WHITE PLAINS, N.Y. (AP) -- Water treatment company Xylem Inc. said Tuesday that its first-quarter net income dropped 35 percent, hurt by softer demand for its products.
The adjusted profit matched Wall Street predictions while revenue fell short, sending Xylem shares down 5 percent in afternoon trading.
The White Palins, N.Y.-based company earned $41 million, or 22 cents per share, down from $63 million, or 34 cents per share, in the same quarter of 2012. Excluding restructuring and other charges, the company posted an adjusted profit of 27 cents per share.
Revenue fell 5 percent to $879 million.
Analysts, on average, expected 27 cents per share on $892.6 million in revenue, according to FactSet.
Xylem said the drop in revenue reflected tough European economic conditions, weak U.S. industrial demand and lower shipments for treatment projects. Profit fell because of lower sales volumes, acquisition costs and investments in growth initiatives.
The company backed its previous full-year outlook of $1.79 to $1.89 in earnings per share and about $3.9 billion in revenue. Analysts expect profit of $1.84 per share on $3.9 billion in revenue.
Xylem fell 88 cents, or 3.1 percent, to $27.37 in afternoon trading, after dropping as low as $26.41 earlier in the day. Over the past 52 weeks, the stock has traded between $22.43 and $29.49.