reported a 41% rise in profits for the fourth quarter, aided by strong growth in pump and pool markets.
The Minessota-based maker of water treatment products and electronic enclosures earned $38.9 million, or 38 cents a share, compared with $27.7 million, or 26 cents a share, a year earlier. Excluding the impact of stock options expenses, the company earned 41 cents a share for the fourth quarter of 2005. Analysts polled by Thomson First Call were expecting earnings of 40 cents a share.
Pentair expects to earn $2.08 a share to $2.18 a share for the year 2006, including stock option expenses. The Wall Street estimate, which excludes the expense, is $2.21 a share.
Revenue in the fourth quarter grew 12% from a year ago to $732.1 million. The Thomson First Call estimate was $710.12 million.
Revenue from Water Group rose 10% to $517.8 million over the same period last year, due to growth in revenue in all segments, with the strongest growth occurring in pump and pool markets. New water products, which include new pumps and new filtration products also contributed to the revenue growth. Enclosures Group recorded revenue of $214.3 million, reflecting an 18% gain over the same period last year.
"In our first full year after the transformation of Pentair into a Water-led business, we met our strategic and financial goals of replacing the earnings of our former Tools Group, and added an additional 14% to EPS on top of that, excluding stock option expensing." the company said. "In 2005, we achieved organic growth of approximately 6%, while achieving the highest profitability and return on invested capital in the last five years."
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