NEW YORK (AP) — Pentair Ltd. said Tuesday that its net income sank in the first quarter on costs related to its tie-up with the flow-control business of Tyco International, but the result was better than Wall Street expected.
Pentair and Tyco announced the combination in March, and the joint company was formed in late September. Excluding costs related to the deal and other one-time items, the Swiss company said it earned 58 cents per share, which was 2 cents more than analysts expected. Pentair maintained its full-year profit estimate and said it expects bigger savings as a result of the Tyco combination.
Shares of Pentair picked up $2.63, or 5.3 percent, to $52.68 in afternoon trading.
The company's net income fell to $52 million from $62 million, and because it share count has more than doubled, its per-share profit fell to 25 cents from 62 cents. Its revenue more than doubled to $1.77 billion from $858 million.
Analysts were forecasting net income of 56 cents per share and $1.8 billion in revenue, according to FactSet.
Pentair said revenue from its water and fluid solutions business rose 5 percent to $782 million and technical solutions revenue fell 2 percent to $410 million. It reported $586 million in revenue from the valves and controls unit, which was part of Tyco a year ago. Pentair said revenue for that business fell 3 percent.
Pentair expects $100 million in savings related to the Tyco deal, up from its prior estimate of $90 million. The company said it still expects to earn $3.10 to $3.30 per share in 2013, with net income of 88 to 91 cents per share in the second quarter.
Analysts are projecting net income of $3.21 per share for the year and 90 cents per share in the second quarter.