Xylem Inc. (NYSE:XYL) Q4 2014 Earnings Conference Call - Final Transcript

Feb 05, 2015 • 09:00 am ET


Xylem Inc. (NYSE:XYL) Q4 2014 Earnings Conference Call - Final Transcript


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Welcome to the Xylem Fourth Quarter and Full Year 2014 Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Phil De Sousa, Vice President of Investor Relations.

Phil De Sousa

Thank you, Maria, and good morning, everyone. And welcome to Xylem's Fourth Quarter 2014 Earnings Conference Call. With me today are Chief Executive Officer, Patrick Decker; and Chief Financial Officer, Michael Speetzen. They will provide their perspective on Xylem's fourth quarter and full year 2014 results and discuss the full year outlook for 2015.

Following our prepared remarks, we will address questions related to the information covered on the call. [Operator Instructions] We anticipate that today's call will last approximately 1 hour. As a reminder, this call and our webcast are accompanied by a slide presentation available in the Investors section of our website at www.xyleminc.com. A replay of today's call will be available until midnight on February 19. Please note the replay number is (800) 585-8367 and the confirmation code is 61161428. Additionally, the call will be available for playback via the Investors section of our website under the heading Presentations.

All references today will be on an adjusted basis, unless otherwise indicated

Phil De Sousa

and non-GAAP financials are reconciled for you in the Appendix section of the presentation.

With that said, please turn to Slide 2. (Forward Looking Cautionary Statements). Now please turn to Slide 3, and I will turn the call over to our CEO, Patrick Decker.

Patrick K. Decker

Good morning, everyone. Thank you, all, for joining us today. This morning I'll review the highlights of our fourth quarter and full year 2014 results and provide a brief update on some of our major initiatives. Mike will provide additional details, and then we'll discuss our 2015 outlook. So let's get started.

We closed out 2014 strong. The renewed focus on execution across our organization helped us to generate solid organic top line growth, the sixth consecutive quarter of margin expansion as well as double-digit earnings growth. And I point out, that these results were achieved in environment with strong foreign exchange headwinds and a mixed economic environment, conditions that we anticipate will continue throughout 2015.

I'm pleased with our progress but we are in the early stages of our journey. We continue to operate in an uncertain global macroeconomic environment. We are encouraged by the bright spots such as an improving U.S. market and solid opportunities in several emerging markets, where we are poised to continue to grow and take share. But there remain many challenges, the most significant being the uncertainty in Europe, given both the political and economic headwinds the region faces.

We are also keenly aware of, and closely monitoring, the currency markets, as foreign exchange translation does have a disproportionate effect on our reported results. But let me be clear, this will not be a distraction for us. We remain focused on the factors we can control, such as driving growth in our core business and operational improvements to drive out cost.

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