Flowserve Corporation Reports Third Quarter 2023 Results; Raises 2023 Financial Guidance

• Raised full-year Revenue and Adjusted EPS guidance range following strong year-to-date performance and expectations for the 2023 fourth quarter

• Reported and Adjusted¹ Earnings Per Share (EPS)² of 35 cents and 50 cents, respectively, continuing strong operational performance

• Delivered solid bookings of $1.07 billion, including strong aftermarket awards in excess of $580 million, maintaining near-record backlog levels at $2.77 billion

• Drove revenue growth of 25.4% and generated a 630 basis point improvement in adjusted operating margin compared to prior year

• Improved operating cash flow by over $240 million year-to-date, with $81 million of operating cash flow generated in the 2023 third quarter

DALLAS–(BUSINESS WIRE)–Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, today announced its financial results for the third quarter ended September 30, 2023.

Third Quarter 2023 Highlights (all comparisons to the 2022 third quarter, unless otherwise noted)

• Reported Earnings Per Share (EPS) of $0.35 and Adjusted Earnings Per Share (EPS)¹ of $0.50, compared to $0.29 and $0.09, respectively
  • Third quarter 2023 Reported EPS includes after-tax adjusted expenses of $20.5 million, comprised primarily of realignment charges, below-the-line foreign exchange, and the release of a tax valuation allowance benefit
  • Both Reported and Adjusted EPS were impacted by an $10.7 million (6 cents per share³) non-cash expense, resulting from an actuarial-determined assessment of certain long-term liabilities
• Total bookings were $1.07 billion, down $155.8 million or 12.7%. On a constant currency basis⁴, total bookings were down $175.4 million or 14.3%
  • Third quarter 2022 bookings included over $210 million of original equipment orders related to a Middle East gas project, representing one of Flowserve’s largest awards ever
  • Original equipment bookings were $485.3 million, down $194.4 million or 28.6%. On a constant currency basis⁴, original equipment bookings were down $202.0 million or 29.7%
  • Aftermarket bookings were $582.2 million, up $38.6 million or 7.1%. On a constant currency basis⁴, aftermarket bookings were up $26.6 million or 4.9%
• Sales were $1.09 billion, up $221.8 million or 25.4%. On a constant currency basis⁴, sales were up $200.7 million or 23.0%
  • Original equipment sales were $529.2 million, up $117.1 million or 28.4%. On a constant currency basis⁴, original equipment sales were up $106.8 million or 25.9%
  • Aftermarket sales were $565.5 million, up $104.7 million or 22.7%. On a constant currency basis⁴, aftermarket sales were up $94.0 million or 20.4%
• Reported gross and operating margins were 29.0% and 6.4%, up 160 and 360 basis points, respectively
  • Adjusted gross and operating margins⁵ were 29.7% and 8.7%, up 230 and 630 basis points, respectively
  • Both Reported and Adjusted third quarter 2023 operating margins were impacted by the $10.7 million non-cash expense, which reduced operating margins by approximately 100 basis points⁶
• Backlog of $2.77 billion, up $170.9 million or 6.6% compared to the 2022 third quarter
  • Book-to-bill solid at 1.03x year-to-date
• Completed actions to achieve the 2023 cost-reduction target of $50 million annualized savings

“We delivered strong third quarter results, including significant revenue and earnings growth, while building on the operating momentum of the last year,” said Scott Rowe, Flowserve’s President and Chief Executive Officer. “Our new organizational model is driving speed, accountability, and cost efficiency throughout the company. The combination of our improved operating performance and our positive market outlook gives us the confidence to increase our full year revenue and adjusted EPS guidance range for the third time this year.”

Rowe concluded, “Driven by our 3D strategy, Flowserve is well-positioned to capture accelerated growth from energy transition investments and decarbonization initiatives. Flowserve is also competitively differentiated to capitalize in our traditional markets by ensuring global energy security. Additionally, we expect both aftermarket and MRO opportunities will remain strong through 2024 and beyond. As a result of these combined dynamics, we continue to believe we are in the early stages of a multi-year upcycle. Our focus remains on profitably converting our near-record $2.8 billion backlog to deliver solid revenue and earnings growth over the coming years, while creating long-term value for our shareholders, associates and customers.”

Revised 2023 Guidance²

Flowserve is raising its Revenue and Adjusted EPS guidance metrics for 2023, as well as updating or re-affirming certain other financial metrics, as shown in the table below:

		Prior Target Range7	Revised Target Range
	Revenue Growth	Up 16.0% to 18.0%	Up 18% to 19%
	Reported Earnings Per Share	$1.40 – $1.65	$1.40 – $1.50
	Adjusted Earnings Per Share	$1.85 – $2.00	$1.95 – $2.05
	Net Interest Expense	~$60 million	Re-affirmed
	Adjusted Tax Rate	~20%	Re-affirmed
	Capital Expenditures	$75 – $85 million	Re-affirmed

Flowserve’s 2023 Adjusted EPS target range excludes expected adjusted items including identified realignment charges of approximately $55 million, as well as the potential impact of below-the-line foreign currency effects and certain other discrete items which may arise during the course of the year, including the potential for additional realignment expense.

Third Quarter 2023 Results Conference Call

Flowserve will host its conference call with the financial community on Thursday, October 26^th at 11:00 AM Eastern. Scott Rowe, 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 www.flowserve.com under the “Investor Relations” section.

1 See Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) and Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) tables for a detailed reconciliation of reported results to adjusted measures.

2 Adjusted 2023 EPS excludes identified realignment expenses, the impact from other specific discrete items (including terminated Velan acquisition) and below-the-line foreign currency effects and utilizes current FX rates and approximately 132 million fully diluted shares.

3 EPS impact calculated by tax effecting the $10.7 million expense at 25.6% effective tax rate and dividing by 132 million shares

4 Constant currency is a non-GAAP financial measure. We have calculated constant currency amounts and the associated currency effects on operations by translating current year results on a monthly basis at prior year exchange rates for the same periods

5 Adjusted gross and operating margins are calculated by dividing adjusted gross profit and adjusted operating income, respectively, by revenues. Adjusted gross profit and adjusted operating income are derived by excluding the adjusted items. See Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) and Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) tables for a detailed reconciliation..

6 Basis point impact calculated as the $10.7 million non-cash charge in SG&A divided by total sales

7 Prior target range was provided as of August 1, 2023, and included revisions from Flowserve’s initial guidance range provided February 10, 2023 and its previously revised range on May 2, 2023

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Three Months Ended September 30,
(Amounts in thousands, except per share data)	2023				2022
Sales	$	1,094,718			$	872,881
Cost of sales		(777,024	)			(633,304	)
Gross profit		317,694				239,577
Selling, general and administrative expense		(252,065	)			(221,142	)
Net earnings from affiliates		4,627				5,782
Operating income		70,256				24,217
Interest expense		(17,273	)			(11,582	)
Interest income		2,134				1,141
Other income (expense), net		(13,710	)			28,676
Earnings before income taxes		41,407				42,452
Benefit from (provision for) income taxes		11,186				(1,817	)
Net earnings, including noncontrolling interests		52,593				40,635
Less: Net earnings attributable to noncontrolling interests		(6,437	)			(2,235	)
Net earnings attributable to Flowserve Corporation	$	46,156			$	38,400
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic	$	0.35			$	0.29
Diluted		0.35				0.29
Weighted average shares – basic		131,183				130,703
Weighted average shares – diluted		132,026				131,402

Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited)
(Amounts in thousands, except per share data)
Three Months Ended September 30, 2023	Gross Profit			Selling, General & Administrative Expense			Operating Income			Other Income (Expense), Net			Income Taxes			Earnings Attributable to Noncontrolling Interests			Net Earnings (Loss)			Effective Tax Rate			Diluted EPS
Reported	$	317,694		$	252,065		$	70,256		$	(13,710	)	$	(11,186	)	$	6,437		$	46,156			-27.0	%	$	0.35
Reported as a percent of sales		29.0	%		23.0	%		6.4	%		-1.3	%		-1.0	%		0.6	%		4.2	%
Realignment charges (a)		7,240			(14,954	)		22,194			–			4,250			–			17,944			19.1	%		0.14
Acquisition related (b)		–			(2,539	)		2,539			–			443			–			2,096			17.4	%		0.02
Correction of prior period errors (c)		–			–			–			–			–			(3,559	)		3,559			0	%		0.03
Discrete tax benefit (d)		–			–			–			–			13,000			–			(13,000	)		0	%		-0.10
Below-the-line foreign exchange impacts (e)		–			–			–			12,164			2,276			–			9,888			18.7	%		0.07
Adjusted	$	324,934		$	234,572		$	94,989		$	(1,546	)	$	8,783		$	2,878		$	66,643			11.2	%	$	0.50
Adjusted as a percent of sales		29.7	%		21.4	%		8.7	%		-0.1	%		0.8	%		0.3	%		6.1	%
Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs.
(b) Charges represent costs associated with a terminated acquisition
(c) Represents the amount to correct the cumulative impact of prior period errors
(d) Represents a discrete tax benefit due to release of tax valuation allowance on the net deferred tax assets in a foreign jurisdiction. The associated tax expense was adjusted out in 2015.
(e) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency.
Three Months Ended September 30, 2022	Gross Profit			Selling, General & Administrative Expense			Operating Income			Other Income (Expense), Net			Income Taxes			Net Earnings (Loss)			Effective Tax Rate			Diluted EPS
Reported	$	239,577		$	221,142		$	24,217		$	28,676		$	1,817		$	38,400			4.2	%	$	0.29
Reported as a percent of sales		27.4	%		25.3	%		2.8	%		3.3	%		0.2	%		4.4	%
Realignment charges (a)		(395	)		(99	)		(296	)		–			(94	)		(202	)		31.8	%		0.00
Discrete asset write-downs (b)		(209	)		2,523			(2,732	)		–			(624	)		(2,108	)		22.8	%		-0.02
Below-the-line foreign exchange impacts (c)		–			–			–			(30,482	)		(6,730	)		(23,752	)		22.1	%		-0.18
Adjusted	$	238,973		$	223,566		$	21,189		$	(1,806	)	$	(5,631	)	$	12,338			-63.0	%	$	0.09
Adjusted as a percent of sales		27.4	%		25.6	%		2.4	%		-0.2	%		-0.6	%		1.4	%
Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs credit as a result of realignment programs of which $89 is non-cash.
(b) Represents reversals of expenses that were adjusted for Non-GAAP measures in previous periods
(c) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency.

SEGMENT INFORMATION
(Unaudited)
FLOWSERVE PUMP DIVISION	Three Months Ended September 30,
(Amounts in millions, except percentages)	2023				2022
Bookings	$	734.7			$	925.8
Sales		766.2				592.6
Gross profit		220.3				170.0
Gross profit margin		28.8	%			28.7	%
SG&A		146.7				136.9
Segment operating income		78.3				38.9
Segment operating income as a percentage of sales		10.2	%			6.6	%
FLOW CONTROL DIVISION	Three Months Ended September 30,
(Amounts in millions, except percentages)	2023				2022
Bookings	$	330.5			$	300.0
Sales		330.7				282.6
Gross profit		97.6				78.2
Gross profit margin		29.5	%			27.7	%
SG&A		54.0				48.5
Segment operating income		43.5				29.7
Segment operating income as a percentage of sales		13.2	%			10.5	%

Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited)
(Amounts in thousands)
Flowserve Pump Division
Three Months Ended September 30, 2023	Gross Profit			Selling, General & Administrative Expense			Operating Income				Three Months Ended September 30, 2022	Gross Profit			Selling, General & Administrative Expense			Operating Income
Reported	$	220,321		$	146,679		$	78,269			Reported	$	170,046		$	136,915		$	38,912
Reported as a percent of sales		28.8	%		19.1	%		10.2	%		Reported as a percent of sales		28.7	%		23.1	%		6.6	%
Realignment charges (a)		6,141			(9,929	)		16,070			Realignment charges (a)		(417	)		(74	)		(343	)
Adjusted	$	226,462		$	136,750		$	94,339			Discrete asset write-downs (b)		(209	)		2,523			(2,732	)
Adjusted as a percent of sales		29.6	%		17.8	%		12.3	%		Adjusted	$	169,420		$	139,364		$	35,837
											Adjusted as a percent of sales		28.6	%		23.5	%		6.0	%
Flow Control Division
Three Months Ended September 30, 2023	Gross Profit			Selling, General & Administrative Expense			Operating Income				Three Months Ended September 30, 2022	Gross Profit			Selling, General & Administrative Expense			Operating Income
Reported	$	97,563		$	54,016		$	43,547			Reported	$	78,173		$	48,454		$	29,718
Reported as a percent of sales		29.5	%		16.3	%		13.2	%		Reported as a percent of sales		27.8	%		17.2	%		10.6	%
Realignment charges (a)		1,099			(1,572	)		2,671			Realignment charges (a)		22			(7	)		29
Acquisition related (b)		–			(2,539	)		2,539			Adjusted	$	78,195		$	48,447		$	29,747
Adjusted	$	98,662		$	49,905		$	48,757			Adjusted as a percent of sales		27.8	%		17.2	%		10.6	%
Adjusted as a percent of sales		29.8	%		15.1	%		14.7	%
Note: Amounts may not calculate due to rounding											Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs.											(a) Charges represent realignment costs credit as a result of realignment programs of which $89 is non-cash.
(b) Charges represent costs associated with a terminated acquisition											(b) Represents reversal of expenses that were adjusted for Non-GAAP measures in previous periods.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
	Nine Months Ended September 30,
(Amounts in thousands, except per share data)	2023				2022
Sales	$	3,155,399			$	2,576,161
Cost of sales		(2,218,114	)			(1,877,108	)
Gross profit		937,285				699,053
Selling, general and administrative expense		(726,424	)			(621,956	)
Net earnings from affiliates		13,229				14,821
Operating income		224,090				91,918
Interest expense		(50,039	)			(33,337	)
Interest income		5,535				2,938
Other income (expense), net		(27,271	)			28,152
Earnings before income taxes		152,315				89,671
Benefit from (provision for) income taxes		(14,571	)			(16,618	)
Net earnings, including noncontrolling interests		137,744				73,053
Less: Net earnings attributable to noncontrolling interests		(13,618	)			(5,694	)
Net earnings attributable to Flowserve Corporation	$	124,126			$	67,359
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic	$	0.95			$	0.52
Diluted		0.94				0.51
Weighted average shares – basic		131,095				130,604
Weighted average shares – diluted		131,864				131,233

Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited)
(Amounts in thousands, except per share data)
Nine Months Ended September 30, 2023	Gross Profit			Selling, General & Administrative Expense			Operating Income			Other Income (Expense), Net			Income Taxes			Earnings Attributable to Noncontrolling Interests			Net Earnings (Loss)			Effective Tax Rate			Diluted EPS
Reported	$	937,285		$	726,424		$	224,090		$	(27,271	)	$	14,571		$	13,618		$	124,126			9.6	%	$	0.94
Reported as a percent of sales		29.7	%		23.0	%		7.1	%		-0.9	%		0.5	%		0.4	%		3.9	%
Realignment charges (a)		11,548			(39,076	)		50,624			–			10,415			–			40,209			20.6	%		0.30
Acquisition related (b)		–			(8,491	)		8,491			–			1,997			–			6,494			23.5	%		0.05
Discrete asset write-downs (c)(d)(e)		1,969			(3,955	)		5,924			–			1,517			–			4,407			25.6	%		0.03
Below-the-line foreign exchange impacts (f)		–			–			–			24,328			2,669			–			21,659			0.0	%		0.16
Correction of prior period errors (g)		–			–			–			–			–			(3,559	)		3,559			0.0	%		0.03
Discrete tax benefit (h)		–			–			–			–			13,000			–			(13,000	)		0.0	%		-0.10
Adjusted	$	950,802		$	674,902		$	289,129		$	(2,943	)	$	44,169		$	10,059		$	187,454			18.3	%	$	1.42
Adjusted as a percent of sales		30.1	%		21.4	%		9.2	%		-0.1	%		1.4	%		0.3	%		5.9	%
Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs of which $7,601 is non-cash.
(b) Charges represent costs associated with a terminated acquisition
(c) Charge represents a further expense of $1,834 associated with a sales contract that was initially reserved for in 2017.
(d) Charge represents a further $1,173 non-cash write-down of inventory associated with a customer sales contract that was originally determined to be uncollectible in 2020.
(e) Charge represents a $2,917 non-cash write-down of a licensing agreement.
(f) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency.
(g) Represents the amount to correct the cumulative impact of prior period errors
(h) Represents a discrete tax benefit due to release of tax valuation allowance on the net deferred tax assets in a foreign jurisdiction. The associated tax expense was adjusted out in 2015.
Nine Months Ended September 30, 2022	Gross Profit			Selling, General & Administrative Expense			Operating Income			Other Income (Expense), Net			Income Taxes			Net Earnings (Loss)			Effective Tax Rate			Diluted EPS
Reported	$	699,053		$	621,956		$	91,918		$	28,152		$	16,618		$	67,359			18.5	%	$	0.51
Reported as a percent of sales		27.1	%		24.1	%		3.6	%		1.1	%		0.6	%		2.6	%
Realignment charges (a)		(126	)		40			(166	)		–			(67	)		(99	)		40.4	%		0.00
Discrete asset write-downs (b)(c)(d)		9,844			(10,706	)		20,550			–			(694	)		21,244			-3.4	%		0.16
Below-the-line foreign exchange impacts (e)		–			–			–			(34,900	)		(7,761	)		(27,139	)		0.0	%		-0.20
Adjusted	$	708,771		$	611,290		$	112,302		$	(6,748	)	$	8,096		$	61,365			10.8	%	$	0.47
Adjusted as a percent of sales		27.5	%		23.7	%		4.4	%		-0.3	%		0.3	%		2.4	%
Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs of which $170 is non-cash.
(b) Charge represents a $3,036 non-cash asset write-down associated with the impairment of a trademark.
(c) Charges represent a $20,246 reserve of Russia-related financial exposures.
(d) Includes reversal of expenses that were adjusted for Non-GAAP measures in previous periods of $2,732
(e) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site’s respective functional currency.

SEGMENT INFORMATION
(Unaudited)
FLOWSERVE PUMP DIVISION	Nine Months Ended September 30,
(Amounts in millions, except percentages)	2023				2022
Bookings	$	2,222.3			$	2,433.6
Sales		2,231.7				1,783.1
Gross profit		668.6				510.9
Gross profit margin		30.0	%			28.7	%
SG&A		426.4				408.4
Segment operating income		255.3				117.3
Segment operating income as a percentage of sales		11.4	%			6.6	%
FLOW CONTROL DIVISION	Nine Months Ended September 30,
(Amounts in millions, except percentages)	2023				2022
Bookings	$	1,022.1			$	923.2
Sales		930.0				798.8
Gross profit		270.9				218.0
Gross profit margin		29.1	%			27.3	%
SG&A		172.7				142.7
Segment operating income		98.2				75.3
Segment operating income as a percentage of sales		10.6	%			9.4	%

Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited)
(Amounts in thousands)
Flowserve Pump Division
Nine Months Ended September 30, 2023	Gross Profit			Selling, General & Administrative Expense			Operating Income				Nine Months Ended September 30, 2022	Gross Profit			Selling, General & Administrative Expense			Operating Income
Reported	$	668,562		$	426,438		$	255,345			Reported	$	510,949		$	408,439		$	117,259
Reported as a percent of sales		30.0	%		19.1	%		11.4	%		Reported as a percent of sales		28.7	%		22.9	%		6.6	%
Realignment charges (a)		7,484			(11,996	)		19,480			Realignment charges (a)		(121	)		(151	)		30
Discrete asset write-downs (b)(c)(d)		1,969			(3,955	)		5,924			Discrete asset write-downs (b)(c)		8,730			(6,588	)		15,318
Adjusted	$	678,015		$	410,487		$	280,749			Adjusted	$	519,558		$	401,700		$	132,607
Adjusted as a percent of sales		30.4	%		18.4	%		12.6	%		Adjusted as a percent of sales		29.1	%		22.5	%		7.4	%
Flow Control Division
Nine Months Ended September 30, 2023	Gross Profit			Selling, General & Administrative Expense			Operating Income				Nine Months Ended September 30, 2022	Gross Profit			Selling, General & Administrative Expense			Operating Income
Reported	$	270,914		$	172,718		$	98,196			Reported	$	218,012		$	142,688		$	75,324
Reported as a percent of sales		29.1	%		18.6	%		10.6	%		Reported as a percent of sales		27.3	%		17.9	%		9.4	%
Realignment charges (a)		4,263			(10,478	)		14,741			Realignment charges (a)		56			(57	)		113
Acquisition related (e)		–			(8,491	)		8,491			Discrete asset write-downs (b)(d)		1,114			(4,118	)		5,232
Adjusted	$	275,177		$	153,749		$	121,428			Adjusted	$	219,182		$	138,513		$	80,669
Adjusted as a percent of sales		29.6	%		16.5	%		13.1	%		Adjusted as a percent of sales		27.4	%		17.3	%		10.1	%
Note: Amounts may not calculate due to rounding											Note: Amounts may not calculate due to rounding
(a) Charges represent realignment costs incurred as a result of realignment programs of which $7,601 is non-cash.											(a) Charges represent realignment costs incurred as a result of realignment programs of which $170 is non-cash.
(b) Charge represents a further expense of $1,834 associated with a sales contract that was initially reserved for in 2017.											(b) Charges represent the reserve of Russia-related financial exposures of $20,246.
(c) Charge represents a further $1,173 non-cash write-down of inventory associated with a customer sales contract that was originally determined to be uncollectible in 2020.											(c) Includes reversal of expenses that were adjusted for Non-GAAP measures in previous periods of $2,732
(d) Charge represents a $2,917 non-cash write-down of a licensing agreement.											(d) Charge represents a non-cash asset write-down of $3,036 associated with the impairment of a trademark.
(e) Charges represent costs associated with a terminated acquisition

Third Quarter and Year-to-Date 2023 – Segment Results
(dollars in millions, comparison vs. 2022 third quarter and year-to-date, unaudited)
			FPD												FCD
			3rd Qtr						YTD						3rd Qtr						YTD
Bookings			$	734.7					$	2,222.3					$	330.5					$	1,022.1
– vs. prior year				-191.1		-20.6	%			-211.3		-8.7	%			30.5		10.2	%			98.9		10.7	%
– on constant currency				-191.1		-22.4	%			-211.3		-8.8	%			30.5		9.2	%			98.9		11.7	%
Sales			$	766.2					$	2,231.7					$	–					$	930.0
– vs. prior year				173.6		29.3	%			448.6		25.2	%			48.1		17.0	%			131.2		16.4	%
– on constant currency				173.6		26.3	%			448.6		25.1	%			48.1		15.8	%			131.2		17.3	%
Gross Profit			$	220.3					$	668.6					$	97.6					$	270.9
– vs. prior year				29.6	%					30.9	%					24.8	%					24.3	%
Gross Margin (% of sales)				28.8	%					30.0	%					29.5	%					29.1	%
– vs. prior year (in basis points)			10 bps						130 bps						180 bps						180 bps
Operating Income			$	78.3					$	255.3					$	43.5					$	98.2
– vs. prior year				39.4		101.3	%			138.0		117.6	%			13.8		46.5	%			22.9		30.4	%
– on constant currency				39.4		93.9	%			138.0		121.7	%			13.8		46.6	%			22.9		32.8	%
Operating Margin (% of sales)				10.2	%					11.4	%					13.2	%					10.6	%
– vs. prior year (in basis points)			360 bps						480 bps						270 bps						120 bps
Adjusted Operating Income *			$	94.3					$	280.7					$	48.8					$	121.4
– vs. prior year				58.5		163.4	%			148.1		111.7	%			19.1		64.3	%			40.8		50.6	%
– on constant currency				58.5		155.5	%			148.1		115.2	%			19.1		64.3	%			40.8		52.9	%
Adj. Oper. Margin (% of sales)*				12.3	%					12.6	%					14.7	%					13.1	%
– vs. prior year (in basis points)			630 bps						520 bps						420 bps						300 bps
Backlog			$	1,959.0											$	829.7
* Adjusted Operating Income and Adjusted Operating Margin exclude realignment charges and other specific discrete items

Contacts

Flowserve

Investor:

Jay Roueche, Vice President, Investor Relations & Treasurer, (972) 443-6560

Mike Mullin, Director, Investor Relations, (214) 697-8568

Media:

Wes Warnock, Vice President, Corporate Communications & Public Affairs, (972) 443-6900

Read full story here