(RTTNews) - Tuesday, diversified operating company Pentair, Inc. (PNR: News ) 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.

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