CIRCOR Continues Strategic Shift Away from Upstream Oil and Gas
October 02 2019 - 4:25PM
Business Wire
Announces Intent to Sell Distributed Valves
Business
CIRCOR International, Inc. (NYSE: CIR) today announced its
intent to sell its Distributed Valves business, consistent with its
strategic shift away from upstream oil & gas.
“This is an important step in CIRCOR’s transformation as we
continue to diversify away from upstream oil & gas and focus on
more attractive end markets with enhanced growth and earnings
potential,” said Scott Buckhout, President and Chief Executive
Officer of CIRCOR. "In conjunction with this strategic shift, the
Energy Group’s overhead will be optimized by the end of the year,
which is expected to generate annual run rate savings of
approximately $4 million."
“The management team is successfully executing the Company’s
strategic plan and will continue to take the necessary actions that
will best position CIRCOR to deliver enhanced value for
shareholders,” concluded Buckhout.
These actions, along with the divestiture of Engineered Values,
are consistent with the 18-month plan communicated in June 2019.
The Company’s segment operating loss attributable to the
Distributed Valves and Engineered Valves businesses was
approximately $8 million for the six months ended June 30, 2019.
Distributed Valves and Engineered Valves will be reported as
discontinued operations.
About CIRCOR International, Inc.
CIRCOR International, Inc. designs, manufactures and markets
highly engineered products and sub-systems for markets including
Industrial, Energy and Aerospace & Defense. CIRCOR has a
diversified product portfolio with recognized, market-leading
brands that fulfill its customers’ unique application needs. The
Company’s strategy is to grow organically and through complementary
acquisitions; simplify the Company; achieve world class operational
excellence through the application of the CIRCOR Operating System;
and attract and retain top industry talent. For more information,
visit the Company's investor relations website at
http://investors.circor.com.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Reliance should not be placed on forward-looking
statements because they involve unknown risks, uncertainties and
other factors, which are, in some cases, beyond the control of
CIRCOR. Any statements in this press release that are not
statements of historical fact are forward-looking statements,
including, but not limited to, the sale of the Distributed Valves
business and the run-rate savings from optimization of the Energy
Group’s overhead. Actual events, performance or results could
differ materially from the anticipated events, performance or
results expressed or implied by such forward-looking statements.
Important factors that could cause actual results to vary from
expectations include, but are not limited to: our ability to
execute a sale of the Distributed Valves business; our ability to
respond to competitive developments and to grow our business, both
domestically and internationally; changes in the cost, quality or
supply of raw materials; our ability to comply with our debt
obligations; our ability to successfully implement our acquisition,
divesture or restructuring strategies, including our integration of
the Fluid Handling business; the impact of recently completed and
planned dispositions, including the planned disposition of the
Distributed Valves business; changes in industry standards or
government regulations, both in the United States and
internationally; and our ability to operate our manufacturing
facilities at current or higher levels and respond to increases in
manufacturing costs. BEFORE MAKING ANY INVESTMENT DECISIONS
REGARDING OUR COMPANY, WE STRONGLY ADVISE YOU TO READ THE SECTION
ENTITLED "RISK FACTORS" IN OUR MOST RECENT ANNUAL REPORT ON FORM
10-K AND SUBSEQUENT QUARTERLY REPORTS ON FORM 10-Q, WHICH CAN BE
ACCESSED UNDER THE "INVESTORS" LINK OF OUR WEBSITE AT
WWW.CIRCOR.COM. We undertake no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20191002005832/en/
CIRCOR International, Inc. David F. Mullen, Senior Vice
President (781) 270-1200 CIR@investorrelations.com
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