Tuesday, Pentair Inc. (PNR) reported a drop in its profit for the second quarter, reflecting lower sales and an absence of a one-time gain from the sale of interest in subsidiaries. In addition, the company provided forecast for the third quarter and maintained its full-year earnings outlook.
Net income attributable to the company plummeted to $31.93 million or $0.33 per share from $138.735 million or $1.40 per share last year. Net income from continuing operations attributable to Pentair Inc. fell to $32.01 million or $0.33 per share from $139.84 million or $1.41 per share a year ago.
Pentair said that the current quarter included a charge of $0.02 per share from restructuring and a charge of $0.03 per share from the early redemption of bonds, while the year-ago quarter comprised a gain on sale of interest in subsidiaries, totaling $109.65 million.
Adjusted earnings per share were $0.38, lower than $0.70 in the previous year. On average, 13 analysts polled by Thomson Reuters expected earnings per share of $0.39. Analysts' estimate typically exclude one-time items.
Second-quarter net sales dropped to $693.71 million from $898.38 million in the prior year quarter. Eleven analysts estimated revenues of $705.28 million.
For the six-month period, net income attributable to the company dipped to $49.19 million or $0.50 per share from $183.025 million or $1.84 per share last year.
Half-year net sales also declined to $1.33 billion from $1.73 billion in the comparable period.
Looking ahead to the third quarter, earnings per share are expected to be in the range of $0.32 to $0.42. Adjusting for charges associated with new restructuring actions, third-quarter earnings per share is expected between $0.35 and $0.45, with sales to be down over 20%. Analysts expect third-quarter earnings per share of $0.41, on revenues of $687.97 million.
The company still expects full-year 2009 earnings per share guidance to equal or exceed $1.40, while analysts currently foresee full-year earnings per share of $1.41. The company said it expects full-year 2009 earnings per share on both reported and adjusted basis to be comparable, as restructuring and other charges in 2009 are expected to be similar in size to anticipated gains from other non-recurring items.
Total company free cash flow was positive $131 million for the second quarter. Moreover, the company said it expects second-half of 2009 to show continued earnings improvement, as it realizes more benefits from its productivity and cost actions.
Tuesday, the stock is down more than 4% and currently trading at $26.85, on a volume of 435, 855 shares on the NYSE.
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