Watts Water Technologies Flips To 1Q Loss
NORTH ANDOVER, Mass. (AP) ¿ Watts Water Technologies Inc. said Tuesday it lost money in the first quarter as the recession hurt construction-related sales and a restructuring charge weighed down results.
The company said it lost $1 million, or 3 cents per share, compared with net income of $13.7 million, or 37 cents per share, a year earlier.
The loss included an after-tax charge of $9.3 million, or 25 cents per share.
Analysts, who usually exclude items, expected the company to earn 27 cents per share, according to a survey by Thomson Reuters.Sales for the quarter ended March 29 was $294.9 million, down 14 percent from a year earlier, when sales were $344 million. Analysts had forecast $304.3 million. Chief Executive Patrick S. O'Keefe said sales were hurt by the slump in U.S. commercial and residential construction. He said sales in North America, about half the company's business, fell 16 percent. Sales in Europe, about one-third of the company's revenue, and China also weakened, the CEO said. The $9.3 million charge included $9.1 million for previously announced restructuring moves and about $200,000 for writing down assets. Watts said most of the restructuring-related charge, or $8.3 million, related to previously recognized tax benefits that are likely to be forfeited due to the company's decision to restructure some operations. Watts shares rose 22 cents to $22.77 in regular trading. After the results were released, they fell 87 cents, or 3.8 percent, to $21.90 in extended trading.
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