Benzinga | Sep 30, 2021 09:53AM EDT

Xylem Reaffirms Growth Strategy; Foresees ~$100M Adverse Revenue Impacts In 2H

* Xylem Inc (NYSE:XYL) plans to reaffirm its growth strategy and set out its long-term financial framework at Investor Day to be held today.

* Xylem noted the global supply chain environment has become increasingly volatile, including escalating electronic component shortages. For FY21, the company estimates adverse revenue impacts of ~$100 million in the second half of the year.

* Xylem had earlier expected FY21 organic revenue growth of 6% - 8% and 9% - 11% on a reported basis and adjusted EPS of $2.55 - $2.70.

* The company's long-term financial framework anticipates annual organic revenue growth of 4% - 6%, with an average annual adjusted EBITDA margin expansion of 50-75 bps per year. The company also maintains its commitment to average yearly free cash flow conversion of 100%.

* Xylem will announce the establishment of Xylem Vue, a digital ecosystem bringing together the power of its advanced hardware and software technologies and service capabilities.

* Xylem said it expects to continue delivering above-market organic growth with enhanced margins.

* Price Action: XYL shares traded lower by 0.17% at $127.58 on the last check Thursday.