Pentair reports tough third quarter but beats expectations

The continued slump in oil and industrial sectors again hit Pentair PLC's quarterly results, prompting a drop in sales and profits and a narrowed forecast for the full year.

Pentair, which is based in Manchester, England, but managed largely from Golden Valley, said Tuesday that negative currency translations also affected the quarter.

Total sales fell 12 percent to $1.6 billion, while operating earnings declined 16 percent to $249 million. Excluding discontinued items and including tight cost management, adjusted earnings were 97 cents a share, which beat Wall Street expectations.

Analysts had expected earnings of 95 cents a share and sales of $1.59 billion. Pentair shares Tuesday were down 83 cents, or 1.5 percent, to close at $54.38.

Pentair, which makes pumps, water and industrial filtration systems and valves for the energy industry, has been affected for several quarters by sagging oil prices and mining woes that halted new drilling and projects across the globe.

During the quarter, sales fell in the double digits for valves and control, mining and industrial products. Sales of flow, filtration, and home and food water control systems saw single-digit declines.

While results were down, they beat the company's internal expectations, officials said.

"Our third-quarter results were in line with our previously communicated expectations as three of our four segments delivered solid margin improvement," he said. "Our sales into the residential and commercial and food and beverage verticals remained healthy as we continued to face ongoing challenges in the energy and industrial verticals. We continue to drive productivity and adjust our cost structure aggressively as we manage these ongoing challenges,"

Pentair tightened its 2015 forecasts and now expects adjusted earnings of $3.84 to $3.86 per share, compared with the previous guidance of $3.80 to $3.90 per share.