Pentair approved an increase in the quarterly cash dividend of one cent per share starting in the first quarter of 2009. The dividend increased to $0.18 from $0.17, a 6% increase.
Pentair revised its fourth quarter 2008 outlook and expects earnings per share from continuing operations to be $0.40-$0.42 (compared to a previous EPS estimate of $0.52-$0.55). Pentair expects sales to decline between 8 and 10 percent. For first quarter of 2009, Pentair expects sales to decline 10% with EPS in the range of $0.30-$0.35.
Pentair announced that it will cut more than 10 percent of its work force, or about 1,600 jobs, due to a dropoff in demand and consumer spending. Pentair also implemented a hiring freeze and announced that it will not give annual salary increases.
Pentair announced that it has agreed to sell its Spa and Bath business to Balboa Water Group in a cash transaction. The company expects to use the cash proceeds to pay down debt.
Pentair announced that for the fourth quarter of 2008, EPS (adjusting for charges associated with restructuring) is expected to be $0.52 to $0.55, approximately the same as the fourth quarter of 2007.