Flowserve Corporation Reports Second Quarter 2024 Results; Raises Full-Year Adjusted EPS
Flowserve (NYSE: FLS) announced its Q2 2024 financial results, significantly surpassing previous performance metrics. The company reported a 41% increase in reported EPS to $0.55 and a 40% rise in adjusted EPS to $0.73. Total bookings hit $1.25 billion, marking a 12.2% growth and the highest quarterly level since 2014, with aftermarket bookings at a record $610 million.
Sales grew by 7.1% to $1.16 billion, with original equipment sales up by 9.4% and aftermarket sales increasing by 5.0%. Adjusted gross and operating margins improved by 200 and 210 basis points to 32.3% and 12.5%, respectively. The backlog reached $2.7 billion, up 2.8% sequentially.
Flowserve raised its full-year 2024 adjusted EPS guidance to $2.60-$2.75, reflecting confidence in its operational performance and market outlook.
CEO Scott Rowe highlighted operational excellence and product management as key drivers of growth, positioning the company well for future success.
Flowserve (NYSE: FLS) ha annunciato i risultati finanziari del Q2 2024, superando significativamente le metriche di performance precedenti. L'azienda ha riportato un aumento del 41% dell'EPS riportato a $0.55 e un aumento del 40% dell'EPS rettificato a $0.73. Le prenotazioni totali hanno raggiunto $1.25 miliardi, segnando una crescita del 12.2% e il livello trimestrale più alto dal 2014, con prenotazioni post-vendita a un record di $610 milioni.
Le vendite sono aumentate del 7.1% a $1.16 miliardi, con le vendite di attrezzature originali in crescita del 9.4% e le vendite post-vendita aumentate del 5.0%. I margini lordi e operativi rettificati sono migliorati di 200 e 210 punti base, raggiungendo rispettivamente il 32.3% e il 12.5%. Il portafoglio ordini ha raggiunto $2.7 miliardi, con un incremento del 2.8% rispetto al trimestre precedente.
Flowserve ha alzato la guida per l'EPS rettificato dell'intero anno 2024 a $2.60-$2.75, riflettendo fiducia nella sua performance operativa e nelle prospettive di mercato.
Il CEO Scott Rowe ha sottolineato l'eccellenza operativa e la gestione del prodotto come motori chiave di crescita, posizionando l'azienda bene per il successo futuro.
Flowserve (NYSE: FLS) anunció sus resultados financieros del segundo trimestre de 2024, superando significativamente las métricas de rendimiento anteriores. La compañía reportó un aumento del 41% en el EPS reportado a $0.55 y un aumento del 40% en el EPS ajustado a $0.73. Las reservas totales alcanzaron $1.25 mil millones, marcando un crecimiento del 12.2% y el nivel trimestral más alto desde 2014, con reservas de posventa en un récord de $610 millones.
Las ventas crecieron un 7.1% hasta $1.16 mil millones, con las ventas de equipos originales aumentando un 9.4% y las ventas de posventa incrementándose en un 5.0%. Los márgenes brutos y operativos ajustados mejoraron en 200 y 210 puntos básicos, alcanzando el 32.3% y el 12.5%, respectivamente. El saldo de pedidos alcanzó los $2.7 mil millones, un aumento del 2.8% secuencialmente.
Flowserve incrementó su guía de EPS ajustado para todo el año 2024 a $2.60-$2.75, reflejando confianza en su rendimiento operativo y en las perspectivas del mercado.
El CEO Scott Rowe destacó la excelencia operacional y la gestión de productos como impulsores clave del crecimiento, posicionando bien a la empresa para el éxito futuro.
Flowserve(NYSE: FLS)는 2024년 2분기 재무 결과를 발표했으며, 이전 성과 지표를 크게 초과했습니다. 회사는 보고된 EPS가 41% 증가하여 $0.55에 도달했으며, 조정 EPS가 40% 상승하여 $0.73에 도달했다고 보고했습니다. 총 예약 건수는 12.2% 성장하여 $12.5억에 달했으며, 이는 2014년 이후 최고 분기 수준으로, 애프터마켓 예약 건수는 기록적인 $6.1억에 달했습니다.
판매는 7.1% 증가하여 $11.6억에 달했으며, 원래 장비 판매는 9.4% 증가하고 애프터마켓 판매는 5.0% 증가했습니다. 조정된 총 이익률 및 운영 이익률은 각각 32.3%와 12.5%로 200 및 210 기본 포인트 개선되었습니다. 미수금은 28억 달러에 도달하여 전 분기 대비 2.8% 증가했습니다.
Flowserve는 2024년 전체 연도 조정 EPS 가이던스를 $2.60-$2.75로 상향 조정했으며, 이는 운영 성과와 시장 전망에 대한 자신감을 반영합니다.
CEO 스콧 로우는 운영 우수성과 제품 관리가 성장의 핵심 동력으로 강조하며, 회사를 미래의 성공을 위해 잘 위치시켰습니다.
Flowserve (NYSE: FLS) a annoncé ses résultats financiers du deuxième trimestre 2024, dépassant significativement les indicateurs de performance précédents. La société a rapporté une augmentation de 41% de l'EPS déclaré à 0,55 $ et une augmentation de 40% de l'EPS ajusté à 0,73 $. Les commandes totales ont atteint 1,25 milliard de dollars, marquant une croissance de 12,2 % et le plus haut niveau trimestriel depuis 2014, avec des commandes après-vente atteignant un record de 610 millions de dollars.
Les ventes ont augmenté de 7,1 % pour atteindre 1,16 milliard de dollars, avec les ventes d'équipements d'origine en hausse de 9,4 % et les ventes après-vente augmentant de 5,0 %. Les marges brutes et opérationnelles ajustées se sont améliorées de 200 et 210 points de base, atteignant respectivement 32,3 % et 12,5 %. Le portefeuille de commandes a atteint 2,7 milliards de dollars, en hausse de 2,8 % par rapport au trimestre précédent.
Flowserve a relevé ses prévisions d'EPS ajusté pour l'année 2024 à 2,60 $ - 2,75 $, reflétant la confiance dans ses performances opérationnelles et ses perspectives de marché.
Le PDG Scott Rowe a souligné l'excellence opérationnelle et la gestion des produits comme des moteurs clés de la croissance, positionnant ainsi l'entreprise pour un succès futur.
Flowserve (NYSE: FLS) hat seine Finanzzahlen für das 2. Quartal 2024 bekannt gegeben, die die bisherigen Leistungsmetriken deutlich übertreffen. Das Unternehmen berichtete von einem 41% Anstieg des ausgewiesenen EPS auf $0,55 und einem 40% Anstieg des bereinigten EPS auf $0,73. Die Gesamtabbuchungen erreichten $1,25 Milliarden, was einem Wachstum von 12,2% entspricht und den höchsten Quartalswert seit 2014 darstellt, wobei die Nachmarktbuchungen bei einem Rekordwert von $610 Millionen lagen.
Der Umsatz wuchs um 7,1% auf $1,16 Milliarden, wobei die Verkäufe von Originalgeräten um 9,4% und die Nachverkaufsverkäufe um 5,0% zunahmen. Die bereinigten Brutto- und Betriebsmargen verbesserten sich um 200 und 210 Basispunkte auf 32,3% bzw. 12,5%. Der Auftragsbestand erreichte $2,7 Milliarden, was einem Anstieg von 2,8% gegenüber dem Vorquartal entspricht.
Flowserve hob die Ausblick für das bereinigte EPS für das gesamte Jahr 2024 auf $2,60-$2,75 an, was das Vertrauen in die operative Leistung und die Marktentwicklung widerspiegelt.
CEO Scott Rowe betonte die operative Exzellenz und das Produktmanagement als entscheidende Treiber des Wachstums und positioniert das Unternehmen gut für zukünftigen Erfolg.
- Reported EPS increased by 41% to $0.55.
- Adjusted EPS rose by 40% to $0.73.
- Total bookings grew by 12.2% to $1.25 billion.
- Sales increased by 7.1% to $1.16 billion.
- Original equipment sales up by 9.4%.
- Aftermarket sales increased by 5.0%.
- Adjusted gross margin improved by 200 basis points to 32.3%.
- Adjusted operating margin increased by 210 basis points to 12.5%.
- Backlog of $2.7 billion, up 2.8% sequentially.
- Raised full-year 2024 adjusted EPS guidance to $2.60-$2.75.
- Reported EPS includes $23.7 million in after-tax adjusted expenses.
Flowserve delivered a strong second quarter performance, demonstrating significant improvements across key financial metrics. The company reported adjusted EPS of
Revenue grew
Margins saw substantial improvement, with adjusted gross margin expanding 200 basis points to
Based on the strong first-half performance and positive outlook, Flowserve raised its full-year 2024 adjusted EPS guidance to
Overall, Flowserve's Q2 results demonstrate the company's ability to capitalize on favorable market conditions while driving internal improvements. The combination of strong bookings, margin expansion and raised guidance paints a positive picture for the company's near-term prospects.
Flowserve's Q2 results provide valuable insights into broader industry trends and market dynamics. The company's record
The
The aftermarket segment's growth, both in bookings (
Geographically, while specific regional breakdowns weren't provided, the overall growth suggests a global recovery in industrial activity. The company's ability to navigate supply chain challenges and inflationary pressures, as evidenced by its margin expansion, indicates effective management of macro headwinds affecting the industry.
Looking ahead, the raised guidance and strong backlog (
-
Second quarter Reported and Adjusted1 Earnings Per Share (EPS)2 of
55 cents and73 cents , an increase of41% and40% , respectively, driven by strong operational execution
-
Bookings of
were the highest quarterly level since 2014 and includes record aftermarket activity of more than$1.25 billion $610 million
-
Adjusted Gross and Operating Margins3 of
32.3% and12.5% , respectively, increased 200 and 210 basis points compared to prior year
-
Raised full-year 2024 Adjusted EPS guidance4 to
to$2.60 $2.75
Second Quarter 2024 Highlights (all comparisons to the 2023 second quarter, unless otherwise noted)
-
Reported EPS of
and Adjusted EPS of$0.55 , compared to$0.73 and$0.39 , respectively$0.52 -
Second quarter 2024 Reported EPS includes after-tax adjusted expenses of
, comprised of realignment charges and write-down of investment among other items$23.7 million
-
Second quarter 2024 Reported EPS includes after-tax adjusted expenses of
-
Total bookings were
, up$1.25 billion or$135.1 million 12.2% . On a constant currency basis5, total bookings were up or$144.2 million 13.0% -
Original equipment bookings were
, up$632.1 million or$112.0 million 21.5% . On a constant currency basis, original equipment bookings were up or$115.2 million 22.2% -
Aftermarket bookings were
, up$614.0 million or$23.1 million 3.9% . On a constant currency basis, aftermarket bookings were up or$29.0 million 4.9%
-
Original equipment bookings were
-
Sales were
, up$1.16 billion or$76.5 million 7.1% . On a constant currency basis, sales were up or$83.7 million 7.7% -
Original equipment sales were
, up$566.4 million or$48.5 million 9.4% . On a constant currency basis, original equipment sales were up or$51.0 million 9.8% -
Aftermarket sales were
, up$590.5 million or$28.0 million 5.0% . On a constant currency basis, aftermarket sales were up or$32.7 million 5.8%
-
Original equipment sales were
-
Reported gross and operating margins were
31.6% and10.5% , respectively, up 170 basis points and 160 basis points, respectively-
Adjusted gross and operating margins were
32.3% and12.5% , respectively, up 200 basis points and 210 basis points, respectively
-
Adjusted gross and operating margins were
-
Backlog of
was up$2.7 billion 2.8% sequentially with a second quarter book-to-bill of 1.08x
“Our second quarter results further solidify the momentum we have generated over the last several quarters. We delivered meaningful sequential and year-over-year improvements in bookings, revenue and margins driven by our operational excellence program and the effectiveness of organizational design changes implemented last year. We achieved significant bookings of
Rowe concluded, “With our strong financial and operating performance year-to-date, combined with our outlook for the rest of the year and confidence in our execution, we have increased our full-year Adjusted EPS guidance for 2024. Our 3D strategy continues to accelerate our growth, and we remain committed to further capitalizing on opportunities that will deliver long-term value creation for our customers, associates, and shareholders.”
Revised 2024 Guidance4
Flowserve is raising its Adjusted EPS guidance metrics for 2024 and reaffirmed most other financial targets, as shown in the table below:
|
Prior Target Range6 |
Revised Target Range |
|
Revenue Growth |
Up |
Reaffirmed |
|
Reported Earnings Per Share |
|
Reaffirmed |
|
Adjusted Earnings Per Share |
|
|
|
Net Interest Expense |
|
Reaffirmed |
|
Adjusted Tax Rate |
~ |
~ |
|
Capital Expenditures |
|
Reaffirmed |
|
Flowserve’s 2024 Adjusted EPS target range excludes expected adjusted items including realignment charges of approximately
Second Quarter 2024 Results Conference Call
Flowserve will host its conference call with the financial community on Tuesday, July 30th at 10:00 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 “Investors” 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 EPS excludes identified realignment expenses, the impact from other specific discrete items and below-the-line foreign currency effects and utilizes the then-applicable foreign exchange rates and approximately 132 million fully diluted shares. |
|
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 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. |
|
4 |
2024 Adjusted EPS excludes realignment expenses as well as the impact of below-the-line foreign currency effects and certain other discrete items which may arise during the year and utilizes June 2024 foreign exchange rates and approximately 132 million fully diluted shares. |
|
5 |
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. |
|
6 |
Prior target range was provided as of April 29, 2024. |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
||||||||
(Unaudited) |
|
|||||||
Three Months Ended June 30, |
||||||||
(Amounts in thousands, except per share data) |
|
2024 |
|
|
2023 |
|
||
|
||||||||
Sales |
$ |
1,156,892 |
|
$ |
1,080,376 |
|
||
Cost of sales |
|
(790,796 |
) |
|
(757,616 |
) |
||
Gross profit |
|
366,096 |
|
|
322,760 |
|
||
Selling, general and administrative expense |
|
(238,627 |
) |
|
(230,082 |
) |
||
Loss on sale of business |
|
(12,981 |
) |
|
- |
|
||
Net earnings from affiliates |
|
6,816 |
|
|
3,970 |
|
||
Operating income |
|
121,304 |
|
|
96,648 |
|
||
Interest expense |
|
(16,917 |
) |
|
(16,554 |
) |
||
Interest income |
|
1,174 |
|
|
1,907 |
|
||
Other income (expense), net |
|
(5,263 |
) |
|
(5,543 |
) |
||
Earnings (loss) before income taxes |
|
100,298 |
|
|
76,458 |
|
||
Provision for income taxes |
|
(23,846 |
) |
|
(21,304 |
) |
||
Net earnings (loss), including noncontrolling interests |
|
76,452 |
|
|
55,154 |
|
||
Less: Net earnings attributable to noncontrolling interests |
|
(3,836 |
) |
|
(3,951 |
) |
||
Net earnings (loss) attributable to Flowserve Corporation |
$ |
72,616 |
|
$ |
51,203 |
|
||
|
|
|||||||
Net earnings (loss) per share attributable to Flowserve Corporation common shareholders: |
|
|
||||||
Basic |
$ |
0.55 |
|
$ |
0.39 |
|
||
Diluted |
|
0.55 |
|
|
0.39 |
|
||
|
|
|||||||
Weighted average shares – basic |
|
131,656 |
|
|
131,171 |
|
||
Weighted average shares – diluted |
|
132,415 |
|
|
131,810 |
|
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 June 30, 2024 |
Gross Profit |
Selling, General & Administrative Expense |
Loss on Sale of Business |
Operating Income |
Other Income (Expense), Net |
Provision For (Benefit From) Income Taxes |
Net Earnings (Loss) |
Effective Tax Rate |
Diluted EPS |
|||||||||||||||
Reported |
$ |
366,096 |
|
$ |
238,627 |
|
$ |
12,981 |
|
$ |
121,304 |
|
$ |
(5,263 |
) |
$ |
23,846 |
|
$ |
72,616 |
|
23.8 |
% |
0.55 |
Reported as a percent of sales |
|
31.6 |
% |
|
20.6 |
% |
|
1.1 |
% |
|
10.5 |
% |
|
-0.5 |
% |
|
2.1 |
% |
|
6.3 |
% |
|||
Realignment charges (a) |
|
7,521 |
|
|
267 |
|
|
(12,981 |
) |
|
20,235 |
|
|
- |
|
|
1,558 |
|
|
18,677 |
|
7.7 |
% |
0.14 |
Discrete items (b) |
|
- |
|
|
(1,100 |
) |
|
- |
|
|
1,100 |
|
|
- |
|
|
259 |
|
|
841 |
|
23.5 |
% |
0.01 |
Discrete asset write-downs (c)(d) |
|
- |
|
|
(1,795 |
) |
|
- |
|
|
1,795 |
|
|
3,567 |
|
|
1,342 |
|
|
4,020 |
|
25.0 |
% |
0.03 |
Below-the-line foreign exchange impacts (e) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
207 |
|
|
29 |
|
|
178 |
|
13.9 |
% |
0.00 |
Adjusted |
$ |
373,617 |
|
$ |
235,999 |
|
$ |
- |
|
$ |
144,434 |
|
$ |
(1,489 |
) |
$ |
27,034 |
|
$ |
96,332 |
|
21.3 |
% |
0.73 |
Adjusted as a percent of sales |
|
32.3 |
% |
|
20.4 |
% |
|
0.0 |
% |
|
12.5 |
% |
|
-0.1 |
% |
|
2.3 |
% |
|
8.3 |
% |
|||
Note: Amounts may not calculate due to rounding |
||||||||||||||||||||||||
(a) Charges represent realignment costs incurred as a result of realignment programs of which |
||||||||||||||||||||||||
(b) Charge represents costs associated with merger and acquisition activity. |
||||||||||||||||||||||||
(c) Charge represents a |
||||||||||||||||||||||||
(d) Charge represents a |
||||||||||||||||||||||||
(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 June 30, 2023 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
Other Income (Expense), Net |
Provision For (Benefit From) Income Taxes |
Net Earnings (Loss) |
Effective Tax Rate |
Diluted EPS |
||||||||||||||||
Reported |
$ |
322,760 |
|
$ |
230,082 |
|
$ |
96,648 |
|
$ |
(5,543 |
) |
$ |
21,304 |
|
$ |
51,203 |
|
|
27.9 |
% |
0.39 |
|
|
Reported as a percent of sales |
|
29.9 |
% |
|
21.3 |
% |
|
8.9 |
% |
|
-0.5 |
% |
|
2.0 |
% |
|
4.7 |
% |
||||||
Realignment charges (a) |
|
4,106 |
|
|
(7,445 |
) |
|
11,551 |
|
|
- |
|
|
2,982 |
|
|
8,569 |
|
|
25.8 |
% |
0.07 |
|
|
Acquisition related (b) |
|
- |
|
|
(2,856 |
) |
|
2,856 |
|
|
- |
|
|
732 |
|
|
2,124 |
|
|
25.6 |
% |
0.02 |
|
|
Discrete asset write-downs (c) |
|
796 |
|
|
(1,038 |
) |
|
1,834 |
|
|
- |
|
|
479 |
|
|
1,355 |
|
|
26.1 |
% |
0.01 |
|
|
Below-the-line foreign exchange impacts (d) |
|
- |
|
|
- |
|
|
- |
|
|
4,758 |
|
|
(156 |
) |
|
4,914 |
|
|
-3.3 |
% |
0.04 |
|
|
Adjusted |
$ |
327,662 |
|
$ |
218,743 |
|
$ |
112,889 |
|
$ |
(785 |
) |
$ |
25,341 |
|
$ |
68,165 |
|
|
26.0 |
% |
0.52 |
|
|
Adjusted as a percent of sales |
|
30.3 |
% |
|
20.2 |
% |
|
10.4 |
% |
|
-0.1 |
% |
|
2.3 |
% |
|
6.3 |
% |
||||||
Note: Amounts may not calculate due to rounding |
||||||||||||||||||||||||
(a) Charges represent realignment costs incurred as a result of realignment programs of which |
||||||||||||||||||||||||
(b) Charges represent costs associated with a terminated acquisition. |
||||||||||||||||||||||||
(c) Charge represents a further expense of |
||||||||||||||||||||||||
(d) 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 PUMPS DIVISION |
Three Months Ended June 30, |
|||||||
(Amounts in millions, except percentages) |
|
2024 |
|
|
2023 |
|
||
Bookings |
$ |
898.8 |
|
$ |
760.0 |
|
||
Sales |
|
812.2 |
|
|
765.4 |
|
||
Gross profit |
|
260.2 |
|
|
226.8 |
|
||
Gross profit margin |
|
32.0 |
% |
|
29.6 |
% |
||
SG&A |
|
136.1 |
|
|
132.8 |
|
||
Segment operating income |
|
131.0 |
|
|
98.0 |
|
||
Segment operating income as a percentage of sales |
|
16.1 |
% |
|
12.8 |
% |
||
|
||||||||
FLOW CONTROL DIVISION |
Three Months Ended June 30, |
|||||||
(Amounts in millions, except percentages) |
|
2024 |
|
|
2023 |
|
||
Bookings |
$ |
349.2 |
|
$ |
359.7 |
|
||
Sales |
|
347.7 |
|
|
317.7 |
|
||
Gross profit |
|
106.3 |
|
|
93.1 |
|
||
Gross profit margin |
|
30.6 |
% |
|
29.3 |
% |
||
SG&A |
|
61.0 |
|
|
56.9 |
|
||
Loss on sale of business |
|
(13.0 |
) |
|
- |
|
||
Segment operating income |
|
32.3 |
|
|
36.1 |
|
||
Segment operating income as a percentage of sales |
|
9.3 |
% |
|
11.4 |
% |
Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) |
||||||||||||||||||||||||||||||||
(Amounts in thousands) |
||||||||||||||||||||||||||||||||
Flowserve Pumps Division |
||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2024 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
Three Months Ended June 30, 2023 |
Gross
|
Selling, General & Administrative Expense |
Operating Income |
|||||||||||||||||||||||||
Reported |
$ |
260,215 |
|
$ |
136,053 |
|
$ |
130,978 |
|
Reported |
$ |
226,814 |
|
$ |
132,780 |
|
$ |
98,003 |
|
|||||||||||||
Reported as a percent of sales |
|
32.0 |
% |
|
16.8 |
% |
|
16.1 |
% |
Reported as a percent of sales |
|
29.6 |
% |
|
17.3 |
% |
|
12.8 |
% |
|||||||||||||
Realignment charges (a) |
|
7,378 |
|
|
720 |
|
|
6,658 |
|
Realignment charges (a) |
|
953 |
|
|
(17 |
) |
|
970 |
|
|||||||||||||
Adjusted |
$ |
267,593 |
|
$ |
136,773 |
|
$ |
137,636 |
|
Discrete asset write-downs (b) |
|
796 |
|
|
(1,038 |
) |
|
1,834 |
|
|||||||||||||
Adjusted as a percent of sales |
|
32.9 |
% |
|
16.8 |
% |
|
16.9 |
% |
Adjusted |
$ |
228,563 |
|
$ |
131,725 |
|
$ |
100,807 |
|
|||||||||||||
Adjusted as a percent of sales |
|
29.9 |
% |
|
17.2 |
% |
|
13.2 |
% |
|||||||||||||||||||||||
Flow Control Division |
||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2024 |
Gross Profit |
Selling, General & Administrative Expense |
Loss on Sale of Business |
Operating Income |
Three Months Ended June 30, 2023 |
Gross
|
Selling, General & Administrative Expense |
Operating Income |
||||||||||||||||||||||||
Reported |
$ |
106,271 |
|
$ |
61,034 |
|
$ |
12,981 |
|
$ |
32,251 |
|
Reported |
$ |
93,058 |
|
$ |
56,943 |
|
$ |
36,115 |
|
||||||||||
Reported as a percent of sales |
|
30.6 |
% |
|
17.6 |
% |
|
3.7 |
% |
|
9.3 |
% |
Reported as a percent of sales |
|
29.3 |
% |
|
17.9 |
% |
|
11.4 |
% |
||||||||||
Realignment charges (a) |
|
221 |
|
|
53 |
|
|
(12,981 |
) |
|
13,149 |
|
Realignment charges (a) |
|
3,153 |
|
|
- |
|
|
3,153 |
|
||||||||||
Discrete items (b) |
|
- |
|
|
(1,100 |
) |
|
- |
|
|
1,100 |
|
Acquisition related (c) |
|
- |
|
|
(2,856 |
) |
|
2,856 |
|
||||||||||
Adjusted |
$ |
106,492 |
|
$ |
59,987 |
|
$ |
- |
|
$ |
46,500 |
|
Adjusted |
$ |
96,211 |
|
$ |
54,087 |
|
$ |
42,124 |
|
||||||||||
Adjusted as a percent of sales |
|
30.6 |
% |
|
17.3 |
% |
|
0.0 |
% |
|
13.4 |
% |
Adjusted as a percent of sales |
|
30.3 |
% |
|
17.0 |
% |
|
13.3 |
% |
||||||||||
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 |
(a) Charges represent realignment costs incurred as a result of realignment programs of which |
|||||||||||||||||||||||||||||||
(b) Charge represents costs associated with merger and acquisition activity. |
(b) Charge represents a further expense of |
|||||||||||||||||||||||||||||||
(c) Charge represents costs associated with a terminated acquisition. |
||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
|
|||||||||||||||||||||||||||||||
(Unaudited) |
|
|
||||||||||||||||||||||||||||||
Six Months Ended June 30, |
|
|||||||||||||||||||||||||||||||
(Amounts in thousands, except per share data) |
2024 |
|
2023 |
|
|
|||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Sales |
$ |
2,244,371 |
|
$ |
2,060,681 |
|
|
|||||||||||||||||||||||||
Cost of sales |
|
(1,539,307 |
) |
|
(1,441,090 |
) |
|
|||||||||||||||||||||||||
Gross profit |
|
705,064 |
|
|
619,591 |
|
|
|||||||||||||||||||||||||
Selling, general and administrative expense |
|
(467,045 |
) |
|
(474,359 |
) |
|
|||||||||||||||||||||||||
Loss on sale of businesses |
|
(12,981 |
) |
|
- |
|
|
|||||||||||||||||||||||||
Net earnings from affiliates |
|
9,344 |
|
|
8,603 |
|
|
|||||||||||||||||||||||||
Operating income |
|
234,382 |
|
|
153,835 |
|
|
|||||||||||||||||||||||||
Interest expense |
|
(32,233 |
) |
|
(32,766 |
) |
|
|||||||||||||||||||||||||
Interest income |
|
2,343 |
|
|
3,401 |
|
|
|||||||||||||||||||||||||
Other income (expense), net |
|
(6,137 |
) |
|
(13,562 |
) |
|
|||||||||||||||||||||||||
Earnings (loss) before income taxes |
|
198,355 |
|
|
110,908 |
|
|
|||||||||||||||||||||||||
Benefit from (provision for) income taxes |
|
(43,988 |
) |
|
(25,757 |
) |
|
|||||||||||||||||||||||||
Net earnings (loss), including noncontrolling interests |
|
154,367 |
|
|
85,151 |
|
|
|||||||||||||||||||||||||
Less: Net earnings attributable to noncontrolling interests |
|
(7,531 |
) |
|
(7,181 |
) |
|
|||||||||||||||||||||||||
Net earnings (loss) attributable to Flowserve Corporation |
$ |
146,836 |
|
$ |
77,970 |
|
|
|||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
Net earnings (loss) per share attributable to Flowserve Corporation common shareholders: |
|
|
|
|||||||||||||||||||||||||||||
Basic |
$ |
1.12 |
|
$ |
0.59 |
|
|
|||||||||||||||||||||||||
Diluted |
|
1.11 |
|
|
0.59 |
|
|
|||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
Weighted average shares – basic |
|
131,583 |
|
|
131,051 |
|
|
|||||||||||||||||||||||||
Weighted average shares – diluted |
|
132,392 |
|
|
131,782 |
|
|
|||||||||||||||||||||||||
Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) |
|||||||||||||||||||||||||
(Amounts in thousands, except per share data) |
|||||||||||||||||||||||||
Six Months Ended June 30, 2024 |
Gross Profit |
Selling, General & Administrative Expense |
Loss on Sale of Business |
Operating Income |
Other Income (Expense), Net |
Provision For (Benefit From) Income Taxes |
Net Earnings (Loss) |
Effective Tax Rate |
Diluted EPS |
||||||||||||||||
Reported |
$ |
705,064 |
|
$ |
467,045 |
|
$ |
12,981 |
|
$ |
234,382 |
|
$ |
(6,137 |
) |
$ |
43,988 |
|
$ |
146,836 |
|
22.2 |
% |
1.11 |
|
Reported as a percent of sales |
|
31.4 |
% |
|
20.8 |
% |
|
0.6 |
% |
|
10.4 |
% |
|
-0.3 |
% |
|
2.0 |
% |
|
6.5 |
% |
||||
Realignment charges (a) |
|
13,194 |
|
|
(1,227 |
) |
|
(12,981 |
) |
|
27,402 |
|
|
- |
|
|
2,281 |
|
|
25,121 |
|
8.3 |
% |
0.19 |
|
Discrete items (b)(c) |
|
- |
|
|
900 |
|
|
- |
|
|
(900 |
) |
|
- |
|
|
259 |
|
|
(1,159 |
) |
-28.8 |
% |
(0.01 |
) |
Discrete asset write-downs (d)(e) |
|
- |
|
|
(1,795 |
) |
|
- |
|
|
1,795 |
|
|
3,567 |
|
|
1,342 |
|
|
4,020 |
|
25.0 |
% |
0.03 |
|
Below-the-line foreign exchange impacts (f) |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(1,116 |
) |
|
(22 |
) |
|
(1,094 |
) |
2.0 |
% |
(0.01 |
) |
Adjusted |
$ |
718,258 |
|
$ |
464,923 |
|
$ |
- |
|
$ |
262,679 |
|
$ |
(3,686 |
) |
$ |
47,848 |
|
$ |
173,724 |
|
20.9 |
% |
1.31 |
|
Adjusted as a percent of sales |
|
32.0 |
% |
|
20.7 |
% |
|
0.0 |
% |
|
11.7 |
% |
|
-0.2 |
% |
|
2.1 |
% |
|
7.7 |
% |
||||
Note: Amounts may not calculate due to rounding |
|||||||||||||||||||||||||
(a) Charges represent realignment costs incurred as a result of realignment programs of which |
|||||||||||||||||||||||||
(b) Represents a reduction to reserves of |
|||||||||||||||||||||||||
(c) Charge represents |
|||||||||||||||||||||||||
(d) Charge represents a |
|||||||||||||||||||||||||
(e) Charge represents a |
|||||||||||||||||||||||||
(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. |
|||||||||||||||||||||||||
Six Months Ended June 30, 2023 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
Other Income (Expense), Net |
Provision For (Benefit From) Income Taxes |
Net Earnings (Loss) |
Effective Tax Rate |
Diluted EPS |
|||||||||||||||||
Reported |
$ |
619,591 |
|
$ |
474,359 |
|
$ |
153,835 |
|
$ |
(13,562 |
) |
$ |
25,757 |
|
$ |
77,970 |
|
|
23.2 |
% |
0.59 |
|
||
Reported as a percent of sales |
|
30.1 |
% |
|
23.0 |
% |
|
7.5 |
% |
|
-0.7 |
% |
|
1.2 |
% |
|
3.8 |
% |
|||||||
Realignment charges (a) |
|
4,308 |
|
|
(24,122 |
) |
|
28,430 |
|
|
- |
|
|
6,166 |
|
|
22,264 |
|
|
21.7 |
% |
0.17 |
|
||
Acquisition related (b) |
|
- |
|
|
(5,952 |
) |
|
5,952 |
|
|
- |
|
|
1,554 |
|
|
4,398 |
|
|
26.1 |
% |
0.03 |
|
||
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) |
|
- |
|
|
- |
|
|
- |
|
|
12,164 |
|
|
393 |
|
|
11,771 |
|
|
3.2 |
% |
0.09 |
|
||
Adjusted |
$ |
625,868 |
|
$ |
440,330 |
|
$ |
194,141 |
|
$ |
(1,398 |
) |
$ |
35,387 |
|
$ |
120,810 |
|
|
21.7 |
% |
0.92 |
|
||
Adjusted as a percent of sales |
|
30.4 |
% |
|
21.4 |
% |
|
9.4 |
% |
|
-0.1 |
% |
|
1.7 |
% |
|
5.9 |
% |
|||||||
Note: Amounts may not calculate due to rounding |
|||||||||||||||||||||||||
(a) Charges represent realignment costs incurred as a result of realignment programs of which |
|||||||||||||||||||||||||
(b) Charges represent costs associated with a terminated acquisition. |
|||||||||||||||||||||||||
(c) Charge represents a further expense of |
|||||||||||||||||||||||||
(d) Charge represents a further |
|||||||||||||||||||||||||
(e) Charge represents a |
|||||||||||||||||||||||||
(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. |
SEGMENT INFORMATION |
||||||||
(Unaudited) |
|
|||||||
|
||||||||
FLOWSERVE PUMPS DIVISION |
Six Months Ended June 30, |
|||||||
(Amounts in millions, except percentages) |
|
2024 |
|
|
2023 |
|
||
Bookings |
$ |
1,602.2 |
|
$ |
1,487.8 |
|
||
Sales |
|
1,581.6 |
|
|
1,465.5 |
|
||
Gross profit |
|
508.2 |
|
|
448.2 |
|
||
Gross profit margin |
|
32.1 |
% |
|
30.6 |
% |
||
SG&A |
|
275.8 |
|
|
279.8 |
|
||
Segment operating income |
|
241.9 |
|
|
177.1 |
|
||
Segment operating income as a percentage of sales |
|
15.3 |
% |
|
12.1 |
% |
||
|
||||||||
FLOW CONTROL DIVISION |
Six Months Ended June 30, |
|||||||
(Amounts in millions, except percentages) |
|
2024 |
|
|
2023 |
|
||
Bookings |
$ |
689.9 |
|
$ |
691.6 |
|
||
Sales |
|
668.2 |
|
|
599.3 |
|
||
Gross profit |
|
199.0 |
|
|
173.4 |
|
||
Gross profit margin |
|
29.8 |
% |
|
28.9 |
% |
||
SG&A |
|
119.0 |
|
|
118.7 |
|
||
Loss on sale of business |
|
(13.0 |
) |
|
- |
|
||
Segment operating income |
|
67.0 |
|
|
54.6 |
|
||
Segment operating income as a percentage of sales |
|
10.0 |
% |
|
9.1 |
% |
Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) |
|||||||||||||||||||||||
(Amounts in thousands) |
|||||||||||||||||||||||
Flowserve Pumps Division |
|||||||||||||||||||||||
Six Months Ended June 30, 2024 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
Six Months Ended June 30, 2023 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
||||||||||||||||
Reported |
$ |
508,153 |
|
$ |
275,763 |
|
$ |
241,872 |
|
Reported |
$ |
448,241 |
|
$ |
279,759 |
|
$ |
177,076 |
|
||||
Reported as a percent of sales |
|
32.1 |
% |
|
17.4 |
% |
|
15.3 |
% |
Reported as a percent of sales |
|
30.6 |
% |
|
19.1 |
% |
|
12.1 |
% |
||||
Realignment charges (a) |
|
12,422 |
|
|
(321 |
) |
|
12,743 |
|
Realignment charges (a) |
|
1,343 |
|
|
(2,067 |
) |
|
3,410 |
|
||||
Discrete item (b) |
|
- |
|
|
2,000 |
|
|
(2,000 |
) |
Discrete asset write-downs (b)(c)(d) |
|
1,969 |
|
|
(3,955 |
) |
|
5,924 |
|
||||
Adjusted |
$ |
520,575 |
|
$ |
277,442 |
|
$ |
252,615 |
|
Adjusted |
$ |
451,553 |
|
$ |
273,737 |
|
$ |
186,410 |
|
||||
Adjusted as a percent of sales |
|
32.9 |
% |
|
17.5 |
% |
|
16.0 |
% |
Adjusted as a percent of sales |
|
30.8 |
% |
|
18.7 |
% |
|
12.7 |
% |
||||
Flow Control Division |
|||||||||||||||||||||||
Six Months Ended June 30, 2024 |
Gross Profit |
Selling, General & Administrative Expense |
Loss on Sale of Business |
Operating Income |
Six Months Ended June 30, 2023 |
Gross Profit |
Selling, General & Administrative Expense |
Operating Income |
|||||||||||||||
Reported |
$ |
198,966 |
|
$ |
119,026 |
|
$ |
12,981 |
|
$ |
66,959 |
|
Reported |
$ |
173,351 |
|
$ |
118,702 |
|
$ |
54,649 |
|
|
Reported as a percent of sales |
|
29.8 |
% |
|
17.8 |
% |
|
1.9 |
% |
|
10.0 |
% |
Reported as a percent of sales |
|
28.9 |
% |
|
19.8 |
% |
|
9.1 |
% |
|
Realignment charges (a) |
|
988 |
|
|
(61 |
) |
|
(12,981 |
) |
|
14,030 |
|
Realignment charges (a) |
|
3,164 |
|
|
(8,906 |
) |
|
12,070 |
|
|
Discrete item (c) |
|
- |
|
|
(1,100 |
) |
|
- |
|
|
1,100 |
|
Acquisition related (e) |
|
- |
|
|
(5,952 |
) |
|
5,952 |
|
|
Adjusted |
$ |
199,954 |
|
$ |
117,865 |
|
$ |
- |
|
$ |
82,089 |
|
Adjusted |
$ |
176,515 |
|
$ |
103,844 |
|
$ |
72,671 |
|
|
Adjusted as a percent of sales |
|
29.9 |
% |
|
17.6 |
% |
|
0.0 |
% |
|
12.3 |
% |
Adjusted as a percent of sales |
|
29.5 |
% |
|
17.3 |
% |
|
12.1 |
% |
|
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 |
(a) Charges represent realignment costs incurred as a result of realignment programs of which |
||||||||||||||||||||||
(b) Represents a reduction to reserves associated with our ongoing financial exposure in |
(b) Charge represents a further expense of |
||||||||||||||||||||||
(c) Charge represents costs associated with merger and acquisition activity. |
(c) Charge represents a further |
||||||||||||||||||||||
(d) Charge represents a |
|||||||||||||||||||||||
(e) Charges represent costs associated with a terminated acquisition. |
Second Quarter and Year-to-Date 2024 - Segment Results |
|||||||||||||||||||||||||
(dollars in millions, comparison vs. 2023 second quarter and year-to-date, unaudited) |
|||||||||||||||||||||||||
FPD |
FCD |
||||||||||||||||||||||||
2nd Qtr |
YTD |
2nd Qtr |
YTD |
||||||||||||||||||||||
Bookings |
$ |
898.8 |
|
$ |
1,602.2 |
|
$ |
349.2 |
|
$ |
689.9 |
|
|||||||||||||
- vs. prior year |
|
138.8 |
|
18.3 |
% |
|
114.4 |
|
7.7 |
% |
|
-10.5 |
|
-2.9 |
% |
|
-1.7 |
|
-0.2 |
% |
|||||
- on constant currency |
|
145.6 |
|
19.2 |
% |
|
120.7 |
|
8.1 |
% |
|
-8.3 |
|
-2.3 |
% |
|
1.3 |
|
0.2 |
% |
|||||
Sales |
$ |
812.2 |
|
$ |
1,581.6 |
|
$ |
347.7 |
|
$ |
668.2 |
|
|||||||||||||
- vs. prior year |
|
46.8 |
|
6.1 |
% |
|
116.1 |
|
7.9 |
% |
|
30.0 |
|
9.4 |
% |
|
68.9 |
|
11.5 |
% |
|||||
- on constant currency |
|
52.0 |
|
6.8 |
% |
|
118.2 |
|
8.1 |
% |
|
32.0 |
|
10.1 |
% |
|
71.2 |
|
11.9 |
% |
|||||
Gross Profit |
$ |
260.2 |
|
$ |
508.2 |
|
$ |
106.3 |
|
$ |
199.0 |
|
|||||||||||||
- vs. prior year |
|
14.7 |
% |
|
13.4 |
% |
|
14.2 |
% |
|
14.8 |
% |
|||||||||||||
Gross Margin (% of sales) |
|
32.0 |
% |
|
32.1 |
% |
|
30.6 |
% |
|
29.8 |
% |
|||||||||||||
- vs. prior year (in basis points) |
240 bps |
150 bps |
130 bps |
90 bps |
|||||||||||||||||||||
Operating Income |
$ |
131.0 |
|
$ |
241.9 |
|
$ |
32.3 |
|
|
|
$ |
67.0 |
|
|
||||||||||
- vs. prior year |
|
33.0 |
|
33.7 |
% |
|
64.8 |
|
36.6 |
% |
|
-3.8 |
|
-10.5 |
% |
|
|
12.4 |
|
22.7 |
% |
||||
- on constant currency |
|
34.5 |
|
35.2 |
% |
|
66.6 |
|
37.6 |
% |
|
-3.3 |
|
-9.4 |
% |
|
|
13.2 |
|
23.9 |
% |
||||
|
|
|
|
|
|||||||||||||||||||||
Operating Margin (% of sales) |
|
16.1 |
% |
|
15.3 |
% |
|
9.3 |
% |
|
|
|
10.0 |
% |
|
||||||||||
- vs. prior year (in basis points) |
330 bps |
320 bps |
(210) bps |
90 bps |
|||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
Adjusted Operating Income * |
$ |
137.6 |
|
$ |
252.6 |
|
$ |
46.5 |
|
|
|
$ |
82.1 |
|
|
||||||||||
- vs. prior year |
|
36.8 |
|
36.5 |
% |
|
66.2 |
|
35.5 |
% |
|
4.4 |
|
10.5 |
% |
|
|
9.4 |
|
12.9 |
% |
||||
- on constant currency |
|
38.3 |
|
38.0 |
% |
|
68.0 |
|
36.5 |
% |
|
4.9 |
|
11.5 |
% |
|
|
10.2 |
|
14.0 |
% |
||||
|
|
|
|
||||||||||||||||||||||
Adj. Oper. Margin (% of sales)* |
|
16.9 |
% |
|
16.0 |
% |
|
13.4 |
% |
|
|
|
12.3 |
% |
|
||||||||||
- vs. prior year (in basis points) |
370 bps |
330 bps |
10 bps |
|
|
20 bps |
|
||||||||||||||||||
|
|
||||||||||||||||||||||||
Backlog |
$ |
1,857.8 |
|
$ |
837.5 |
|
|||||||||||||||||||
* Adjusted Operating Income and Adjusted Operating Margin exclude realignment charges and other specific discrete items |
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(Unaudited) |
|||||||
June 30, |
December 31, |
||||||
(Amounts in thousands, except par value) |
|
2024 |
|
|
2023 |
|
|
|
|||||||
ASSETS |
|
||||||
Current assets: |
|
||||||
Cash and cash equivalents |
$ |
515,083 |
|
$ |
545,678 |
|
|
Accounts receivable, net of allowance for expected credit losses of |
|
1,031,656 |
|
|
881,869 |
|
|
Contract assets, net of allowance for expected credit losses of |
|
287,676 |
|
|
280,228 |
|
|
Inventories |
|
851,305 |
|
|
879,937 |
|
|
Prepaid expenses and other |
|
130,095 |
|
|
116,065 |
|
|
Total current assets |
|
2,815,815 |
|
|
2,703,777 |
|
|
Property, plant and equipment, net of accumulated depreciation of |
|
491,864 |
|
|
506,158 |
|
|
Operating lease right-of-use assets, net |
|
157,797 |
|
|
156,430 |
|
|
Goodwill |
|
1,170,555 |
|
|
1,182,225 |
|
|
Deferred taxes |
|
214,930 |
|
|
218,358 |
|
|
Other intangible assets, net |
|
117,236 |
|
|
122,248 |
|
|
Other assets, net of allowance for expected credit losses of |
|
196,287 |
|
|
219,523 |
|
|
Total assets |
$ |
5,164,484 |
|
$ |
5,108,719 |
|
|
|
|
||||||
LIABILITIES AND EQUITY |
|
|
|||||
Current liabilities: |
|
|
|||||
Accounts payable |
$ |
557,145 |
|
$ |
547,824 |
|
|
Accrued liabilities |
|
457,697 |
|
|
504,430 |
|
|
Contract liabilities |
|
293,354 |
|
|
287,697 |
|
|
Debt due within one year |
|
66,439 |
|
|
66,243 |
|
|
Operating lease liabilities |
|
31,705 |
|
|
32,382 |
|
|
Total current liabilities |
|
1,406,340 |
|
|
1,438,576 |
|
|
Long-term debt due after one year |
|
1,211,611 |
|
|
1,167,307 |
|
|
Operating lease liabilities |
|
145,016 |
|
|
138,665 |
|
|
Retirement obligations and other liabilities |
|
385,193 |
|
|
389,120 |
|
|
Shareholders’ equity: |
|
|
|||||
Common shares, |
|
220,991 |
|
|
220,991 |
|
|
Shares authorized – 305,000 |
|
|
|||||
Shares issued – 176,793 and 176,793, respectively |
|
|
|||||
Capital in excess of par value |
|
489,786 |
|
|
506,525 |
|
|
Retained earnings |
|
3,945,577 |
|
|
3,854,717 |
|
|
Treasury shares, at cost – 45,620 and 45,885 shares, respectively |
|
(2,004,494 |
) |
|
(2,014,474 |
) |
|
Deferred compensation obligation |
|
7,979 |
|
|
7,942 |
|
|
Accumulated other comprehensive loss |
|
(689,775 |
) |
|
(639,601 |
) |
|
Total Flowserve Corporation shareholders' equity |
|
1,970,064 |
|
|
1,936,100 |
|
|
Noncontrolling interests |
|
46,260 |
|
|
38,951 |
|
|
Total equity |
|
2,016,324 |
|
|
1,975,051 |
|
|
Total liabilities and equity |
$ |
5,164,484 |
|
$ |
5,108,719 |
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited) |
|
||||||
Six Months Ended June 30, |
|||||||
(Amounts in thousands) |
|
2024 |
|
|
2023 |
|
|
|
|||||||
Cash flows – Operating activities: |
|
||||||
Net earnings (loss), including noncontrolling interests |
$ |
154,367 |
|
$ |
85,151 |
|
|
Adjustments to reconcile net earnings (loss) to net cash provided (used) by operating activities: |
|
|
|||||
Depreciation |
|
37,883 |
|
|
37,452 |
|
|
Amortization of intangible and other assets |
|
4,391 |
|
|
5,158 |
|
|
Loss on sale of business |
|
12,981 |
|
|
- |
|
|
Stock-based compensation |
|
17,400 |
|
|
15,878 |
|
|
Foreign currency, asset write downs and other non-cash adjustments |
|
10,935 |
|
|
(8,418 |
) |
|
Change in assets and liabilities: |
|||||||
Accounts receivable, net |
|
(168,540 |
) |
|
(5,350 |
) |
|
Inventories |
|
3,603 |
|
|
(99,240 |
) |
|
Contract assets, net |
|
(13,267 |
) |
|
9,917 |
|
|
Prepaid expenses and other assets, net |
|
10,945 |
|
|
(105 |
) |
|
Accounts payable |
|
14,376 |
|
|
7,118 |
|
|
Contract liabilities |
|
10,894 |
|
|
10,831 |
|
|
Accrued liabilities |
|
(47,795 |
) |
|
(2,091 |
) |
|
Retirement obligations and other liabilities |
|
4,402 |
|
|
8,412 |
|
|
Net deferred taxes |
|
(3,100 |
) |
|
(14,329 |
) |
|
Net cash flows provided (used) by operating activities |
|
49,475 |
|
|
50,384 |
|
|
Cash flows – Investing activities: |
|
|
|||||
Capital expenditures |
|
(28,289 |
) |
|
(31,893 |
) |
|
Payments for disposition of business |
|
(2,352 |
) |
|
- |
|
|
Other |
|
551 |
|
|
(941 |
) |
|
Net cash flows provided (used) by investing activities |
|
(30,090 |
) |
|
(32,834 |
) |
|
Cash flows – Financing activities: |
|||||||
Payments on term loan |
|
(30,000 |
) |
|
(20,000 |
) |
|
Proceeds under revolving credit facility |
|
100,000 |
|
|
150,000 |
|
|
Payments under revolving credit facility |
|
(25,000 |
) |
|
(100,000 |
) |
|
Proceeds under other financing arrangements |
|
562 |
|
|
197 |
|
|
Payments under other financing arrangements |
|
(1,460 |
) |
|
(3,458 |
) |
|
Repurchases of common shares |
|
(16,161 |
) |
|
- |
|
|
Payments related to tax withholding for stock-based compensation |
|
(9,093 |
) |
|
(6,235 |
) |
|
Payments of dividends |
|
(55,259 |
) |
|
(52,471 |
) |
|
Other |
|
(272 |
) |
|
(320 |
) |
|
Net cash flows provided (used) by financing activities |
|
(36,683 |
) |
|
(32,287 |
) |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(13,297 |
) |
|
2,603 |
|
|
Net change in cash and cash equivalents |
|
(30,595 |
) |
|
(12,134 |
) |
|
Cash and cash equivalents at beginning of period |
|
545,678 |
|
|
434,971 |
|
|
Cash and cash equivalents at end of period |
$ |
515,083 |
|
$ |
422,837 |
|
|
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" 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: 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, Latin American, Asian 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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240729279537/en/
Investor Contacts:
Jay Roueche, Vice President, Investor Relations & Treasurer, (972) 443-6560
Tarek Zeni, Director, Investor Relations, (469) 420-4045
Media Contact:
Wes Warnock, Vice President, Marketing, Communications & Public Affairs, (972) 443-6900
Source: Flowserve Corporation
FAQ
What is Flowserve's reported EPS for Q2 2024?
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