Rye Brook, N.Y — February 5th, 2015
Xylem Inc. (NYSE: XYL), a leading global water technology company dedicated to solving the world's most challenging water issues, today reported fourth quarter 2014 net income of $96 million, or $0.52 per share. Excluding the impact of restructuring, realignment and other special charges, the Company delivered adjusted net income of $114 million or $0.62 per share in the quarter, an 11-percent increase over the comparable period in 2013. Fourth quarter organic revenue grew 6 percent to $1.04 billion, reflecting stronger results from emerging markets and the U.S., as well as across all end markets. Fourth quarter adjusted operating margins improved 70 basis points, driven by higher volume and the impact of efficiency measures undertaken throughout the year.
For the full year 2014, Xylem generated $3.92 billion in revenue, an organic increase of 3 percent over 2013. Full-year reported net income was $337 million, or $1.83 per share, with an operating margin of 11.8 percent. Adjusted net income, which excludes the impact of restructuring, realignment and other special items, was $362 million or $1.97 per share. Xylem delivered a full-year 2014 adjusted operating margin of 12.9 percent. Free cash flow was $297 million, up 50 percent versus last year.
"Xylem delivered strong results in the fourth quarter, closing out 2014 with a clear strategic focus, stronger execution and a renewed drive in research and innovation," said Patrick Decker, president and chief executive officer of Xylem. "We generated growth in each of our key regions in the fourth quarter, with notably strong results in China and the emerging markets in general. Solid growth in the U.S. and more effective execution across the company helped us to mitigate slower growth in Europe."
Decker continued, "During 2015, we will continue to strengthen critical organization capabilities in the areas of commercial excellence, innovation and technology, and emerging markets in order to accelerate Xylem's growth. Our commitment to building a continuous improvement culture across the organization will drive efficiencies and enable us to continue to expand margins and reinvest for growth in our business. Our core fundamentals are strong and our 2015 plan tracks well with our long-term commitments to grow the company and our shareholders' return."
Xylem today also announced that its Board of Directors declared a dividend in the amount of $0.1408 per share for the first quarter of 2015, an increase of 10 percent. The dividend is payable on March 18, 2015 to shareholders of record as of February 18, 2015.
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Founded in 1992 and advancing environmental science globally, SonTek manufactures acoustic Doppler instrumentation for water velocity measurement in oceans, rivers, lakes, harbors, canals, estuaries, industrial pipes and laboratories. SonTek's sophisticated and proprietary technology serves as the foundation for some of the industry's most trusted flow data collection systems such as the FlowTracker, the RiverSurveyor and more recently, the SonTek-IQ. SonTek is located in San Diego, California, and is a division of Xylem.
Xylem (XYL) is a leading global water technology provider, enabling customers to transport, treat, test and efficiently use water in public utility, residential and commercial building services, industrial and agricultural settings. The company does business in more than 150 countries through a number of market-leading product brands, and its people bring broad applications expertise with a strong focus on finding local solutions to the world's most challenging water and wastewater problems. Xylem is headquartered in Rye Brook, New York, with 2014 revenues of $3.9 billion and approximately 12,500 employees worldwide. Xylem was named to the Dow Jones Sustainability Index for the last four years for advancing sustainable business practices and solutions worldwide and the Company has satisfied the requirements to be a constituent of the FTSE4Good Index Series each year since 2013.
The name Xylem is derived from classical Greek and is the tissue that transports water in plants, highlighting the engineering efficiency of our water-centric business by linking it with the best water transportation of all – that which occurs in nature. For more information please visit us at www.xyleminc.com.