Xylem sees “strong double-digit” growth in first quarter of 2018
Global water technology company Xylem Inc. saw a strong start to 2018, revealing last week that it achieved “double-digit” growth over the 3-month period. The company is poised to become ever more relevant due to the convergence of two trends: a warming planet, and an increasing global population. As increasing pressure is put on the global water source, the kind of technology Xylem is responsible for – which ranges from infrastructural solutions through to water measurement techniques and water recycling technology – will become a crucial component in humanity’s survival.
Xylem’s share price is up by 34% over the past 12 months
Source: Yahoo Finance
The company delivered adjusted net income of $93 million for the first quarter of the year – that boils down to earnings of $0.51 per share, an impressive 31% higher than the same period in the previous year.
It also forged higher in regards to revenue, bringing in $2.1 billion. That’s 14% better than the first quarter of 2017 (when adjusted for currency fluctuations and acquisitions). On an organic basis, growth hit 7% year-on-year, driven largely by a good performance in the utilities and industrial end markets “in nearly every geography”, and ongoing “solid growth” in the commercial and residential markets.
The company’s CEO, Patrick Decker, was delighted with the company’s performance, and made the following comment: “Focused execution and increased collaboration by our teams resulted in a strong start to 2018. We delivered another consecutive quarter of strong growth in revenue, orders and backlog, which sets us up for a solid year ahead. We're encouraged by the continuing momentum we see in both the utilities and industrial end markets, where we are capturing share. In addition, our growing portfolio of advanced technologies is opening up new opportunities to expand our relationship with current customers and cultivate new ones.”
“We continue to successfully execute against our productivity plans, which is helping to fund our growth initiatives and mitigate inflation. Looking ahead, we have strong confidence in our plans to drive continued profitable growth as we deepen our customer relationships and partnerships.”
Dominion holds Xylem Inc. in its Global Trends Managed Fund.
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