Flowserve Corporation (NYSE: FLS), a leading provider of flow
control products and services for the global infrastructure
markets, today is holding its 2018 Analyst Day meeting in New York
City.
Speaking at an event in the Grand Hyatt Hotel, Flowserve’s
management team will provide an overview of the company’s strategy,
including an update on the Flowserve 2.0 transformation.
Additionally, the company will introduce new 4-year financial
targets, which include:
- Average revenue growth of 200 basis
points above market levels through 2022
- Fiscal year 2022 operating margins
between 15%-17%
- Free cash flow generation of 100%+ of
net income in full year 2022
- Return on Invested Capital between
15%-20% in 2022
“As we continue to work on delivering a strong close to the
current year, Flowserve is aggressively positioning itself for
success in 2019 and beyond,” stated Scott Rowe, Flowserve’s
president and chief executive officer. “We believe our Flowserve
2.0 strategic initiatives will position the company well for above
market growth and provide substantial financial improvement in the
years ahead. Today we are presenting new 2022 financial targets
that underscore our earnings potential once the Flowserve 2.0
transformation is complete. Our transformation efforts are intended
to deliver outsized growth through a market-led, customer centric
focus, create a flexible cost structure and establish an operating
platform utilizing enterprise wide processes. Through successful
execution of our plan, we are confident in our ability to drive
significant value for our customers, associates and
shareholders.”
Flowserve today will also reiterate its 2018 financial guidance,
which was last provided on November 7, 2018. Additionally, the
company will announce that it plans to combine its Industrial
Product Division and Engineered Product Division segments into a
single financial reporting segment, known as the Flowserve Pumps
Division, beginning in 2019. Flowserve believes this unified
structure will enable the company to better serve customers and
operate more efficiently. David J. Wilson, current president of the
Industrial Product Division, will lead the new Flowserve Pumps
operation.
For shareholders and other interested parties, a live audio
webcast of Flowserve’s Analyst Day presentation, along with the
corresponding slides, will be available through the Investor
Relations section of www.flowserve.com beginning today at 8:30 am
ET. A taped webcast, with the related presentation materials, will
also be available on the company’s website following the live
event.
About Flowserve
Flowserve Corp. is one of the world’s leading providers of fluid
motion and control products and services. Operating in more than 50
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," “targets” 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 global
economic conditions 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; economic, political and other risks associated
with our international operations, including military actions or
trade embargoes that could affect customer markets, particularly
North African, Russian and 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; increased aging and slower collection
of receivables, particularly in Latin America and other emerging
markets; our exposure to fluctuations in foreign currency exchange
rates, including in hyperinflationary countries such as Venezuela
and Argentina; our furnishing of products and services to nuclear
power plant facilities and other critical processes; 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 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; access to public and private
sources of debt financing; our inability to protect our
intellectual property in the U.S., as well as in foreign countries;
obligations under our defined benefit pension plans; our internal
control over financial reporting may not prevent or detect
misstatements because of its inherent limitations, including the
possibility of human error, the circumvention or overriding of
controls, or fraud; the recording of increased deferred tax asset
valuation allowances in the future or the impact of tax law changes
on such deferred tax assets could affect our operating results; if
we are not able to successfully execute and realize the expected
financial benefits from our strategic realignment and other
cost-savings initiatives, including with respect to our Flowserve
2.0 transformation initiative, our business could be adversely
affected; ineffective internal controls could impact the accuracy
and timely reporting of our business and financial results; 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.
The Company reports its financial results in accordance with
U.S. generally accepted accounting principles (GAAP). However,
management believes that non-GAAP financial measures which exclude
certain non-recurring items present additional useful comparisons
between current results and results in prior operating periods,
providing investors with a clearer view of the underlying trends of
the business. Management also uses these non-GAAP financial
measures in making financial, operating, planning and compensation
decisions and in evaluating the Company's performance. Throughout
our materials we refer to non-GAAP measures as “Adjusted.” Non-GAAP
financial measures, which may be inconsistent with similarly
captioned measures presented by other companies, should be viewed
in addition to, and not as a substitute for, the Company’s reported
results prepared in accordance with GAAP.
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version on businesswire.com: https://www.businesswire.com/news/home/20181213005214/en/
Flowserve ContactsInvestor Contacts:Jay Roueche, Vice President,
Investor Relations & Treasurer (972) 443-6560Mike Mullin,
Director, Investor Relations (972) 443-6636
Media Contact:Lars Rosene, Vice President, Corporate &
Marketing Communications (972) 443-6644
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