Pentair Reports Fourth Quarter and Full Year 2020 Results
Pentair plc (NYSE: PNR) reported fourth quarter 2020 sales of $796 million, a 5% increase year-over-year. Adjusted earnings per share (EPS) rose to $0.70 from $0.68 in the same quarter of 2019. Operating income slightly declined by 1% to $122 million, with a 15.3% return on sales (ROS), down 90 basis points from the previous year. The company anticipates 2021 EPS guidance between $2.43 to $2.58 and expects sales growth of 3% to 5%. Pentair also increased its quarterly dividend by 5%, marking its 45th consecutive year of dividend growth.
- 4Q 2020 sales increased by 5% YoY to $796 million.
- Adjusted EPS rose to $0.70 from $0.68 in 4Q 2019.
- Free cash flow for 2020 was $512 million, over 100% of net income projected for 2021.
- Operating income decreased by 1% to $122 million.
- Return on sales declined by 90 basis points to 15.3%.
Pentair plc (NYSE: PNR) today announced fourth quarter 2020 sales of
Fourth quarter 2020 operating income was
Full year net cash provided by operating activities of continuing operations was
Pentair paid a regular cash dividend of
John L. Stauch, Pentair’s President and Chief Executive Officer commented: “I am proud of the entire Pentair organization delivering on its commitments in a uniquely challenging year. Our teams successfully navigated this unprecedented environment and I believe that our company will emerge even stronger as a result. I would also like to take this opportunity to thank all of our global suppliers and channel partners for their patience and efforts in working with us and our consumers to meet our commitments despite the effects of the ongoing pandemic.”
“Our fourth quarter results benefited from continued strength in our Residential focused businesses and we built momentum carrying over into the new year. For 2020, we were very pleased to deliver sales and earnings growth while generating over
OUTLOOK
The company introduces its 2021 GAAP EPS guidance of
In addition, the company introduces first quarter 2021 GAAP EPS from continuing operations guidance of
EARNINGS CONFERENCE CALL
Pentair President and Chief Executive Officer John L. Stauch and Chief Financial Officer Robert P. Fishman will discuss the company’s fourth quarter and full year 2020 results on a two-way conference call with investors at 9:00 a.m. Eastern today. A live audio webcast of the call, along with the related presentation, can be accessed in the Investor Relations section of the company’s website, www.pentair.com, shortly before the call begins.
Reconciliations of non-GAAP financial measures are set forth in the attachments to this release and in the presentations, each of which can be found on Pentair’s website. The webcast and presentations will be archived at the company’s website following the conclusion of the event.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This release contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact are forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “targets,” “plans,” “believes,” “expects,” “intends,” “will,” “likely,” “may,” “anticipates,” “estimates,” “projects,” “should,” “would,” “could,” “positioned,” “strategy,” “future” or words, phrases or terms of similar substance or the negative thereof, are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the overall impact of the COVID-19 pandemic on our business; the duration and severity of the COVID-19 pandemic; actions that may be taken by us, other businesses and governments to address or otherwise mitigate the impact of the COVID-19 pandemic, including those that may impact our ability to operate our facilities, meet production demands, and deliver products to our customers; the negative impacts of the COVID-19 pandemic on the global economy, our customers and suppliers, and customer demand; overall global economic and business conditions impacting our business, including the strength of housing and related markets; demand, competition and pricing pressures in the markets we serve; volatility in currency exchange rates; failure of markets to accept new product introductions and enhancements; the ability to successfully identify, finance, complete and integrate acquisitions; the ability to achieve the benefits of our restructuring plans and cost reduction initiatives; risks associated with operating foreign businesses; the impact of material cost and other inflation; the impact of seasonality of sales and weather conditions; our ability to comply with laws and regulations; the impact of changes in laws, regulations and administrative policy, including those that limit U.S. tax benefits or impact trade agreements and tariffs; the outcome of litigation and governmental proceedings; and the ability to achieve our long-term strategic operating goals. Additional information concerning these and other factors is contained in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2019 and to our Quarterly Reports on Form 10-Q. All forward-looking statements speak only as of the date of this release. Pentair plc assumes no obligation, and disclaims any obligation, to update the information contained in this release.
ABOUT PENTAIR PLC
Pentair makes the most of life’s essential resources. From our residential and business solutions that help people move, improve and enjoy their water, to our sustainable innovations and applications, we deliver smart, sustainable solutions for life.
Pentair had revenue in 2020 of
Pentair plc and Subsidiaries |
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Condensed Consolidated Statements of Operations (Unaudited) |
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|
|
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|
||||||||||
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Three months ended |
|
Twelve months ended |
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In millions, except per-share data |
December 31,
|
December 31,
|
|
December 31,
|
December 31,
|
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Net sales |
$ |
796.0 |
|
$ |
755.2 |
|
|
$ |
3,017.8 |
|
$ |
2,957.2 |
|
||
Cost of goods sold |
512.5 |
|
481.0 |
|
|
1,960.2 |
|
1,905.7 |
|
||||||
Gross profit |
283.5 |
|
274.2 |
|
|
1,057.6 |
|
1,051.5 |
|
||||||
% of net sales |
35.6 |
% |
36.3 |
% |
|
35.0 |
% |
35.6 |
% |
||||||
Selling, general and administrative |
141.9 |
|
134.2 |
|
|
520.5 |
|
540.1 |
|
||||||
% of net sales |
17.8 |
% |
17.8 |
% |
|
17.2 |
% |
18.3 |
% |
||||||
Research and development |
20.1 |
|
17.7 |
|
|
75.7 |
|
78.9 |
|
||||||
% of net sales |
2.5 |
% |
2.3 |
% |
|
2.5 |
% |
2.7 |
% |
||||||
Operating income |
121.5 |
|
122.3 |
|
|
461.4 |
|
432.5 |
|
||||||
% of net sales |
15.3 |
% |
16.2 |
% |
|
15.3 |
% |
14.6 |
% |
||||||
Other expense (income): |
|
|
|
|
|
||||||||||
Loss (gain) on sale of businesses |
— |
|
1.1 |
|
|
0.1 |
|
(2.2 |
) |
||||||
Other expense (income) |
6.9 |
|
8.8 |
|
|
5.3 |
|
(2.9 |
) |
||||||
Net interest expense |
3.9 |
|
6.5 |
|
|
23.9 |
|
30.1 |
|
||||||
% of net sales |
0.5 |
% |
0.9 |
% |
|
0.8 |
% |
1.0 |
% |
||||||
Income from continuing operations before income taxes |
110.7 |
|
105.9 |
|
|
432.1 |
|
407.5 |
|
||||||
Provision for income taxes |
10.9 |
|
3.0 |
|
|
75.0 |
|
45.8 |
|
||||||
Effective tax rate |
9.8 |
% |
2.8 |
% |
|
17.4 |
% |
11.2 |
% |
||||||
Net income from continuing operations |
99.8 |
|
102.9 |
|
|
357.1 |
|
361.7 |
|
||||||
Income (loss) from discontinued operation, net of tax |
3.2 |
|
(5.1 |
) |
|
1.5 |
|
(6.0 |
) |
||||||
Net income |
$ |
103.0 |
|
$ |
97.8 |
|
|
$ |
358.6 |
|
$ |
355.7 |
|
||
Earnings (loss) per ordinary share |
|
|
|
|
|
||||||||||
Basic |
|
|
|
|
|
||||||||||
Continuing operations |
$ |
0.60 |
|
$ |
0.61 |
|
|
$ |
2.14 |
|
$ |
2.14 |
|
||
Discontinued operations |
0.02 |
|
(0.03 |
) |
|
0.01 |
|
(0.04 |
) |
||||||
Basic earnings per ordinary share |
$ |
0.62 |
|
$ |
0.58 |
|
|
$ |
2.15 |
|
$ |
2.10 |
|
||
Diluted |
|
|
|
|
|
||||||||||
Continuing operations |
$ |
0.60 |
|
$ |
0.61 |
|
|
$ |
2.13 |
|
$ |
2.12 |
|
||
Discontinued operations |
0.01 |
|
(0.03 |
) |
|
0.01 |
|
(0.03 |
) |
||||||
Diluted earnings per ordinary share |
$ |
0.61 |
|
$ |
0.58 |
|
|
$ |
2.14 |
|
$ |
2.09 |
|
||
Weighted average ordinary shares outstanding |
|
|
|
|
|
||||||||||
Basic |
166.2 |
|
168.2 |
|
|
166.5 |
|
169.4 |
|
||||||
Diluted |
167.5 |
|
169.3 |
|
|
167.4 |
|
170.4 |
|
||||||
Cash dividends paid per ordinary share |
$ |
0.19 |
|
$ |
0.18 |
|
|
$ |
0.76 |
|
$ |
0.72 |
|
||
Pentair plc and Subsidiaries |
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Condensed Consolidated Balance Sheets (Unaudited) |
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|
December 31, |
December 31, |
|||||
In millions |
2020 |
2019 |
|||||
Assets |
|||||||
Current assets |
|
|
|||||
Cash and cash equivalents |
$ |
82.1 |
|
$ |
82.5 |
|
|
Accounts and notes receivable, net |
367.5 |
|
502.9 |
|
|||
Inventories |
420.0 |
|
377.4 |
|
|||
Other current assets |
105.5 |
|
99.1 |
|
|||
Total current assets |
975.1 |
|
1,061.9 |
|
|||
Property, plant and equipment, net |
301.2 |
|
283.2 |
|
|||
Other assets |
|
|
|||||
Goodwill |
2,392.2 |
|
2,258.3 |
|
|||
Intangibles, net |
325.9 |
|
339.2 |
|
|||
Other non-current assets |
202.8 |
|
196.9 |
|
|||
Total other assets |
2,920.9 |
|
2,794.4 |
|
|||
Total assets |
$ |
4,197.2 |
|
$ |
4,139.5 |
|
|
Liabilities and Equity |
|||||||
Current liabilities |
|
|
|||||
Accounts payable |
$ |
245.1 |
|
$ |
325.1 |
|
|
Employee compensation and benefits |
117.0 |
|
71.0 |
|
|||
Other current liabilities |
410.4 |
|
352.9 |
|
|||
Total current liabilities |
772.5 |
|
749.0 |
|
|||
Other liabilities |
|
|
|||||
Long-term debt |
839.6 |
|
1,029.1 |
|
|||
Pension and other post-retirement compensation and benefits |
102.0 |
|
96.4 |
|
|||
Deferred tax liabilities |
107.4 |
|
104.4 |
|
|||
Other non-current liabilities |
269.4 |
|
206.7 |
|
|||
Total liabilities |
2,090.9 |
|
2,185.6 |
|
|||
Equity |
2,106.3 |
|
1,953.9 |
|
|||
Total liabilities and equity |
$ |
4,197.2 |
|
$ |
4,139.5 |
|
|
Pentair plc and Subsidiaries |
|||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) |
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|
|||||||
|
Years ended December 31 |
||||||
In millions |
2020 |
2019 |
|||||
Operating activities |
|
|
|||||
Net income |
$ |
358.6 |
|
$ |
355.7 |
|
|
(Income) loss from discontinued operations, net of tax |
(1.5 |
) |
6.0 |
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FAQ
What were Pentair's 4Q 2020 sales figures?
Pentair reported $796 million in sales for the fourth quarter of 2020.
How much did Pentair increase its dividend in 2021?
Pentair increased its quarterly dividend by 5%, marking the 45th consecutive year of dividend growth.
What is Pentair's 2021 EPS guidance?
Pentair's 2021 GAAP EPS guidance is between $2.43 and $2.58.
What was the operating income for Pentair in 4Q 2020?
Pentair's operating income for the fourth quarter of 2020 was $122 million.
What is the projected sales growth for Pentair in 2021?
Pentair anticipates sales growth of approximately 3% to 5% in 2021.
Pentair plc
NYSE:PNRPNR RankingsPNR Latest NewsPNR Stock Data
16.22B
165.50M
0.62%
97.33%
2.04%
Specialty Industrial Machinery
Special Industry Machinery (no Metalworking Machinery)
United States of America
LONDON
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