NEWS RELEASE
Flowserve Corporation Reports Third Quarter 2020 Results
11/05/20
-
Delivered Reported EPS of
$0.39 and Adjusted EPS of$0.50 on solid backlog execution -
Tracking ahead of plan on
$100 million cost reduction program -
Further traction on
Flowserve 2.0 transformation efforts while limiting pandemic disruptions - Substantial progress on new product development program, including 9 new and upgraded products
-
Strengthened liquidity with
$500 million notes offering, credit facility amendment and solid operating cash flow, which together bring current liquidity to$1.7 billion
Third Quarter 2020 Highlights (all comparisons to the 2019 third quarter, unless otherwise noted)[1]
-
Reported Earnings Per Share (EPS) of
$0.39 and Adjusted EPS[2] of$0.50 -
Reported EPS includes after-tax adjusted items of approximately
$14.3 million , including realignment, transformation and below-the-line foreign exchange impacts
-
Reported EPS includes after-tax adjusted items of approximately
-
Total bookings were
$806.1 million , down 21.2%, or 21.6% on a constant currency basis-
Original equipment bookings were
$381.0 million , or 47% of total bookings, down 28.3%, or 29.0% on a constant currency basis -
Aftermarket bookings were
$425.1 million , or 53% of total bookings, down 13.5%, or 13.6% on a constant currency basis
-
Original equipment bookings were
-
Sales were
$924.3 million , down 7.2%, or 7.7% on a constant currency basis-
Original equipment sales were
$479.4 million , down 5.6%, or 6.3% on a constant currency basis -
Aftermarket sales were
$444.9 million , down 8.8% reported and on a constant currency basis
-
Original equipment sales were
-
Reported gross and operating margins were 30.9% and 9.4%, respectively
- Adjusted gross and operating margins[3] were 31.5% and 10.9%, respectively
-
Backlog at
September 30, 2020 was$2.0 billion , down 4.2% sequentially
“We delivered a solid operating quarter as we continued to refine and improve our processes to more effectively manage the pandemic-related challenges,” said
“Despite the challenges with COVID, we continue to execute the
Outlook
Rowe concluded, “Looking forward, we are increasingly optimistic that our markets have stabilized, and we can expect a return to growth in 2021 as the world recovers from the COVID pandemic. I am confident that with continued
As announced on
Revision to Prior Periods
The company also announced today that in conjunction with its close process for the 2020 third quarter, the company identified and corrected immaterial accounting errors related to the recognition of a liability for unasserted asbestos claims, as well as certain other immaterial adjustments. As part of its review of this accounting treatment, the company retained a third-party actuarial consultant to review information pertaining to our potential asbestos liability. Based on the results of this analysis, the company recognized an ‘incurred but not reported’ (“IBNR”) liability during the year ended
The cumulative effect of these corrections resulted in an increase in liabilities including an IBNR for unasserted asbestos claims of approximately
While the revisions are not material to any prior annual or quarterly period, to enhance transparency, the company plans to provide revised comparative periods in future filings, including in its
Third Quarter 2020 Results Conference Call
[1] Prior period comparisons are impacted by the accounting revision related to incurred but not reported accruals for expected future asbestos litigation as well as certain other non-material adjustments further detailed in “Revisions to Prior Periods” section.
[2] See Reconciliation of Non-GAAP Measures table for detailed reconciliation of reported results to adjusted measures.
[3] 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 reconciliation of Non-GAAP Measures table for detailed reconciliation.
About
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: the impact of the global outbreak of COVID-19 on our business and operations; 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; if we are not able to successfully execute and realize the expected financial benefits from our strategic transformation and realignment initiatives, our business could be adversely affected; 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, trade embargoes, epidemics or pandemics or changes to tariffs or trade agreements that could affect customer markets, particularly North African, Russian and Middle Eastern markets and global oil and gas producers, and non-compliance with
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
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(Unaudited) | ||||||||
Three Months Ended |
||||||||
(Amounts in thousands, except per share data) |
2020 |
|
2019 - As Revised |
|||||
Sales |
$ |
924,301 |
|
$ |
995,709 |
|
||
Cost of sales |
|
(639,092 |
) |
|
(662,856 |
) |
||
Gross profit |
|
285,209 |
|
|
332,853 |
|
||
Selling, general and administrative expense |
|
(200,729 |
) |
|
(230,362 |
) |
||
Net earnings from affiliates |
|
2,842 |
|
|
2,087 |
|
||
Operating income |
|
87,322 |
|
|
104,578 |
|
||
Interest expense |
|
(14,710 |
) |
|
(13,981 |
) |
||
Interest income |
|
673 |
|
|
2,253 |
|
||
Other income (expense), net |
|
(963 |
) |
|
(8,477 |
) |
||
Earnings before income taxes |
|
72,322 |
|
|
84,373 |
|
||
Provision for income taxes |
|
(18,672 |
) |
|
(22,410 |
) |
||
Net earnings, including noncontrolling interests |
|
53,650 |
|
|
61,963 |
|
||
Less: Net earnings attributable to noncontrolling interests |
|
(2,647 |
) |
|
(2,121 |
) |
||
Net earnings attributable to |
$ |
51,003 |
|
$ |
59,842 |
|
||
Net earnings per share attributable to |
||||||||
Basic |
$ |
0.39 |
|
$ |
0.46 |
|
||
Diluted |
|
0.39 |
|
|
0.45 |
|
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended |
|||||||||||||||||||
(Amounts in thousands, except per share data) |
As Reported (a) |
|
|
Realignment (1) |
|
|
Other Items |
|
|
As Adjusted |
|||||||||
Sales |
$ |
924,301 |
|
$ |
- |
|
$ |
- |
|
$ |
924,301 |
|
|||||||
Gross profit |
|
285,209 |
|
|
(5,659 |
) |
|
- |
|
|
290,868 |
|
|||||||
Gross margin |
|
30.9 |
% |
|
- |
|
|
- |
|
|
31.5 |
% |
|||||||
Selling, general and administrative expense |
|
(200,729 |
) |
|
(1,773 |
) |
|
(5,856 |
) |
(3) |
|
(193,100 |
) |
||||||
Operating income |
|
87,322 |
|
|
(7,432 |
) |
|
(5,856 |
) |
|
100,610 |
|
|||||||
Operating income as a percentage of sales |
|
9.4 |
% |
|
- |
|
|
- |
|
|
10.9 |
% |
|||||||
Interest and other expense, net |
|
(15,000 |
) |
|
- |
|
|
(2,329 |
) |
(4) |
|
(12,671 |
) |
||||||
Earnings before income taxes |
|
72,322 |
|
|
(7,432 |
) |
|
(8,185 |
) |
|
87,939 |
|
|||||||
Provision for income taxes |
|
(18,672 |
) |
|
(1,552 |
) |
(2) |
|
2,867 |
|
(5) |
|
(19,987 |
) |
|||||
Tax Rate |
|
25.8 |
% |
|
-20.9 |
% |
|
35.0 |
% |
|
22.7 |
% |
|||||||
Net earnings attributable to |
$ |
51,003 |
|
$ |
(8,984 |
) |
$ |
(5,318 |
) |
$ |
65,305 |
|
|||||||
Net earnings per share attributable to |
|||||||||||||||||||
Basic |
$ |
0.39 |
|
$ |
(0.07 |
) |
$ |
(0.04 |
) |
$ |
0.50 |
|
|||||||
Diluted |
|
0.39 |
|
|
(0.07 |
) |
|
(0.04 |
) |
|
0.50 |
|
|||||||
Basic number of shares used for calculation |
|
130,313 |
|
|
130,313 |
|
|
130,313 |
|
|
130,313 |
|
|||||||
Diluted number of shares used for calculation |
|
130,900 |
|
|
130,900 |
|
|
130,900 |
|
|
130,900 |
|
|||||||
(a) Reported in conformity with |
|||||||||||||||||||
Notes: | |||||||||||||||||||
(1) Represents realignment expense incurred as a result of realignment programs. | |||||||||||||||||||
(2) Includes tax impact of items above. | |||||||||||||||||||
(3) Represents Flowserve 2.0 transformation efforts and |
|||||||||||||||||||
(4) Represents below-the-line foreign exchange impacts. | |||||||||||||||||||
(5) Includes tax impact of items above and |
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended |
|||||||||||||||||||
(Amounts in thousands, except per share data) |
As Revised (a) |
|
|
Realignment (1) |
|
|
Other Items |
|
|
As Adjusted |
|||||||||
Sales |
$ |
995,709 |
|
$ |
- |
|
$ |
- |
|
$ |
995,709 |
|
|||||||
Gross profit |
|
332,853 |
|
|
(3,420 |
) |
|
- |
|
|
336,273 |
|
|||||||
Gross margin |
|
33.4 |
% |
|
- |
|
|
- |
|
|
33.8 |
% |
|||||||
Selling, general and administrative expense |
|
(230,362 |
) |
|
(1,374 |
) |
|
(5,058 |
) |
(3) |
|
(223,930 |
) |
||||||
Operating income |
|
104,578 |
|
|
(4,794 |
) |
|
(5,058 |
) |
|
114,430 |
|
|||||||
Operating income as a percentage of sales |
|
10.5 |
% |
|
- |
|
|
- |
|
|
11.5 |
% |
|||||||
Interest and other expense, net |
|
(20,205 |
) |
|
- |
|
|
(7,802 |
) |
(4) |
|
(12,403 |
) |
||||||
Earnings before income taxes |
|
84,373 |
|
|
(4,794 |
) |
|
(12,860 |
) |
|
102,027 |
|
|||||||
Provision for income taxes |
|
(22,410 |
) |
|
978 |
|
(2) |
|
3,140 |
|
(5) |
|
(26,528 |
) |
|||||
Tax Rate |
|
26.6 |
% |
|
20.4 |
% |
|
24.4 |
% |
|
26.0 |
% |
|||||||
Net earnings attributable to |
$ |
59,842 |
|
$ |
(3,816 |
) |
$ |
(9,720 |
) |
$ |
73,378 |
|
|||||||
Net earnings per share attributable to |
|||||||||||||||||||
Basic |
$ |
0.46 |
|
$ |
(0.03 |
) |
$ |
(0.07 |
) |
$ |
0.56 |
|
|||||||
Diluted |
|
0.45 |
|
|
(0.03 |
) |
|
(0.07 |
) |
|
0.56 |
|
|||||||
Basic number of shares used for calculation |
|
131,145 |
|
|
131,145 |
|
|
131,145 |
|
|
131,145 |
|
|||||||
Diluted number of shares used for calculation |
|
131,846 |
|
|
131,846 |
|
|
131,846 |
|
|
131,846 |
|
|||||||
|
|||||||||||||||||||
Notes: | |||||||||||||||||||
(1) Represents realignment expense incurred as a result of realignment programs | |||||||||||||||||||
(2) Includes tax impact of items above | |||||||||||||||||||
(3) Represents Flowserve 2.0 transformation efforts | |||||||||||||||||||
(4) Represents below-the-line foreign exchange impacts | |||||||||||||||||||
(5) Includes tax impact of items above |
PRELIMINARY SEGMENT INFORMATION | ||||||||
(Unaudited) | ||||||||
FLOWSERVE PUMP DIVISION |
Three Months Ended |
|||||||
(Amounts in millions, except percentages) |
2020 |
|
2019 - As Revised |
|||||
Bookings |
$ |
574.1 |
|
$ |
742.1 |
|
||
Sales |
|
670.2 |
|
|
682.7 |
|
||
Gross profit |
|
210.0 |
|
|
230.4 |
|
||
Gross profit margin |
|
31.3 |
% |
|
33.7 |
% |
||
SG&A |
|
126.2 |
|
|
147.1 |
|
||
Segment operating income |
|
86.7 |
|
|
85.5 |
|
||
Segment operating income as a percentage of sales |
|
12.9 |
% |
|
12.5 |
% |
||
FLOW CONTROL DIVISION |
Three Months Ended |
|||||||
(Amounts in millions, except percentages) |
2020 |
|
2019 - As Revised |
|||||
Bookings |
$ |
237.6 |
|
$ |
282.7 |
|
||
Sales |
|
255.2 |
|
|
314.0 |
|
||
Gross profit |
|
78.1 |
|
|
101.8 |
|
||
Gross profit margin |
|
30.6 |
% |
|
32.4 |
% |
||
SG&A |
|
47.3 |
|
|
52.5 |
|
||
Segment operating income |
|
30.8 |
|
|
49.2 |
|
||
Segment operating income as a percentage of sales |
|
12.0 |
% |
|
15.7 |
% |
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(Unaudited) | ||||||||
Nine Months Ended |
||||||||
(Amounts in thousands, except per share data) |
2020 - As Revised |
|
2019 - As Revised |
|||||
Sales |
$ |
2,742,826 |
|
$ |
2,871,517 |
|
||
Cost of sales |
|
(1,921,451 |
) |
|
(1,931,756 |
) |
||
Gross profit |
|
821,375 |
|
|
939,761 |
|
||
Selling, general and administrative expense |
|
(675,523 |
) |
|
(665,625 |
) |
||
Net earnings from affiliates |
|
9,125 |
|
|
8,057 |
|
||
Operating income |
|
154,977 |
|
|
282,193 |
|
||
Interest expense |
|
(40,608 |
) |
|
(42,025 |
) |
||
Interest income |
|
3,571 |
|
|
6,494 |
|
||
Other income (expense), net |
|
7,558 |
|
|
(15,153 |
) |
||
Earnings before income taxes |
|
125,498 |
|
|
231,509 |
|
||
Provision for income taxes |
|
(59,175 |
) |
|
(58,607 |
) |
||
Net earnings, including noncontrolling interests |
|
66,323 |
|
|
172,902 |
|
||
Less: Net earnings attributable to noncontrolling interests |
|
(6,890 |
) |
|
(6,659 |
) |
||
Net earnings attributable to |
$ |
59,433 |
|
$ |
166,243 |
|
||
Net earnings per share attributable to |
||||||||
Basic |
$ |
0.46 |
|
$ |
1.27 |
|
||
Diluted |
|
0.45 |
|
|
1.26 |
|
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Nine Months Ended |
|||||||||||||||||||
(Amounts in thousands, except per share data) |
As Reported (a) |
|
|
Realignment (1) |
|
|
Other Items |
|
|
As Adjusted |
|||||||||
Sales |
$ |
2,742,826 |
|
$ |
- |
|
$ |
- |
|
$ |
2,742,826 |
|
|||||||
Gross profit |
|
821,375 |
|
|
(40,635 |
) |
|
- |
|
|
862,010 |
|
|||||||
Gross margin |
|
29.9 |
% |
|
- |
|
|
- |
|
|
31.4 |
% |
|||||||
Selling, general and administrative expense |
|
(675,523 |
) |
|
(31,681 |
) |
|
(27,557 |
) |
(3) |
|
(616,285 |
) |
||||||
Operating income |
|
154,977 |
|
|
(72,316 |
) |
|
(27,557 |
) |
|
254,850 |
|
|||||||
Operating income as a percentage of sales |
|
5.7 |
% |
|
- |
|
|
- |
|
|
9.3 |
% |
|||||||
Interest and other expense, net |
|
(29,479 |
) |
|
- |
|
|
9,252 |
|
(4) |
|
(38,731 |
) |
||||||
Earnings before income taxes |
|
125,498 |
|
|
(72,316 |
) |
|
(18,305 |
) |
|
216,119 |
|
|||||||
Provision for income taxes |
|
(59,175 |
) |
|
10,146 |
|
(2) |
|
(17,664 |
) |
(5) |
|
(51,657 |
) |
|||||
Tax Rate |
|
47.2 |
% |
|
14.0 |
% |
|
-96.5 |
% |
|
23.9 |
% |
|||||||
Net earnings attributable to |
$ |
59,433 |
|
$ |
(62,170 |
) |
$ |
(35,969 |
) |
$ |
157,572 |
|
|||||||
Net earnings per share attributable to |
|||||||||||||||||||
Basic |
$ |
0.46 |
|
$ |
(0.48 |
) |
$ |
(0.28 |
) |
$ |
1.21 |
|
|||||||
Diluted |
|
0.45 |
|
|
(0.47 |
) |
|
(0.27 |
) |
|
1.20 |
|
|||||||
Basic number of shares used for calculation |
|
130,413 |
|
|
130,413 |
|
|
130,413 |
|
|
130,413 |
|
|||||||
Diluted number of shares used for calculation |
|
131,068 |
|
|
131,068 |
|
|
131,068 |
|
|
131,068 |
|
|||||||
(a) Reported in conformity with |
|||||||||||||||||||
Notes: | |||||||||||||||||||
(1) Represents realignment expense incurred as a result of realignment programs. | |||||||||||||||||||
(2) Includes tax impact of items above. | |||||||||||||||||||
(3) Includes |
|||||||||||||||||||
(4) Represents below-the-line foreign exchange impacts. | |||||||||||||||||||
(5) Includes tax impact of items above, |
RECONCILIATION OF NON-GAAP MEASURES | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Nine Months Ended |
|||||||||||||||||||
(Amounts in thousands, except per share data) |
As Revised |
|
|
Realignment (1) |
|
|
Other Items |
|
|
As Adjusted |
|||||||||
Sales |
$ |
2,871,517 |
|
$ |
- |
|
$ |
- |
|
$ |
2,871,517 |
|
|||||||
Gross profit |
|
939,761 |
|
|
(12,783 |
) |
|
- |
|
|
952,543 |
|
|||||||
Gross margin |
|
32.7 |
% |
|
- |
|
|
- |
|
|
33.2 |
% |
|||||||
Selling, general and administrative expense |
|
(665,625 |
) |
|
13,619 |
|
|
(21,044 |
) |
(3) |
|
(658,200 |
) |
||||||
Operating income |
|
282,193 |
|
|
836 |
|
|
(21,044 |
) |
|
302,400 |
|
|||||||
Operating income as a percentage of sales |
|
9.8 |
% |
|
- |
|
|
- |
|
|
10.5 |
% |
|||||||
Interest and other expense, net |
|
(50,684 |
) |
|
- |
|
|
(13,788 |
) |
(4) |
|
(36,896 |
) |
||||||
Earnings before income taxes |
|
231,509 |
|
|
836 |
|
|
(34,832 |
) |
|
265,504 |
|
|||||||
Provision for income taxes |
|
(58,607 |
) |
|
1,939 |
|
(2) |
|
8,603 |
|
(5) |
|
(69,149 |
) |
|||||
Tax Rate |
|
25.3 |
% |
|
-231.9 |
% |
|
24.7 |
% |
|
26.0 |
% |
|||||||
Net earnings attributable to |
$ |
166,243 |
|
$ |
2,775 |
|
$ |
(26,229 |
) |
$ |
189,696 |
|
|||||||
Net earnings per share attributable to |
|||||||||||||||||||
Basic |
$ |
1.27 |
|
$ |
0.02 |
|
$ |
(0.20 |
) |
$ |
1.45 |
|
|||||||
Diluted |
|
1.26 |
|
|
0.02 |
|
|
(0.20 |
) |
|
1.44 |
|
|||||||
Basic number of shares used for calculation |
|
131,092 |
|
|
131,092 |
|
|
131,092 |
|
|
131,092 |
|
|||||||
Diluted number of shares used for calculation |
|
131,697 |
|
|
131,697 |
|
|
131,697 |
|
|
131,697 |
|
|||||||
Notes: | |||||||||||||||||||
(1) Represents realignment (expense) income incurred as a result of realignment programs. Income in selling, general and administrative due to gains from the sales of non-strategic manufacturing facilities that are included in our Realignment Programs. | |||||||||||||||||||
(2) Includes tax impact of items above | |||||||||||||||||||
(3) Represents Flowserve 2.0 transformation efforts | |||||||||||||||||||
(4) Represents below-the-line foreign exchange impacts | |||||||||||||||||||
(5) Includes tax impact of items above |
PRELIMINARY SEGMENT INFORMATION | ||||||||
(Unaudited) | ||||||||
FLOWSERVE PUMP DIVISION |
Nine Months Ended |
|||||||
(Amounts in millions, except percentages) |
2020 |
|
2019 - As Revised |
|||||
Bookings |
$ |
1,792.3 |
|
$ |
2,253.5 |
|
||
Sales |
|
1,979.9 |
|
|
1,966.8 |
|
||
Gross profit |
|
603.7 |
|
|
653.8 |
|
||
Gross profit margin |
|
30.5 |
% |
|
33.2 |
% |
||
SG&A |
|
426.1 |
|
|
419.7 |
|
||
Segment operating income |
|
186.7 |
|
|
242.1 |
|
||
Segment operating income as a percentage of sales |
|
9.4 |
% |
|
12.3 |
% |
||
FLOW CONTROL DIVISION |
Nine Months Ended |
|||||||
(Amounts in millions, except percentages) |
2020 |
|
2019 - As Revised |
|||||
Bookings |
$ |
807.8 |
|
$ |
942.8 |
|
||
Sales |
|
766.9 |
|
|
908.7 |
|
||
Gross profit |
|
229.1 |
|
|
293.7 |
|
||
Gross profit margin |
|
29.9 |
% |
|
32.3 |
% |
||
SG&A |
|
154.9 |
|
|
159.1 |
|
||
Segment operating income |
|
74.2 |
|
|
134.7 |
|
||
Segment operating income as a percentage of sales |
|
9.7 |
% |
|
14.8 |
% |
PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(Amounts in thousands, except par value) | 2020 |
2019 - As Revised |
||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents |
$ |
921,178 |
|
$ |
670,980 |
|
||
Accounts receivable, net of allowance for expected credit losses of |
|
750,897 |
|
|
795,538 |
|
||
Contract assets, net of allowance for expected credit losses of |
|
310,130 |
|
|
272,914 |
|
||
Inventories, net |
|
714,489 |
|
|
660,837 |
|
||
Prepaid expenses and other |
|
109,451 |
|
|
106,478 |
|
||
Total current assets |
|
2,806,145 |
|
|
2,506,747 |
|
||
Property, plant and equipment, net of accumulated depreciation of |
|
551,011 |
|
|
563,564 |
|
||
Operating lease right-of-use assets, net |
|
166,850 |
|
|
186,218 |
|
||
|
1,204,609 |
|
|
1,193,010 |
|
|||
Deferred taxes |
|
32,206 |
|
|
54,879 |
|
||
Other intangible assets, net |
|
171,246 |
|
|
180,805 |
|
||
Other assets, net of allowance for expected credit losses of |
|
241,509 |
|
|
253,054 |
|
||
Total assets |
$ |
5,173,576 |
|
$ |
4,938,277 |
|
||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable |
$ |
428,870 |
|
$ |
447,582 |
|
||
Accrued liabilities |
|
423,117 |
|
|
401,385 |
|
||
Contract liabilities |
|
198,380 |
|
|
221,095 |
|
||
Debt due within one year |
|
8,581 |
|
|
11,272 |
|
||
Operating lease liabilities |
|
34,634 |
|
|
36,108 |
|
||
Total current liabilities |
|
1,093,582 |
|
|
1,117,442 |
|
||
Long-term debt due after one year |
|
1,701,082 |
|
|
1,365,977 |
|
||
Operating lease liabilities |
|
133,348 |
|
|
151,523 |
|
||
Retirement obligations and other liabilities |
|
541,721 |
|
|
530,994 |
|
||
Shareholders’ equity: | ||||||||
Common shares, |
|
220,991 |
|
|
220,991 |
|
||
Shares authorized – 305,000 | ||||||||
Shares issued – 176,793 | ||||||||
Capital in excess of par value |
|
499,561 |
|
|
501,045 |
|
||
Retained earnings |
|
3,625,291 |
|
|
3,652,244 |
|
||
|
(2,059,666 |
) |
|
(2,051,583 |
) |
|||
Deferred compensation obligation |
|
6,100 |
|
|
8,334 |
|
||
Accumulated other comprehensive loss |
|
(618,856 |
) |
|
(584,292 |
) |
||
|
1,673,421 |
|
|
1,746,739 |
|
|||
Noncontrolling interests |
|
30,422 |
|
|
25,602 |
|
||
Total equity |
|
1,703,843 |
|
|
1,772,341 |
|
||
Total liabilities and equity |
$ |
5,173,576 |
|
$ |
4,938,277 |
|
Third Quarter and Year-to-Date 2020 - Segment Results | ||||||||||||
(dollars in millions, comparison vs. 2019 third quarter and year-to-date, unaudited) | ||||||||||||
FPD |
|
FCD |
||||||||||
3rd Qtr |
|
YTD |
|
3rd Qtr |
|
YTD |
||||||
Bookings |
$ |
574.1 |
$ |
1,792.3 |
$ |
237.6 |
$ |
807.8 |
||||
- vs. prior year |
|
-22.6% |
|
-20.5% |
|
-16.0% |
|
-14.3% |
||||
- on constant currency |
|
-22.8% |
|
-19.2% |
|
-16.8% |
|
-13.4% |
||||
Sales |
$ |
670.2 |
$ |
1,979.9 |
$ |
255.2 |
$ |
766.9 |
||||
- vs. prior year |
|
-1.8% |
|
0.7% |
|
-18.7% |
|
-15.6% |
||||
- on constant currency |
|
-2.1% |
|
2.2% |
|
-19.8% |
|
-15.1% |
||||
Gross Profit |
$ |
210.0 |
$ |
603.7 |
$ |
78.1 |
$ |
229.1 |
||||
- vs. prior year |
|
-8.9% |
|
-7.7% |
|
-23.3% |
|
-22.0% |
||||
Gross Margin (% of sales) |
|
31.3% |
|
30.5% |
|
30.6% |
|
29.9% |
||||
- vs. prior year (in basis points) | (240) bps | (270) bps | (180) bps | (240) bps | ||||||||
Operating Income |
$ |
86.7 |
$ |
186.7 |
$ |
30.8 |
$ |
74.2 |
||||
- vs. prior year |
|
1.4% |
|
-22.9% |
|
-37.4% |
|
-44.9% |
||||
- on constant currency |
|
4.6% |
|
-19.5% |
|
-38.0% |
|
-44.9% |
||||
Operating Margin (% of sales) |
|
12.9% |
|
9.4% |
|
12.1% |
|
9.7% |
||||
- vs. prior year (in basis points) | 40 bps | (290) bps | (360) bps | (510) bps | ||||||||
Adjusted Operating Income * |
$ |
94.5 |
$ |
238.5 |
$ |
31.2 |
$ |
89.7 |
||||
- vs. prior year |
|
6.8% |
|
0.5% |
|
-37.6% |
|
-34.3% |
||||
- on constant currency |
|
9.9% |
|
4.0% |
|
-38.1% |
|
-34.2% |
||||
Adj. Oper. Margin (% of sales)* |
|
14.1% |
|
12.0% |
|
12.2% |
|
11.7% |
||||
- vs. prior year (in basis points) | 110 bps | (10) bps | (370) bps | (330) bps | ||||||||
Backlog |
$ |
1,338.9 |
$ |
647.9 |
||||||||
* Adjusted Operating Income and Adjusted Operating Margin exclude realignment charges and other specific discrete items |
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