A delayed divestiture and softer industrial sales hurt Pentair's second quarter.
Water equipment sales for pools and food service companies, as well as residential and irrigation business, "grew in the quarter, but this was not enough to offset continued weakness in our engineered pump businesses serving industrial and infrastructure," CEO Randy Hogan told analysts Tuesday after the company released results.
He also said the company's restructuring into two companies — one focused on water filtration, the other on electrical protection and thermal products — remains on track to be completed in the second quarter of 2018.
For the quarter, sales for the pump and filtration company fell 3 percent to $1.27 billion, off slightly from the $1.28 billion analysts expected.
Earnings from continuing operations were $68.3 million, or 37 cents, down from 73 cents for the same period a year ago. Excluding one-time items, adjusted earnings rose 14 percent to $1, which met analysts' consensus expectations.
"The second-quarter performance was in line with our top-line expectations and a little better from an income and adjusted earnings per share standpoint," Hogan said.
Pentair, which is based in England but largely managed from Golden Valley, successfully sold its large Valves and Controls business during the quarter ended June 30, but the sale's delay added costs to the quarter. The proceeds of that $3.1 billion sale to Emerson were used to help reduce Pentair's debt by $3 billion, which Hogan said "significantly strengthened" the company's balance sheet.
With the divestiture completed, the company updated its full year earnings guidance to $2.47 a share ($3.50 excluding one-time items). The previous forecast, which included the Valves and Controls unit, was $2.95 to $3.05 a share. Full-year sales are expected to be flat at $4.9 billion.
Pentair's shares fell 2 percent on Tuesday to close at $63.27.