Pentair plc (NYSE:PNR) Q4 2015 Earnings Conference Call - Preliminary Transcript

Feb 02, 2016 • 09:00 am ET


Pentair plc (NYSE:PNR) Q4 2015 Earnings Conference Call - Preliminary Transcript


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Good morning. My name is Jordan and I'll be your conference operator today. At this time, I would like to welcome everyone to the Pentair Q4 2015 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question and answer session. If you would like to ask a question during this time, [Operator Instructions] Thank you, Jim Lucas, you may begin your conference.

James C. Lucas

Thanks, Jordan, and welcome to Pentair fourth quarter 2015 earnings conference call. We're glad you could join us today. I'm Jim Lucas, Vice President of investor relations and strategic planning. With me today is Randy Hogan, our chairman and chief executive officer and John Stafford Chief Financial Officer.

On today's call, we will provide details on our fourth quarter 2015 performance as well as our first quarter and full year 2016 outlook as outlined in this morning's release. Before we begin, let me remind you that any statements made about the company's anticipated financial results or forward looking statements subject to future risks and uncertainties.

Such as the risks outlined in printers most recent 10 K and today's release, forward looking statements included here in are made as of today. 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.

Today's webcast is accompanied by a presentation which can be found in the investor section of 10. Tears website. We will reference these slides throughout our prepared remarks. Any references to non GAAP financials are reconciled in the appendix of the presentation. We will be sure to reserve time for questions and answers after our prepared remarks.

I would like to request that you limit your questions to one and a follow up and get back in the queue for further questions. In order to ensure everyone has an opportunity to ask their questions.

I will now turn the call over to Randy.

Unidentified Speaker

Thanks, Jim. And good morning, everyone. I'll start with the executive summary on page 4. There's no doubt that 2015 was a challenging year for Pentair and most other industrial companies. But we were encouraged that our fourth quarter results met our expectations. operationally, overall earnings came in higher than forecast due to a better ongoing tax rate. And our ability to forecast sales demonstrates that the quarter to quarter volatility in some of our serve markets may finally be showing signs of stabilizing.

While our businesses serving the energy and industrial markets will likely face continued challenges in 2016, the two bright spots in 2015 food and beverage and residential commercial appear to still have more upside. In addition, we've finally seen signs of stabilization and some green shoots of growth within our smallest vertical infrastructure.

We understand why valve controls has been a focus and many of our investors as our efforts to right size the business in the face of the significant energy in