Mario Gabelli Comments on Xylem Inc.

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Oct 21, 2015

Xylem Inc. (NYSE:XYL)(1.4%) (XYL – $32.85 – NYSE) is a global leader in the design, manufacturing, and application of highly engineered technologies for the transportation, treatment, and testing of water. The company is expected to benefit from favorable long term fundamentals in the water industry, driven by scarcity, population growth, aging of the infrastructure, and the need to improve water quality. Further, with a large installed base of pumps and systems, the company is well positioned to increase aftermarket revenue, which currently represents roughly 40% of total revenues. Xylem’s attractive business mix also generates strong cash flow, which is expected to support acquisitions across geographies and end markets and increase returns to shareholders. The company most recently provided a 5 year plan that outlined favorable organic growth and margin targets that Xylem believes it can achieve.

From GAMCO's third quarter 2015 Value 25 Fund shareholder commentary.