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$XYL General Update: Xylem Inc. a leading global water technology company dedicated to solving the world’s most challenging water issues, congratulates Perry Alagappan of Houston, Texas, as 2015 winner of the United States Stockholm Junior Water Prize (SJWP), the world’s most prestigious youth award for water-related science and technology projects
$XYL agreed to buy Pure Technologies Ltd. for an enterprise value of $397MM. Pure's BoD has unanimously approved the transaction and recommends that Pure shareholders vote in favor of the transaction. It is expected to close in 1Q18. Xylem expects to achieve at least $12MM in annual cost synergies within two years of closing.
Water technology company $XYL has named Matthew Latino Director of Investor Relations, effective immediately. Latino, who had hitherto been serving as Manager of Investor Relations, will continue to report to CFO Mark Rajkowski. Latino joined Xylem as Manager of Financial Reporting in 2012, and was named Manager of Investor Relations in 2015.
$XYL appointed Colin Sabol as its SVP and President of Sensus & Analytics, effective Oct. 1, 2017. Sabol succeeds Randy Bays, who will move into an advisory role with a focus on Xylem's global manufacturing operations. Both will report to Xylem President and CEO, Patrick Decker.
$XYL secured contracts worth $4.8MM to supply ultraviolet (UV) disinfection solutions to two major drinking water plants in Ohio. The energy-efficient UV technologies will be used to provide a treatment barrier for Cryptosporidium at the Dublin Road Water Plant and Hap Cremean Water Plant. Construction at both plants is expected to begin in 2018.
During 2Q17, $XYL's revenue from the US was flat YoY, as the strength in residential and commercial was offset by the softness in public utility. Western Europe reported 3% fall in revenue. Emerging markets reported 7% growth in revenue during the quarter.
$XYL reported 41% rise in its 2Q17 earnings, helped by increased revenue. Net earnings rose to $100MM, or $0.55 per share, compared to $71MM, or $0.39 per share during 2Q16. Revenues rose 25% YoY to $1.2Bil. This rise was mainly due to contribution by Sensus business, that was acquired in 2016. Excluding items, $XYL earned $0.59 per share.
$XYL secured a contract to supply its advanced Wedeco LBX Series UV disinfection system to heighten protection against cryptosporidium at the City of West Palm Beach Water Treatment Plant, the first plant in Florida to add UV disinfection.
$XYL delivered $1.1Bil in 1Q17 revenue, up 26% year-over-year including the impact of acquisitions. Net income fell to $56MM or $0.31 per diluted share from $66MM or $0.37 per diluted share, as operating margin declined 130 basis points to 8%.
$XYL continues to project FY17 adjusted operating margin to be in the range of 13.2-13.7%, resulting in adjusted EPS of $2.20-$2.35. This represents an increase of 8 to 16% from year-over adjusted results. Excluding items, Xylem’s EPS growth is anticipated to be in the range of 12-20%.