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Flowserve Announces Planned Corporate Actions

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Copyright © Thomson Reuters 2013. All rights reserved.
2013-02-21 22:04:41 -

Announces a 16.7% quarterly dividend increase to 42 cents per share

Buyback program authorization replenished to $750 million

Approves a 3-for-1 stock split, subject to shareholder action

DALLAS, February 21, 2013 - Flowserve Corp. (NYSE:FLS), a leading provider of
flow control products and services for the global infrastructure markets,
announced today that its Board of Directors has recently approved certain key
planned corporate actions, including a 16.7% increase in its quarterly dividend
to 42 cents per share, a replenished stock repurchase authorization to $750
million and a 3-for-1 stock split, subject to shareholder action.

"Flowserve has a strong record of delivering value to our shareholders,"
indicated Mark Blinn, president and chief executive officer. "Since the start of
2008, we have returned over $1.5 billion to our shareholders through dividends
and share buybacks, 
while simultaneously investing in the business, maintaining a prudent balance sheet, completing targeted acquisitions and delivering earnings growth.  We have also demonstrated the ability to generate substantial free cash flow, even during historically difficult periods of the business cycle.  Today's announced actions reflect both our ongoing commitment to providing value to our shareholders, as well as confidence in our ability to generate long-term profitable growth and solid cash flows." Increase in Quarterly Dividend Flowserve announced today that its Board of Directors has authorized the payment of a quarterly cash dividend of $0.42 per share on the company's outstanding shares of common stock.  The quarterly cash dividend increased from $0.36 per share, or 16.7% over the previous quarterly rate. The dividend is payable on April 12, 2013, to shareholders of record as of the close of business on March 28, 2013. Future dividend payments would be proportionately adjusted for any effected stock split. While Flowserve currently intends to pay regular quarterly cash dividends for the foreseeable future, any future dividends, whether at this $0.42 per share quarterly rate (equivalent to $0.14 per share assuming the proposed 3-for-1 split is effected) or otherwise, will be reviewed individually and declared by the Board at its discretion, dependent on the Board's assessment of the company's financial condition and business outlook at the applicable time. Stock Repurchase Program Replenished Flowserve also announced that its Board of Directors has approved a replenished stock repurchase authorization of $750 million, inclusive of approximately $193 million remaining under the prior $1 billion program authorized in 2012. Execution of the company's share repurchases is ongoing, with completion of the remaining amounts under the prior program expected to occur during the 2013 second quarter.  The company then anticipates the remaining authorized amount, approximately $557 million, will be utilized under its previously announced policy of annually returning 40% to 50% of its running two-year average net earnings to shareholders while maintaining its target leverage ratio. The amount and timing of the planned repurchases will be determined by the company based on its evaluation of its financial condition, business opportunities and market conditions at the time.  The repurchases may be effected through various methods, including open market repurchases (including those effected through Rule 10b5-1 plans to allow longer periods of repurchase opportunity). Approved 3-for-1 Stock Split Flowserve's Board of Directors recently approved a 3-for-1 stock split. Implementation of the stock split is subject to shareholders' approval of an amendment to the company's certificate of incorporation to increase the number of authorized shares of the company's common stock.  This amendment, which would enable the recommended stock split, will be voted on by the shareholders at Flowserve's 2013 Annual Meeting of Shareholders expected to be held May 23, 2013. If approved as recommended by the Board, the record date is expected to be on or about June 7, 2013.  Each shareholder of record on the record date will receive two additional shares of common stock for each share held. Flowserve anticipates the additional shares will be distributed by the end of July 2013 if approved. Additional details of the 2013 Annual Meeting of Shareholders and the proposed stock split will be included the company's proxy statement, which is expected to be filed in early April 2013. ### Flowserve Contacts Investor Contacts: Mike Mullin, Director, Investor Relations, (972) 443-6636 Jay Roueche, Vice President, Investor Relations & Treasurer, (972) 443-6560 Media Contact: Steve Boone, Director, Global Communications and Public Affairs, (972) 443-6644 About Flowserve: Flowserve Corp. is one of the world's leading providers of fluid motion and control products and services. Operating in more than 55 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the company's Web site at Safe Harbor Statement:  This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition. The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in the global financial markets and the availability of capital and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers' ability to make required capital investment and maintenance expenditures; risks associated with cost overruns on fixed-fee projects and in taking customer orders for large complex custom engineered products; the substantial dependence of our sales on the success of the oil and gas, chemical, power generation and water management industries; the adverse impact of volatile raw materials prices on our products and operating margins; our ability to execute and realize the expected financial benefits from our strategic realignment initiatives; economic, political and other risks associated with our international operations, including military actions or trade embargoes that could affect customer markets, particularly Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Venezuela; our furnishing of products and services to nuclear power plant facilities; potential adverse consequences resulting from litigation to which we are a party, such as litigation involving asbestos-containing material claims; a foreign government investigation regarding our participation in the United Nations Oil-for-Food Program; expectations regarding acquisitions and the integration of acquired businesses; our foreign subsidiaries autonomously conducting limited business operations and sales in certain countries identified by the U.S. State Department as state sponsors of terrorism; our relative geographical profitability and its impact on our utilization of deferred tax assets, including foreign tax credits; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; environmental compliance costs and liabilities; potential work stoppages and other labor matters; our inability to protect our intellectual property in the U.S., as well as in foreign countries; obligations under our defined benefit pension plans; and other factors described from time to time in our filings with the Securities and Exchange Commission. All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement. This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Flowserve Corporation via Thomson Reuters ONE [HUG#1680280]

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