Public utility markets support revenues at Xylem in Q2
Xylem has reported a fall in net income of five per cent to $71 million in the second quarter of 2016, reflecting debt refinancing costs and higher restructuring and realignment charges. Revenue was up one per cent to $932 million, helped by a robust public utility market globally, and particularly in the US.
The water infrastructure segment reported operating income up 8 per cent to $70 million in the second quarter, helped by cost savings and efficiencies of scale. Revenue for the segment grew by three per cent to $566 million, reflecting strength in public utility markets, particularly in the US, and projects in emerging markets, notably India. Public utilities offset weakness in industrial markets, particularly oil and gas in North America, and mining globally.
The applied water segment reported operating income of $51 million, which was flat year-on-year, on revenue that fell by 1 per cent to $366 million.
"We are continuing to build a compelling track record of growth that reflects a strong focus on elevating our execution, and driving productivity to expand margins. We continued to capitalise on robust growth in the global public utility sector, which helped to offset softness in the industrial market. Our teams also delivered strong performance in executing against our productivity initiatives," said Patrick Decker, president and chief executive, Xylem.
Xylem's water infrastructure segment consists of businesses that offer clean water delivery, wastewater transport and treatment, dewatering, and analytical instrumentation. The applied water segment comprises residential and commercial building services, and industrial and agricultural applications.