Roper Technologies Inc, USA

COMPANY WATCH

Roper Technologies Inc, USA

Key Figures (US$ million) Three months ended 31.12 2016 2015

Net Sales Of Which: Industrial Technology

1010.8 178.4

182.0

Operating Profit Of Which: Industrial Technology

326.9

303.9

51.6

52.2

Net Earnings

182.1

208.6

1084.7

924.1

176.0

176.4

Net Orders Of Which: Industrial Technology



943.6

Twelve months ended 31.12 2016 2015

Net Sales Of Which: Industrial Technology

3789.9

3582.4

706.6

745.4

Operating Profit Of Which: Industrial Technology

1182.1

1130.7

202.5

214.5

658.6

696.1

3896.2

3547.6

704.6

731.8

Net Earnings Net Orders Of Which: Industrial Technology

COMMENT Roper Technologies Inc, parent company of pump manufacturers Cornell and Roper Pumps, saw fourth quarter 2016 GAAP revenue and adjusted revenue increase 7% to US$1.011 billion and US$1.018 billion, respectively. Orders were up 17% to US$1.085 billion, and operating cash flow in the quarter was US$270 million. “We are very pleased with our fourth quarter performance,” said Brian Jellison, Roper’s chairman, president and CEO. “The execution of our strategies continued to deliver impressive cash flow results as full year 8

Pump Industry Analyst

adjusted operating cash flow exceeded US$1 billion for the first time. Revenue increased 7%, including 2% organic growth, and we delivered a record US$365 million of EBITDA in the quarter, representing 36% of revenue. Importantly, fourth quarter orders increased 17% to a record US$1.1 billion and our book-to-bill ratio was 1.07, giving us confidence as we enter 2017.” Roper expects 2017 full year adjusted revenue to increase 20–22% including organic revenue growth of 3–5%. n www.ropertech.com

Xylem Inc, USA

Key Figures (US$ million) Fourth quarter ended 31.12 2016 2015

Net Sales

1095

994

Cost of Revenue

689

604

Gross Profit

406

390

35

24

109

142

50

114

R&D Expenses Operating Income Net Income Year ended 31.12

2016 2015

Net Sales

3771

3653

Cost of Revenue

2310

2249

Gross Profit

1461

1404

R&D Expenses

110

95

Operating Income

406

449

Net Income

260

340

COMMENT Water technology firm Xylem Inc has posted fourth quarter fiscal 2016 revenues of US$1.1 billion, up 10.2% on the prior year. Sales benefitted from a US$132 million contribution from its October 2016 acquisition Sensus, with revenues down year-on-year in both its established segments. The Water Infrastructure segment recorded sales of US$612 million, 2.7% lower than the 2015 comparator, reflecting ongoing softness in the oil and gas sector and industrial end market, partially offset by continuing growth in the US public utility sector and emerging markets. Xylem’s Applied Water division saw revenues fall 3.8% to US$351 million, with the impact of a weak US industrial market, partially offset by improved performance in emerging markets, primarily

China and Latin America. Net income for the quarter fell 56.1% on the year prior to US$50 million, impacted by US$15 million in restructuring and realignment costs as well as US$43 million in expenses for its Sensus acquisition. Adjusted net income was US$118 million, up 10% on the 2015 figure. “This quarter we drove strong operating margin expansion by realizing the continued benefits from global procurement and lean and six sigma initiatives,” Patrick Decker, Xylem’s president and CEO, said. “As we look to 2017, our organic and inorganic investments in 2016 along with continued improvements to our cost structure will pave the way for accelerated growth as we continue to execute on our investment thesis and increase shareholder value.” n www.xylem.com

February 2017