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Xylem Continues to Expand Geographically - Analyst Blog

By: Zacks.com
Posted: 12/24/2013 2:05:00 PM
Referenced Stocks: DXPE;GHM;MIDD;XYL

Adding momentum to its efforts to increase international presence, leading water solutions provider Xylem Inc. ( XYL ) won a $2.7 million contract, which will add to its overseas operations.

Xylem had won other contracts in foreign locations in the recent past such as the $6.5 million deal in Singapore and the largest ozone contract in China worth $1.9 million. Moreover, to-date in 2013, Xylem has to its credit contract wins in India, Colombia, United Arab Emirates, Sweden and Beijing.

The company's latest contract requires it to provide equipment and technology for a storm water drainage system along Route 35 on the New Jersey coastline. The supply will ensure protection against future storm damage.

Notably, this contract is part of the $265.0 million reconstruction project to rectify the damage caused by Superstorm Sandy in Oct 2012. Xylem will execute the deal with 47 Flygt Slimline pumps and 27 smaller Flygt submersible N-pumps in nine pump stations, spread over the 12-mile long coastline. The pump stations have a capacity to carry roughly 25K to 35K gallons of water per minute.

In case of a natural calamity like flood, these pumps will ensure speedy discharge of excess water in water-logged areas. Xylem will begin work on the project before the end of the year, with the expected completion of the larger project by the summer of 2014.

With such diversified and high-value contracts in the pipeline, Xylem is expected to increase its market share and generate higher revenues in the quarters ahead.

Xylem currently has a market capitalization of $6.3 billion. The company holds a Zacks Rank #1 (Strong Buy). Other stocks that warrant a look in the industry include DXP Enterprises, Inc. ( DXPE ), Graham Corp. ( GHM ) and The Middleby Corporation ( MIDD ). Each of these stocks have a Zacks Rank #2 (Buy).



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XYLEM INC (XYL): Free Stock Analysis Report

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