Currency woes and the continued slowdown in the global oil and gas sector pushed Pentair PLC's sales and profits lower in the second quarter.
As a result, executives lowered their revenue forecast for the rest of the year. CEO Randy Hogan said the company expects sales to fall 8 to 9 percent in 2015 to about $6.4 billion. It previously forecast sales of $6.5 billion.
Pentair's stock fell $2.48 a share Tuesday to close at $61.60. A year ago, the stock was trading above $73.
Pentair, the pump, valve and filtration giant that is incorporated in Ireland with its main U.S. offices in Golden Valley, said revenue fell 9 percent and profits from continuing operations fell 3 percent for the quarter ending June 27.
Negative currency translations stemming from the high U.S. dollar snipped 7 percent from revenue, while slowing product sales clipped another 2 percent.
Valve and control product sales were particularly hammered by lower prices and orders for oil and gas equipment.
"We exited the quarter with increased concerns about our Valves and Controls segment," said Hogan in a conference call with Wall Street analysts. "We now have a more cautious outlook on spending in energy and industrial, and the ability of our valves and controls segment to navigate this more difficult environment in 2015."
Pentair's pumps and filtration products aimed at residential and commercial customers also were stung by difficult economic conditions.
Food and beverage flow products and water-quality equipment sales were the two areas to see meaningful sales gains for the three-month period.
Overall, second quarter revenue fell to $1.66 billion from $1.8 billion in the same period a year ago. Still, sales beat the $1.64 billion expected by analysts.
Net profit amounted to $148 million, or 81 cents a share. In the same quarter a year ago, net income was $161.5 million, or 82 cents a share. Excluding discontinued items and other one-time expenses, adjusted operating earnings fell 12 percent to $245 million, or 96 cents a share, down 6 percent from the year-ago quarter but a penny better than Wall Street analysts expected.
"We had a solid quarter, but we are not satisfied with our results," Hogan said in a statement. "Many of our served markets, especially those in energy and industrial, remain challenged and we do not expect them to recover in the second half of the year. We will continue to aggressively manage our cost structure and drive productivity to work through our near-term challenges."
In its updated 2015 guidance, Pentair said it now expects adjusted earnings of $3.80 to $3.90 a share, excluding 45 cents per share of noncash amortization. Previously, the company's guidance was $3.80, including 45 cents per share of noncash amortization.
The company reported per-share profit of $4.23 in 2014.