Pentair Reports Second Quarter 2020 Results

Second quarter sales of $713 million.

Second quarter GAAP EPS of $0.44 and adjusted EPS of $0.59.

The company remains confident in its liquidity position having ended the quarter with $91 million in cash, $1.01 billion of total debt, and $764 million available under its revolving credit facility.

The company provides full year 2020 GAAP EPS guidance of approximately $1.70 to $1.90 and on an adjusted basis of approximately $2.00 to $2.20.

LONDON (STL.News) Pentair plc (NYSE: PNR) today announced second quarter 2020 sales of $713 million. Sales were down 11 percent compared to sales for the same period last year.  Excluding currency translation, acquisitions and divestitures, core sales declined 10 percent in the second quarter.  Second quarter 2020 earnings per diluted share from continuing operations (“EPS”) were $0.44 compared to $0.68 in the second quarter of 2019.  On an adjusted basis, the company reported EPS of $0.59 compared to $0.69 in the second quarter of 2019.  Segment income, adjusted net income, free cash flow and adjusted EPS are described in the attached schedules.

Second quarter 2020 operating income was $111 million, down 17 percent compared to operating income for the second quarter of 2019, and return on sales (“ROS”) was 15.6 percent, a decrease of 110 basis points when compared to the second quarter of 2019.  On an adjusted basis, the company reported segment income of $125 million for the second quarter of 2020, down 19 percent compared to segment income for the second quarter of 2019, and ROS was 17.5 percent, a decrease of 180 basis points when compared to the second quarter of 2019.

Consumer Solutions sales were down 8 percent compared to sales for the same period last year. Excluding currency translation, acquisitions and divestitures, core sales declined 8 percent in the second quarter.  Segment income of $97 million was down 11 percent compared to the second quarter of 2019, and ROS was 24.1 percent, a decrease of 80 basis points when compared to the second quarter of 2019.

Industrial & Flow Technologies sales were down 14 percent compared to sales for the same period last year.  Excluding currency translation, core sales were down 13 percent in the second quarter.  Segment income of $44 million was down 26 percent compared to the second quarter of 2019, and ROS was 14.1 percent, a decrease of 240 basis points when compared to the second quarter of 2019.

Net cash provided by operating activities of continuing operations for the quarter was $429 million compared to $356 million in the second quarter of 2019 and free cash flow provided by continuing operations for the quarter was $417 million compared to $343 million in the second quarter of 2019.

Net cash provided by operating activities of continuing operations in the six months ended June 30, 2020 was $267 million compared to $99 million in the first six months of the previous year and free cash flow provided by continuing operations in the six months ended June 30, 2020 was $236 million compared to $70 million in the first six months of the previous year.

Pentair paid a regular cash dividend of $0.19 per share in the second quarter of 2020.  Pentair previously announced on May 5, 2020 that its Board of Directors approved a 6 percent increase in the company’s regular quarterly cash dividend (to $0.19 from $0.18) that it will pay on August 7, 2020 to shareholders of record at the close of business on July 24, 2020. 2020 marks the 44th consecutive year that Pentair has increased its dividend.

NOTE: this is NOT the complete release.

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