WaterTreatmentChina.com

GOLDEN VALLEY, MN — Pentair Inc., headquartered here, announced in a July 22 press release financial results for its second quarter, showing sales in its Water Group down 6 percent compared to the same period last year, much of that due to weakness in the North American housing market. However, overall company results were generally positive, especially in markets outside North America, according to the statement.

The company announced net earnings per diluted share from continuing operations (EPS) of $1.39, compared with the $0.61 of reported EPS from continuing operations in the second quarter of 2007.

“Current period results include an 86 cents per share gain from the transaction with GE Water & Process Technologies, a unit of General Electric Co., to combine residential water filtration businesses as well as a negative $0.14 per share impact from the Horizon settlement, and a $0.01 per share negative impact from restructuring charges. Adjusting for these items, second quarter 2008 EPS was $0.68, up 11 percent year over year,” the company said.

Total company sales increased 1 percent to $910 million, compared with $899 million in the second quarter of 2007. The company delivered second quarter-operating income of $95 million. On an adjusted basis, the company delivered operating income of $118 million versus $113 million in the year-ago quarter, according to the press release.

“The Water Group delivered $605 million in sales, down 6 percent year over year. Organic sales were down 9 percent excluding foreign exchange, driven by continuing softness in the North American residential markets and aggressive inventory reductions in pool equipment distribution. Internationally, water sales increased at a double-digit rate,” the company release said.

According to Pentair:

● Sales of pump equipment for global commercial, municipal and agricultural markets continue to outpace declines in North American residential markets.

● Global Filtration sales grew 8 percent, or 5 percent excluding the 2007 acquisition of Porous Media. Steady gains in industrial filtration, food service and desalination markets offset declines in the North American residential market.

● Global Pool and Spa sales were down 22 percent. The prolonged decline in North American residential pool and spa markets, coupled with distributor inventory reductions, impacted sales.

The Water Group's second quarter reported operating income totaled $58 million, down 65 percent as compared to $89 million in the same period last year. In the quarter, the company settled the Horizon lawsuit, which resulted in a $20 million charge to operating income. In that case, Pentair was ordered in mid-2007 to pay Celebrity Cruise Lines, Inc. $15.2 million for profits the cruise ship company claimed it lost in 1994-95 during an outbreak of Legionnaire’s disease on one of its ships at that time, as WaterTech Online™ reported. Adjusting for this and other items, adjusted operating income was $81 million, down 10 percent versus the $89 million a year ago.

Pentair also said in its press release that the company recently announced changes for three international and three United States water segment factories. The production at the soon-to-close factories will shift to Mexico, China and other United States facilities, the company said.

As WaterTech Online reported on July 23, Pentair announced it is closing its Sheboygan, WI, water treatment equipment manufacturing plant.

Additionally, the company said it plans to embark on an operational restructuring plan associated with its Spa/Bath business.