Tuesday, diversified operating company Pentair, Inc. (PNR) reported a 12% decline in earnings from continuing operations for third quarter hurt by a 23% decline in sales. The company initiated guidance for the fourth quarter and revised its earnings forecast for fiscal 2009.
Net earnings from continuing operations attributable to Pentair declined to $37.03 million from $42.9 million in the corresponding period last year. Net earnings per share from continuing operations declined 12% to $0.38 from $0.43 per share a year earlier.
Results for the quarter included a charge of $0.04 per share related to restructuring charges. Adjusting for these items, earnings were $0.42 per share, compared to adjusted third quarter 2008 earnings of $0.56 per share, a decrease of 25 percent.
On average, fourteen analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.
Total sales slid 23% to $663 million from $856 million in the same period last year. Twelve Street analysts expected the company to report sales of $680.14 million for the quarter.
The Water Group sales were $462 million, down 17% from $557.98 million in the same period last year. Sales declined 16% excluding foreign exchange. Technical Products sales were $201 million, a decrease of 32% compared to $297.84 million in the same period last year. Sales were down 31% excluding the impact of foreign exchange.
For the nine-month period, net income from continuing operations plunged to $86.3 million or $0.89 per share from $235.2 million or $2.29 per share in the corresponding period last year. Net sales declined to $1.99 billion from $2.58 billion in the same period last year.
Looking ahead, the company expects net earnings for the fourth quarter in the range of $0.37 to $0.41 per share. Adjusting for non-recurring items fourth quarter adjusted earnings are expected to be between $0.40 and $0.44 per share, essentially flat with the year ago quarter. Sales are expected to be down approximately 14 percent. Analysts currently expect the company to earn $0.43 per share on sales of $683.37 million.
The company revised its full year reported 2009 earnings guidance to $1.25 to $1.29 per share, which would be down about 50% when compared to reported full year 2008 earnings per share of $2.31 per share. Adjusting for non-recurring items in both years, full year adjusted 2009 earnings is expected to be $1.40 to $1.44 per share or down approximately 35% from $2.20 recorded in the previous year.
On September 3, the company reaffirmed and said net earnings from continuing operations for 2009 would meet or exceed $1.40 per share. While reporting its second quarter financial results earlier in July, the company indicated full-year 2009 earnings on both a reported and adjusted basis to be comparable, as restructuring and other charges in 2009 were expected to be similar in size to anticipated gains from other non-recurring items.
For fiscal 2009, analysts presently expect the company to earn $1.42 per share on sales of $2.69 billion.
Commenting on the results Randall Hogan, Pentair chairman and chief executive officer said, "We continue to benefit from our cost actions and remain committed to our full year outlook. Additionally, with our strong free cash flow generation and the investments we have maintained in product innovation and sales and marketing we believe the company remains in an excellent position to benefit as markets recover."
PNR is currently down $1.80 or 5.35% and trades at $31.83.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.