Xylem Inc. plunged the most on record after the water company spun off by ITT Corp. (ITT:US) revised down full-year revenue forecasts citing weaker demand.
The shares (XYL:US) fell as much as 17 percent, the most since it started trading in New York in 2011, after Xylem cut 2013 revenue forecasts to $3.7 billion, 5 percent lower than it predicted on March 7. Xylem cited a slump in U.S. industrial production, the credit crisis in Europe and lower shipments of treatment project.
The New York-based company reported second-quarter revenue of $960 million, down 3.4 percent from the same period a year ago, according to a statement issued today.
“While our second-quarter results were lower than expected, we captured important contract wins in June, resulting in record orders of more than $1 billion in the quarter,” said Gretchen McClain, president and chief executive officer of Xylem.
The company won contracts in China, Spain and the United Arab Emirates.
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