Flowserve Corporation Reports Second Quarter 2016 Results

Source: Lars Rosene

Department: Vice President, Global Communications and Public Affairs

Phone: (972) 443-6644

DALLAS–(BUSINESS WIRE)–Jul. 28, 2016– Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, today reported its financial results for the second quarter ended June 30, 2016.

Second Quarter 2016 Highlights [1]:

• Reported Earnings Per Share of $0.48 includes $0.09 per share of adjusted items, as detailed herein, and approximately $0.01 per share of negative currency translation
• Adjusted Earnings Per Share (EPS)[2] was $0.57, excluding the adjusted items but including the negative currency translation
• Sales were $1.03 billion, down 11.7% or 9.7% on a constant currency basis, and up 6.7% sequentially on a constant currency basis
• Original equipment sales were $574 million, down 13.5% on a constant currency basis
• Aftermarket sales were $456 million, down 4.8% on a constant currency basis
• Total Bookings were $975 million, down 10.1% on a constant currency basis, and up 4.0% sequentially on a constant currency basis
• Aftermarket bookings were $480 million, up 2.3%, and 5.6% sequentially, on a constant currency basis
• Adjusted gross margin decreased 130 basis points to 32.7%
• Achieved approximately $27 million of realignment savings in the quarter, with progress to date on track to deliver expected incremental savings of approximately $100 million in 2016
• Backlog at June 30, 2016 was $2.10 billion, down 3.2% versus year-end 2015

“We delivered solid results in the 2016 second quarter which were generally in-line with our expectations for the period,” said Mark Blinn, Flowserve’s president and chief executive officer. “Our aftermarket business remained resilient during the quarter, evidenced by modest constant currency bookings growth. For the larger project original equipment opportunities, however, we expect that our customers will remain cautious, and that capital investment decisions will remain deliberate and the process iterative until our customers’ confidence improves. In spite of headwinds, we realized traction from our commercial strategies within in all areas, notably the IPD segment, driving constant currency bookings growth of 3.4%.

Read the full Flowserve Corporation Reports Second Quarter 2016 Results article.

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