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เกรดวัดแรงดัน Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove robust natural orders growth: 1% on a reported
basis, 6% organically
• Revenue of $1.four billion, up 1% on a reported basis, up 6% organically
• Earnings per share of $0.sixty two, adjusted earnings per share of $0.66
• Adjusted EBITDA margin exceeded steering by 160 foundation factors
• Raising full-year natural income guidance to a variety of 8% to 10% from 4% to
6%, and adjusted EPS to a spread of $2.50 to $2.70 from $2.forty to $2.70
Washington, D.C., August 2, 2022 – Xylem Inc. (NYSE: XYL), a leading world water technology
firm dedicated to fixing the world’s most challenging water points, at present reported second quarter
revenue of $1.four billion, surpassing earlier steering in every enterprise phase. Strong continued
world demand drove orders and backlog growth throughout the portfolio.
Second quarter adjusted earnings earlier than interest, tax, depreciation and amortization (EBITDA) margin
was 16.6 %, better than the Company’s earlier steering and reflecting a year-over-year
lower of 70 basis points. Inflation and the impact of constant chip shortages drove the margin
decline, exceeding the advantages of worth realization and productivity financial savings. Xylem generated net
revenue of $112 million, or $0.62 per share, and adjusted internet income of $120 million, or $0.sixty six per share,
which excludes the impact of restructuring, realignment and particular expenses.
“The team delivered very strong second quarter efficiency on all key metrics, and properly ahead of our
steerage for the quarter,” mentioned Patrick Decker, Xylem president and CEO. “The outcome reflects our
commercial momentum on persevering with underlying demand, disciplined operational execution, and a
average easing in chip provide constraints.”
“On the strength of robust backlog and orders growth, and the team’s demonstrated success mitigating
the effects of inflation, we are raising our full-year steering on revenue and earnings. This further
reinforces our longer-term progress and worth creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 organic income growth to be in the range of 8 to 10 p.c, and three
to 5 p.c on a reported basis. This represents a rise from the Company’s previous full-year
organic income steerage of 4 to six %, and 1 to three % on a reported foundation. Full-year 2022
adjusted EBITDA margin is now expected to be within the vary of sixteen.5 to 17.zero %, elevating the low end
of the earlier range of sixteen.0 to 17.0 percent. This leads to adjusted earnings per share of $2.50 to
$2.70, raising the low finish from the previous vary of $2.forty to $2.70. The elevated steering displays
sturdy demand, gradual easing of provide chain constraints and price realization partially offset by
inflation and foreign trade headwinds.
Further 2022 planning assumptions are included in Xylem’s second quarter 2022 earnings materials
posted at www.xylem.com/investors. Excluding income, Xylem supplies steerage only on a non-GAAP
basis because of the inherent issue in forecasting certain quantities that may be included in GAAP
earnings, similar to discrete tax objects, without unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure phase consists of its portfolio of companies serving clear water
supply, wastewater transport and treatment, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.0 percent enhance
organically in contrast with second quarter 2021. This sturdy development was driven by strong price
realization, industrial dewatering demand, and wholesome activity in our wastewater utility business
in the U.S. and Western Europe.
• Second quarter adjusted EBITDA margin was 21.four p.c, up 240 basis factors from the prior
year. Reported operating revenue for the phase was $108 million. Adjusted operating earnings
for the phase, which excludes $3 million of restructuring and realignment, was $111 million, a
14.4 p.c improve versus the comparable interval last 12 months. Reported operating margin for
the section was 18.three %, up 200 foundation factors versus the prior year, and adjusted
operating margin was 18.8 %, up one hundred eighty basis factors versus the prior year. Strong worth
realization, volume, and productivity financial savings greater than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water segment consists of its portfolio of companies in industrial, industrial building,
and residential functions.
• Second quarter 2022 Applied Water income was $429 million, a 7.zero percent increase
organically year-over-year. The segment delivered sturdy value realization and backlog
execution in industrial and residential finish markets, partially offset by continued supply chain
constraints in business buildings within the United States.
• Second quarter adjusted EBITDA margin was sixteen.1 %, down one hundred thirty foundation factors from the
prior 12 months. Reported operating earnings for the section was $61 million and adjusted working
income, which excludes $2 million of restructuring and realignment costs, was $63 million, a four.5
p.c lower versus the comparable interval last year. The section reported working
margin was 14.2 %, down one hundred thirty foundation factors versus the prior year period. Adjusted
working margin declined a hundred and twenty foundation points to 14.7 %. Strong worth realization and
productivity financial savings were more than offset by inflation and decrease volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions segment consists of its portfolio of companies in sensible
metering, community technologies, superior infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions income was $346 million, down 2.0
% organically versus the prior yr. While chip supply remains constrained, the result’s
better than our expectations due to improved chip provide in the quarter, and power in our
water quality test functions.
• Second quarter adjusted EBITDA margin was 9.8 percent, down 410 basis points from the prior
year. Reported working revenue for the segment was $(5) million, and adjusted working
earnings, which excludes $3 million of restructuring and realignment costs and $1 million of
shortages, unfavorable mix and better inflation greater than offset price realization and
productivity financial savings.
Supplemental info on Xylem’s second quarter 2022 earnings and reconciliations for sure nonGAAP gadgets is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a leading world water know-how company dedicated to solving critical water and
infrastructure challenges with innovation. Our 17,000 various employees delivered revenue of $5.2
billion in 2021. We are making a more sustainable world by enabling our clients to optimize water
and resource management, and serving to communities in more than 150 countries become watersecure. Join เพชเชอร์เกจ at www.xylem.com.
Forward-Looking Statements
This press release accommodates “forward-looking statements” inside the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Generally, the words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
“potential,” “may” and comparable expressions or their negative, could, however usually are not essential to, determine
forward-looking statements. By their nature, forward-looking statements handle uncertain matters and
embrace any statements that aren’t historic, similar to statements about our strategy, financial plans,
outlook, goals, plans, intentions or targets (including those associated to our social, environmental and
other sustainability goals); or tackle potential or future outcomes of operations or financial performance,
together with statements relating to orders, revenues, operating margins and earnings per share development.
Although we believe that the expectations reflected in any of our forward-looking statements are
affordable, actual results may differ materially from these projected or assumed in any of our forwardlooking statements. Our future monetary situation and outcomes of operations, as nicely as any forwardlooking statements, are topic to vary and to inherent dangers and uncertainties, a lot of that are
past our management. Additionally, many of these dangers and uncertainties are, and will continue to be,
amplified by impacts from the struggle between Russia and Ukraine, as well as the ongoing coronavirus
(“COVID-19”) pandemic and associated macroeconomic circumstances (including inflation). Important elements
that would trigger our actual results, efficiency and achievements, or trade results to differ
materially from estimates or projections contained in or implied by our forward-looking statements
embrace, amongst others, the following: the impression of total business and basic economic situations,
including industrial, governmental, and public and private sector spending and the energy of the
residential and industrial real property markets, on financial activity and our operations; geopolitical
events, including the war between Russia and Ukraine, and regulatory, financial and different risks
related to our world sales and operations, together with with respect to domestic content
requirements applicable to projects with governmental funding; continued uncertainty around the
ongoing COVID-19 pandemic’s magnitude, duration and impacts on our enterprise, operations, growth,
and financial situation; precise or potential different epidemics, pandemics or international health crises;
availability, scarcity or delays in receiving digital elements (in specific, semiconductors), parts,
and raw materials from our provide chain; manufacturing and operating price will increase as a result of
macroeconomic situations, including inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing price changes, tariffs and other factors; demand for our products; disruption,
competition or pricing pressures within the markets we serve; cybersecurity incidents or other disruptions of
info expertise systems on which we rely, or involving our merchandise; disruptions in operations at
our amenities or that of third events upon which we rely; capacity to retain and attract senior management
and other numerous and key expertise, as properly as competition for total talent and labor; issue predicting
our financial outcomes; defects, safety, guarantee and legal responsibility claims, and remembers with respect to merchandise;
availability, regulation or interference with radio spectrum used by sure of our merchandise; uncertainty
related to restructuring and realignment actions and associated costs and savings; our capacity to proceed
strategic investments for development; our capability to successfully identify, execute and integrate acquisitions;
volatility in served markets or impacts on enterprise and operations because of weather conditions, together with
the results of climate change; fluctuations in overseas foreign money change charges; our capacity to borrow or
refinance our existing indebtedness and uncertainty around the availability of liquidity adequate to satisfy
our wants; threat of future impairments to goodwill and different intangible assets; failure to comply with, or
modifications in, legal guidelines or rules, together with these pertaining to anti-corruption, information privateness and safety,
export and import, competition, and the environment and local weather change; adjustments in our effective tax
rates or tax expenses; legal, governmental or regulatory claims, investigations or proceedings and
related contingent liabilities; and other elements set forth beneath “Item 1A. Risk Factors” in our Annual
Report on Form 10-K for the yr ended December 31, 2021 and in subsequent filings we make with
the Securities and Exchange Commission (“SEC”).
Forward-looking and different statements on this press launch regarding our environmental and different
sustainability plans and targets are not a sign that these statements are necessarily material to
investors or are required to be disclosed in our filings with the SEC. In addition, historic, current, and
forward-looking social, environmental and sustainability associated statements could also be based on standards
for measuring progress that are still developing, inner controls and processes that proceed to evolve,
and assumptions which are subject to alter in the future. All forward-looking statements made herein
are based on info at present available to us as of the date of this press launch. We undertake no
obligation to publicly update or revise any forward-looking statements, whether on account of new
information, future events or in any other case, besides as required by legislation
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