Pentair 3Q profit down 13 percent on poor economy

Pentair's 3rd-quarter profit falls as poor economy puts drain on sales; full-year outlook cut

• On 10:29 am EDT, Tuesday October 20, 2009

MINNEAPOLIS (AP) -- The economic downturn and a resulting drop in sales led Pentair Inc. to report a 13 percent decline in third-quarter profit and reduce its full-year forecast.

Pentair, which makes systems to treat and store water, posted quarterly profit of $36.9 million, or 38 cents per share, compared with $41.1 million, or 41 cents per share, in the year-earlier quarter.

Excluding 4 cents per share in restructuring charges, the company earned 42 cents per share in the latest quarter.

Analysts polled by Thomson Reuters expected, on average, earnings per share of 41 cents. Analyst estimates typically exclude one-time items.

Sales fell to $662.7 million from $855.8 million. Analysts expected revenue of $680.1 million.

Selling, general and administrative expenses declined to $125.6 million from $154.1 million, and research and development costs slipped to $14.7 million from $16.2 million.

"As anticipated, the benefits of our cost actions are rapidly improving our operating margins and earnings," said CEO Randall J. Hogan in a statement.

In morning trading, Pentair stock fell $1.86, or 5.5 percent, to $31.77. Over the last 52 weeks, shares have ranged from $17.23 to $33.92.