- From: Vol 2, Issue 12 (December 2011)
- Category: Need to know
- Region: Americas
- Country: United States
- Related Companies: American Water, Aqua America, California Public Utilities Commission (CPUC), California Water Service Co (Cal Water), Heckmann Water Resources, ITT, Nalco and Watts Water Technologies
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California Water, whose revenues jumped 15.7 percent in 3QFY2011, reached a cost of capital agreement with the California Public Utilities Commission’s Division of Ratepayer Advocates.
- Cal Water expects the agreement to result in an allowed ROE of 9.99 percent.
- Watts Water Technologies far exceeded analysts’ EPS expectations in 3QFY2011, earning $0.63 per share as the company’s Danfoss Socla acquisition began reaping benefits earlier than anticipated. CEO David Coghlan attributed $0.06 in adjusted earnings to Socla.
- Aqua America saw ups and downs in 3QFY2011, posting the highest EBITDA growth in the U.S. water utilities sector at 13 percent but seeing comprehensive revenue fall about 8 percent from 3QFY2010 – from $44 million to $40.7 million.
- American Water, meanwhile, is looking more bullish than ever as it moves into 4QFY2011. American Water stock hit a five- year high at $31.49 – up more than 22 percent year to date.
- Other firms are feeling the municipal pinch. Pentair CEO Randall Hogan said during his third quarter conference call that the municipal downturn will deal a large blow to the company’s pumps business, with flows projected to fall 30 percent in 4QFY2011.
- Dick Heckmann, meanwhile, is walking on air following the divestiture of China Water. Heckmann Water Resources’ revenues rocketed up 96 percent from 3QFY2010. The company’s water pipeline production nearly doubled to 30,000 barrels per day from 17,000 last quarter.
- After bullish claims and much fanfare with trading starting at the beginning of November, the edge was taken off Xylem’s profits in the third quarter because of one-time costs associated with its recent separation from ITT. The company’s revenues, however, jumped 17 percent.
- Nalco and Ecolab, meanwhile, completed their merger on Dec. 1, after receiving final antitrust approval and an overwhelming “yes” vote from shareholders. The enlarged business expects to post $11 billion in 2011 revenues.