DALLAS--(BUSINESS WIRE)--Dec. 13, 2018--
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181213005214/en/
Source: Flowserve Corporation
Flowserve Contacts
Investor Contacts:
Jay Roueche, Vice
President, Investor Relations & Treasurer (972) 443-6560
Mike
Mullin, Director, Investor Relations (972) 443-6636
Media Contact:
Lars Rosene, Vice President, Corporate & Marketing
Communications (972) 443-6644