2013-02-21 22:06:40 -
Reports Fourth Quarter & Full Year 2012 EPS of $2.83 and $8.51, respectively
Announces 16.7% quarterly dividend increase per share and replenished buyback
authorization of $750 million and approved a 3-for-1 stock split, subject to
shareholder action
Reaffirms 2013 Full Year EPS Target Range of $9.60 to $10.60
DALLAS, February 21, 2013 - Flowserve Corp. (NYSE:FLS), a leading provider of
flow control products and services for the global infrastructure markets,
announced today financial results for the fourth quarter and full year of
2012. In a separate release, the company also announced a 16.7% increase in its
quarterly dividend to 42 cents per share, a replenished stock repurchase
authorization to $750 million and an approved 3-for-1 stock split, subject to
shareholder action. In addition, Flowserve today filed its 2012 Annual Report
on Form
10-K with the Securities and Exchange Commission. Highlights from the
fourth quarter and full year 2012 results include:
Fourth Quarter 2012 (all comparisons versus fourth quarter 2011 unless otherwise
noted):
* Fully diluted EPS of $2.83, up 25.8%
* Bookings of $1.08 billion, down 5.6%, or 4.3% excluding negative currency
effects of approximately $15 million
* Aftermarket bookings of $489 million, up 4.7%
* Sales of $1.33 billion, up 5.0%, or 6.5% excluding negative currency effects
of approximately $20 million
* Aftermarket sales of $575 million, up 10.6%, or 11.0% on a constant
currency basis
* Gross margin increase of 50 basis points to 33.7%
* SG&A as a percentage of sales up 30 basis points to 18.7%
* Operating income of $202.8 million, up 4.9%, or 6.4% excluding negative
currency effects of approximately $3 million
* Operating margin constant at 15.3%
Full Year 2012 (all comparisons versus full year 2011 unless otherwise noted):
* Fully diluted EPS of $8.51, up 11.4%, including $0.85 of net negative
currency effects
* Bookings of $4.71 billion, up 1.1%, or 5.5% excluding negative currency
effects of approximately $204 million
* Aftermarket bookings of $1.93 billion, up 4.0%, or 7.1% on a constant
currency basis
* Sales of $4.75 billion, up 5.3%, or 9.9% excluding negative currency effects
of approximately $204 million
* Aftermarket sales of $1.95 billion, up 5.6%, or 9.0% on a constant
currency basis
* Gross margin decrease of 30 basis points to 33.3%
* SG&A as a percentage of sales down 90 basis points to 19.4
* Operating income of $675.8 million, up 9.2%, or 15.0% excluding negative
currency effects of approximately $36 million
* Operating margin increase of 50 basis points to 14.2%
* Backlog at December 31, 2012 of $2.65 billion, including positive currency
effects of $22 million, compared to $2.69 billion in backlog at December
31, 2011
Mark Blinn, Flowserve president and chief executive officer, said, "I am pleased
with our fourth quarter performance, which was a good finish to the year and
culminated in our solid full year 2012 results as we managed through a
challenging macroeconomic environment. During the year, we focused internally on
operational efficiency and leveraging our 'One Flowserve' initiative. As a
result of these operational improvements and our increased focus on cost, we
delivered on our long-term goal of leveraging mid-single digit organic revenue
growth into double-digit earnings per share growth.
"As the year progressed, we also improved upon our order execution process and
heightened our discipline and selectivity, resulting in both bookings growth and
a higher quality of projects in backlog. Our aftermarket business continued to
show strength, with our end-user focus and strategic localization initiatives
supporting our highest annual aftermarket bookings level over $1.9 billion.
"Looking forward to fiscal 2013, we expect to build upon last year's progress
and capitalize on anticipated improving economic growth rates in latter 2013 to
drive long-term value for our shareholders. While global macroeconomic
uncertainty remains, we anticipate modest improvement in the U.S., stability in
our European exposures and solid opportunities in the developing regions that we
targeted with additional capacity in 2012. When value-creating opportunities
arise, we are also well positioned to execute on our inorganic growth strategy,
targeting bolt-on opportunities where we can leverage our global sales force and
aftermarket platform to grow the business at a faster pace."
Financial Performance and Guidance
Mike Taff, senior vice president and chief financial officer, said, "Our strong
execution and operational excellence efforts throughout the year resulted in
over 11% earnings per share growth and operating margin expansion of 50 basis
points, keeping us on track for our previously announced 2014 margin improvement
target of 150 to 250 basis points above 2011 margins. While opportunities
remain, our recent working capital initiatives contributed to the strong
operating cash flow of $517 million generated during the year.
"We returned nearly $850 million of capital to shareholders during 2012, as we
also executed on our capital structure strategies to increase the efficiency of
our balance sheet while remaining positioned for profitable growth investments.
Throughout, we maintained a disciplined approach to capital deployment and
continued investing to optimize our operational platform and further grow our
business. I am pleased that our Board of Directors has recently approved a
16.7% dividend increase, replenished our share repurchase authorization to $750
million and approved a 3-for-1 stock split, subject to shareholder action, all
of which we believe will prove beneficial to our owners.
"Similar to 2012, our 2013 earnings guidance of $9.60 to $10.60 per share will
reflect traditional seasonality, as well as the impact on our backlog of a
slowing economy in latter 2012, and thus will have earnings weighted towards the
second half of the year. We further expect the 2013 first quarter to be the
trough of the year, with a somewhat challenging year-over-year compare primarily
due to Venezuela's recent devaluation of the bolivar, with a forecasted first
quarter 2013 impact of approximately $3 million, as well as a higher effective
tax rate, and with the one-time $10.4 million benefit recognized in the first
quarter of 2012 resulting from the sale of our prior Rio de Janeiro facility.
Although our 2013 earnings will be weighted toward the second half of the year,
we remain confident in our ability to achieve our full-year goals."
Operational Commentary and Segment Performance (all comparisons versus fourth
quarter 2011 or full year 2011 unless otherwise noted)
Tom Pajonas, senior vice president and chief operating officer, said, "I am
pleased with the operational improvements we made throughout 2012, as certain
key initiatives such as on-time delivery, working capital management, reduced
cost of quality and low-cost sourcing allowed the company to achieve
disciplined, profitable growth and further positioned the business to capture
expected improvements in our end markets. We saw solid activity across our
served industries in 2012, with the exception of power, which remains soft and
competitive. While most of our original equipment activity consisted of small
to mid-sized projects, as we look at 2013 we are encouraged that pre-FEED and
FEED work remains at high levels, and we continue to expect the final approval
of certain larger projects in the second half of 2013."
Engineered Product Division (EPD)
EPD bookings for the fourth quarter of 2012 decreased to $558.4 million, down
$31.6 million or 5.4%, or 4.0% excluding negative currency effects of
approximately $8 million. Bookings for the full year 2012 increased to $2.37
billion, up $39.6 million or 1.7%, or 6.2% excluding negative currency effects
of approximately $105 million. EPD sales for the fourth quarter of 2012
increased to $714.2 million, up $48.1 million or 7.2%, or 9.0% excluding
negative currency effects of approximately $12 million. Sales for the full year
2012 increased to $2.40 billion, up $81.7 million or 3.5%, or 8.1% excluding
negative currency effects of approximately $106 million.
EPD gross profit for the fourth quarter of 2012 increased to $239.8 million, up
$9.7 million or 4.2%. Gross margin for the fourth quarter of 2012 decreased 90
basis points to 33.6%. Gross profit for the full year 2012 increased to $811.2
million, up $7.8 million or 1.0%. Gross margin for the full year 2012 decreased
80 basis points to 33.8%, which was primarily attributable to a larger effect on
revenue of certain large projects at low margins, partially offset by the
effects of operational execution improvements and a sales mix shift towards
higher margin aftermarket sales.
EPD operating income for the fourth quarter of 2012 decreased to $121.8 million,
down $3.0 million or 2.4%, or 0.8% excluding negative currency effects of
approximately $2 million. Operating income for the full year 2012 increased to
$396.1 million, up $0.9 million or 0.2%, or 5.3% excluding negative currency
effects of approximately $20 million. The full year increase was primarily
attributable to the increase in gross profit, partially offset by increased
SG&A. Fourth quarter operating margin decreased 160 basis points to 17.1%.
Full year 2012 operating margin decreased 50 basis points to 16.5%.
"Full year constant currency bookings growth for EPD was driven by the chemical,
oil and gas and general industries. Full year sales growth was led by the North
America, Middle East and Asia Pacific regions. Operating margin of 16.5% for
2012 was solid in a mixed market environment, considering the negative impact
from currency and the shipment of certain large projects with low margins. Our
focus throughout the year on project selectivity, operational improvements and a
sales mix shift towards aftermarket helped offset some of this impact, as
evidenced by improvements in the second half of 2012," commented Pajonas.
Industrial Product Division (IPD)
IPD bookings for the fourth quarter of 2012 decreased to $206.7 million, down
$24.2 million or 10.5%, or 9.6% excluding negative currency effects of $2
million. Bookings for the full year 2012 increased to $964.3 million, up $58.9
million or 6.5%, or 10.4% excluding negative currency effects of approximately
$35 million. IPD sales for the fourth quarter of 2012 increased to $265.5
million, up $3.8 million or 1.5%, or 2.2% excluding negative currency effects of
approximately $2 million. Sales for the full year 2012 increased to $953.9
million, up $75.7 million or 8.6%, or 12.1% excluding negative currency effects
of approximately $31 million.
IPD gross profit for the fourth quarter of 2012 increased to $65.8 million, up
$8.6 million or 15.0%. Gross margin for the fourth quarter of 2012 increased
290 basis points to 24.8%. Gross profit for the full year 2012 increased to
$230.3 million, up $32.8 million or 16.6%. Gross margin for the full year 2012
increased 160 basis points to 24.1%, which was primarily attributable to charges
related to the IPD recovery plan incurred in 2011 that did not recur, lower
costs resulting from operational improvements and continued realization of
realignment savings, partially offset by a sales mix shift to lower margin
original equipment sales.
IPD operating income for the fourth quarter of 2012 increased to $31.7 million,
up $8.0 million or 33.8%. Operating income for the full year 2012 increased to
$99.5 million, up $36.6 million or 58.2%, or 64.5% excluding negative currency
effects of approximately $4 million. The full year increase was primarily
attributable to the increase in gross profit and a decrease in SG&A. Fourth
quarter 2012 operating margin increased 280 basis points to 11.9%. Full year
2012 operating margin increased 320 basis points to 10.4%.
"I am pleased with the progress IPD made in 2012, which has demonstrated that
its recovery plan remains on track," Pajonas added. "IPD delivered double-digit
constant currency improvements in bookings and sales for the full year, which
were driven by activity in the oil and gas and chemical industries. Both gross
margin and operating margin improved for the full year and fourth quarter,
resulting from the operational improvements, continued realization of
realignment savings and SG&A cost controls that are part of the recovery plan."
Flow Control Division (FCD)
FCD bookings for the fourth quarter of 2012 decreased to $354.2 million, down
$23.4 million or 6.2%, or 4.9% excluding negative currency effects of
approximately $5 million. Bookings for the full year 2012 decreased to $1.53
billion, down $76.2 million or 4.8%, or 0.8% excluding negative currency effects
of approximately $63 million. FCD sales for the fourth quarter of 2012
increased to $396.9 million, up $16.6 million or 4.4%, or 5.7% excluding
negative currency effects of approximately $5 million. Sales for the full year
2012 increased to $1.56 billion, up $83.8 million or 5.7%, or 10.2% excluding
negative currency effects of approximately $67 million.
FCD gross profit for the fourth quarter of 2012 increased to $142.3 million, up
$9.6 million or 7.2%. Gross margin for the fourth quarter of 2012 increased
100 basis points to 35.9%. Gross profit for the full year 2012 increased to
$541.4 million, up $29.9 million or 5.8%. Gross margin for the full year 2012
was 34.8%, which was comparable to 2011.
FCD operating income for the fourth quarter of 2012 increased to $69.0 million,
up $6.9 million or 11.1%, or 12.7% excluding negative currency effects of
approximately $1 million. Operating income for the full year 2012 increased to
$253.4 million, up $20.1 million or 8.6%, or 13.8% excluding negative currency
effects of approximately $12 million. The full year increase was primarily
attributable to the increase in gross profit, partially offset by an increase in
SG&A, which was attributable to increased selling and research and development
costs. Fourth quarter 2012 operating margin increased 110 basis points to
17.4%. Full year 2012 operating margin increased 50 basis points to 16.3%.
"FCD delivered solid performance, even against a strong 2011 compare. Full year
bookings decreased slightly on a constant currency basis, as increased activity
in the Middle East was offset by decreases in Europe and Latin America.
However, full year sales increased a double-digit percentage on a constant
currency basis, led by strong original equipment sales into Asia Pacific and
North America, which offset decreases in Europe. The 50 basis point improvement
in operating margin, supported by a 60 basis point improvement in SG&A leverage,
demonstrated FCD's ability to deliver continued strong operational performance,"
concluded Pajonas.
Fourth Quarter and Full Year 2012 Results Conference Call
Flowserve will host its conference call with the financial community on Friday,
February 22 at 11:00 AM Eastern. Mark Blinn, president and chief executive
officer, as well as other members of the management team will be presenting.
The call can be accessed by shareholders and other interested parties at the
Flowserve Web site at www.flowserve.com under the "Investor Relations" section.
Corporate Actions
In a separate press release, also issued today, Flowserve announced a number of
corporate actions recently approved by its Board of Directors including a 16.7%
increase in its dividend to 42 cents per share, payable April 12, 2013, a
replenished share repurchase authorization to $750 million, and a 3-for-1 stock
split of the company's common stock, subject to shareholder action. The company
encourages investors to review the separate press release for more information
and detail on these corporate actions.
CONSOLIDATED
BALANCE SHEETS
December 31, December 31,
(Amounts in
thousands, 2012 2011
except per
share data)
ASSETS
Current
assets:
Cash and cash $ 304,252 $ 337,356
equivalents
Accounts
receivable, 1,103,724 1,060,249
net
Inventories, 1,086,663 1,008,379
net
Deferred taxes 151,093 121,905
Prepaid
expenses and 94,484 100,465
other
Total current 2,740,216 2,628,354
assets
Property,
plant and 654,179 598,746
equipment, net
Goodwill 1,053,852 1,045,077
Deferred taxes 26,706
17,843
Other
intangible 150,075 163,482
assets, net
Other assets, 185,930 169,112
net
Total assets $ 4,810,958 $ 4,622,614
LIABILITIES
AND EQUITY
Current
liabilities:
Accounts $ 616,900 $ 597,342
payable
Accrued 906,593 808,601
liabilities
Debt due
within one 59,478 53,623
year
Deferred taxes
7,654 10,755
Total current 1,590,625 1,470,321
liabilities
Long-term debt
due after one 869,116 451,593
year
Retirement
obligations 456,742 422,470
and other
liabilities
Shareholders'
equity:
Common shares,
$1.25 par 73,664 73,664
value
Shares
authorized -
120,000
Shares issued
- 58,931 and
58,931,
respectively
Capital in
excess of par 615,183 621,083
value
Retained 2,579,308 2,205,524
earnings
Treasury
shares, at
cost - 10,796 (1,164,496)
and 5,025 (424,052)
shares,
respectively
Deferred
compensation 10,870 9,691
obligation
Accumulated
other
comprehensive (224,310) (216,097)
loss
Total
Flowserve
Corporation 1,890,219 2,269,813
Shareholders'
Equity
Noncontrolling
interests 4,256 8,417
Total equity 1,894,475 2,278,230
Total
liabilities $ 4,810,958 $ 4,622,614
and equity
CONSOLIDATED
STATEMENTS OF
INCOME
Year Ended December 31,
(Amounts in
thousands, 2012 2011 2010
except per
share data)
Sales $ 4,751,339 $ 4,510,201 $4,032,036
Cost of sales (3,170,388) (2,996,555) (2,622,343)
Gross profit 1,580,951 1,513,646
1,409,693
Selling,
general and
administrative (922,125) (914,080) (844,990)
expense
Net earnings
from 16,952 19,111
16,649
affiliates
Operating 675,778 618,677
581,352
income
Interest
expense (43,520) (36,181) (34,301)
Interest
income 954 1,581 1,575
Other
(expense) (21,647) 3,678 (18,349)
income, net
Earnings
before income 611,565 587,755
530,277
taxes
Provision for
income taxes (160,766) (158,524) (141,596)
Net earnings,
including 450,799 429,231
388,681
noncontrolling
interests
Less: Net
earnings
attributable
to (2,460) (649) (391)
noncontrolling
interests
Net earnings
attributable $ 448,339 $ 428,582 $
388,290
to Flowserve
Corporation
Net earnings
per share
attributable
to Flowserve
Corporation
common
shareholders:
Basic $ $
$
8.58 7.72 6.96
Diluted
8.51 7.64 6.88
Cash dividends $ $
$
declared per 1.44 1.28 1.16
share
CONSOLIDATED
STATEMENTS OF
INCOME
Three Months Ended December 31,
(Amounts in
thousands, 2012 2011
except per
share data)
Sales $ 1,328,211 $ 1,265,428
Cost of sales
(880,649) (845,402)
Gross profit 447,562 420,026
Selling,
general and
administrative (248,547) (232,462)
expense
Net earnings
from 3,738 5,796
affiliates
Operating 202,753 193,360
income
Interest
expense (13,644) (9,497)
Interest
income 227 482
Other income
(expense), net 502 (4,174)
Earnings
before income 189,838 180,171
taxes
Provision for
income taxes (47,901) (54,616)
Net earnings,
including 141,937 125,555
noncontrolling
interests
Less: Net
earnings
attributable
to (335) (458)
noncontrolling
interests
Net earnings
attributable $ 141,602 $ 125,097
to Flowserve
Corporation
Net earnings
per share
attributable
to Flowserve
Corporation
common
shareholders:
Basic $ $
2.85 2.27
Diluted
2.83 2.25
Cash dividends $ $
declared per 0.36 0.32
share
CONSOLIDATED
STATEMENTS OF
CASH FLOWS
Year Ended December 31,
(Amounts in 2012 2011 2010
thousands)
Cash flows -
Operating
activities:
Net earnings,
including $ 450,799 $ 429,231 $
388,681
noncontrolling
interests
Adjustments to
reconcile net
earnings to
net cash
provided by
operating
activities:
Depreciation 88,572
90,509
90,653
Amortization
of intangible 18,654
14,032
and other 16,908
assets
Loss on early
extinguishment 1,293 - 1,601
of debt
Net (gain)
loss on the
disposition of (10,521) (149) 356
assets
Gain on sale
of investment - - (3,993)
Excess tax
benefits from
stock-based (11,207) (5,668) (10,048)
payment
arrangements
Stock-based 35,403
32,428
compensation 32,090
Net earnings
from
affiliates,
net of (8,535) (5,213) (9,990)
dividends
received
Change in
assets and
liabilities,
net of
acquisitions:
Accounts
receivable, (35,074) (243,118) (51,974)
net
Inventories,
net (72,706) (139,754) (52,905)
Prepaid
expenses and (4,863) (12,227) (2,363)
other
Other assets,
net 2,393 (3,629) 6,763
Accounts 18,179
70,741
payable 45,845
Accrued
liabilities 90,773
and income (6,901) (125,591)
taxes payable
Retirement
obligations
and other (21,553) 6,682 (20,296)
liabilities
Net deferred
27,824
taxes (24,477) 13,463
Net cash flows
provided by 517,130 218,213
355,775
operating
activities
Cash flows -
Investing
activities:
Capital
expenditures (135,539) (107,967) (102,002)
Payments for
acquisitions,
net of cash (3,996) (90,505) (199,396)
acquired
Proceeds from
disposal of 16,933 4,269
11,030
assets
Affiliate
investment (3,825) - 3,651
activity, net
Net cash flows
used by
investing (126,427) (194,203) (286,717)
activities
Cash flows -
Financing
activities:
Excess tax
benefits from
stock-based 11,207 5,668
10,048
payment
arrangements
Payments on
long-term debt (480,000) (25,000) (544,016)
Proceeds from
issuance of 498,075 - -
senior notes
Proceeds from
issuance of 400,000 -
500,000
long-term debt
Proceeds from
short-term 475,000 - -
financing
Payments on
short-term (475,000) - -
financing
Payments of
deferred loan (9,901) - (11,596)
costs
Borrowings
under other
financing 5,807 1,581 2,421
arrangements,
net
Repurchases of
common shares (771,942) (150,000) (46,015)
Payments of
dividends (73,765) (69,557) (63,582)
Other
(8,403) (1,648) 9,827
Net cash flows
used by
financing (428,922) (238,956) (142,913)
activities
Effect of
exchange rate
changes on 5,115 (5,277) (22,886)
cash
Net change in
cash and cash (33,104) (220,223) (96,741)
equivalents
Cash and cash
equivalents at 337,356 557,579
654,320
beginning of
year
Cash and cash
equivalents at $ 304,252 $ 337,356 $
557,579
end of year
Income taxes
paid (net of $ 158,433 $ 113,921 $
135,892
refunds)
Interest paid 33,625
31,009
32,368
CONSOLIDATED
QUARTERLY
FINANCIAL DATA
(Amounts in
millions,
except per
share data)
2012
Quarter 4th 3rd 2nd 1st
Sales $ 1,328.2 $ 1,165.9 $
1,182.2 $1,075.0
Gross profit
447.6 389.6 384.6 359.2
Earnings
before income 189.8 144.6 148.1 129.1
taxes
Net earnings
attributable
to Flowserve 141.6 106.3 107.3 93.1
Corporation
Earnings per
share (1):
Basic $ $
$ $
2.85 2.09 1.99 1.71
Diluted
2.83 2.07 1.98 1.69
2011
Quarter 4th 3rd 2nd 1st
Sales $ 1,265.4 $ 1,121.8 $
1,125.8 $
997.2
Gross profit
420.0 376.6 369.3 347.7
Earnings
before income 180.2 140.0 137.0 130.6
taxes
Net earnings
attributable
to Flowserve 125.1 107.8 98.7 97.0
Corporation
Earnings per
share (1):
Basic $ $
$ $
2.27 1.94 1.77 1.74
Diluted
2.25 1.92 1.76 1.72
(1) Earnings
per share is
computed
independently
for each of
the quarters
presented.
The sum of the
quarters may
not equal the
total year
amount due to
the impact of
changes in
weighted
average
quarterly
shares
outstanding.
SEGMENT
INFORMATION
ENGINEERED
PRODUCT Three Months Ended December 31,
DIVISION
(Amounts in
millions, 2012 2011
except
percentages)
Bookings $ 558.4 $
590.0
Sales
714.2 666.1
Gross profit
239.8 230.1
Gross profit 33.6% 34.5%
margin
Operating
income 121.8 124.8
Operating 17.1% 18.7%
margin
INDUSTRIAL
PRODUCT Three Months Ended December 31,
DIVISION
(Amounts in
millions, 2012 2011
except
percentages)
Bookings $ 206.7 $
230.9
Sales
265.5 261.7
Gross profit
65.8 57.2
Gross profit 24.8% 21.9%
margin
Operating
income 31.7 23.7
Operating 11.9% 9.1%
margin
FLOW CONTROL Three Months Ended December 31,
DIVISION
(Amounts in
millions, 2012 2011
except
percentages)
Bookings $ 354.2 $
377.6
Sales
396.9 380.3
Gross profit
142.3 132.7
Gross profit 35.9% 34.9%
margin
Operating
income 69.0 62.1
Operating 17.4% 16.3%
margin
SEGMENT
INFORMATION
ENGINEERED
PRODUCT Year Ended December 31,
DIVISION
(Amounts in
millions, 2012 2011 2010
except
percentages)
Bookings $ 2,373.1 $ 2,333.5 $
2,242.0
Sales 2,403.1
2,152.7
2,321.4
Gross profit
811.2 803.4 782.9
Gross profit 33.8% 34.6% 36.4%
margin
Operating
income 396.1 395.2 412.6
Operating 16.5% 17.0% 19.2%
margin
INDUSTRIAL
PRODUCT Year Ended December 31,
DIVISION
(Amounts in
millions, 2012 2011 2010
except
percentages)
Bookings $ 964.3 $
$ 827.5
905.4
Sales
953.9 878.2 800.2
Gross profit
230.3 197.5 204.7
Gross profit 24.1% 22.5% 25.6%
margin
Operating
income 99.5 62.9 68.5
Operating 10.4% 7.2% 8.6%
margin
FLOW CONTROL Year Ended December 31,
DIVISION
(Amounts in
millions, 2012 2011 2010
except
percentages)
Bookings $ 1,526.8 $ 1,603.0 $
1,306.6
Sales 1,557.1
1,197.5
1,473.3
Gross profit
541.4 511.5 422.3
Gross profit 34.8% 34.7% 35.3%
margin
Operating
income 253.4 233.3 180.4
Operating 16.3% 15.8% 15.1%
margin
###
Flowserve Contacts
Investor Contacts:
Mike Mullin, director, Investor Relations (972) 443-6636
Jay Roueche, vice president, IR & 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
www.flowserve.com.
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#1679408]
