipated. Strong industrial water equipment sales only partially offset residential declines.
Analysts noted that second-quarter 2006 results included a one-time tax benefit of 8 cents per share. Excluding that special item, earnings year over year grew 3 cents a share.
Pentair officials said they now expect third-quarter earnings to increase about 50 percent from a year ago to 48 to 51 cents a share and full-year 2007 earnings to hit $2 to $2.05 a share, up from the prior full-year guidance of $2 a share.
Sales grew significantly in Europe and Asia, with notable improvements in Australia and in China. Companywide sales grew 7 percent to a record $923 million from a year ago.
Officials said that productivity gains, volume and mix improvements helped profit margins somewhat, but 'could not offset the impact' of higher materials and labor costs.
CEO Randy Hogan praised the company's quarter and diversified markets for helping to combat the softness in new home construction and telecommunications markets.
Dee DePass -- 612-673-7725 --
ddepass@startribune.com 2nd quarter FY2007, 6/30
2007 2006 % chg.
Revenue $922.6 $862.0 +7.0
Cont. ops. 62.0 68.6 -9.7
Disc. ops 0.1 -- --
Income 62.1 68.6 -9.6
Earn/share 0.62 0.67 -7.5
6 months
Revenue $1,730.6 $1,633.4 +6.0
Cont. ops. 104.1 111.7 -6.8
Disc. ops 0.2 -1.5 --
Income 104.3 110.3 -5.4
Earn/share 1.04 1.08 -3.7
Figures in millions except for earnings per share.
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