Flowserve Corporation : Flowserve Corporation Reports Fourth Quarter and Full Year 2012 Results Reports Fourth Quarter & Full Year 2012 EPS of $2.83 and $8.51, respectively Announces 16.7% quarterly dividend increase per share and replenished buyback authorization of $750 million and approved a 3-for-1 stock split, subject to shareholder action Reaffirms 2013 Full Year EPS Target Range of $9.60 to $10.60 DALLAS, February 21, 2013 - Flowserve Corp. (NYSE:FLS), a leading provider of flow control products and services for the global infrastructure markets, announced today financial results for the fourth quarter and full year of 2012. In a separate release, the company also announced a 16.7% increase in its quarterly dividend to 42 cents per share, a replenished stock repurchase authorization to $750 million and an approved 3-for-1 stock split, subject to shareholder action. In addition, Flowserve today filed its 2012 Annual Report on Form 10-K with the Securities and Exchange Commission. Highlights from the fourth quarter and full year 2012 results include: Fourth Quarter 2012 (all comparisons versus fourth quarter 2011 unless otherwise noted): *Fully diluted EPS of $2.83, up 25.8% *Bookings of $1.08 billion, down 5.6%, or 4.3% excluding negative currency effects of approximately $15 million *Aftermarket bookings of $489 million, up 4.7% *Sales of $1.33 billion, up 5.0%, or 6.5% excluding negative currency effects of approximately $20 million *Aftermarket sales of $575 million, up 10.6%, or 11.0% on a constant currency basis *Gross margin increase of 50 basis points to 33.7% *SG&A as a percentage of sales up 30 basis points to 18.7% *Operating income of $202.8 million, up 4.9%, or 6.4% excluding negative currency effects of approximately $3 million *Operating margin constant at 15.3% Full Year 2012 (all comparisons versus full year 2011 unless otherwise noted): *Fully diluted EPS of $8.51, up 11.4%, including $0.85 of net negative currency effects *Bookings of $4.71 billion, up 1.1%, or 5.5% excluding negative currency effects of approximately $204 million *Aftermarket bookings of $1.93 billion, up 4.0%, or 7.1% on a constant currency basis *Sales of $4.75 billion, up 5.3%, or 9.9% excluding negative currency effects of approximately $204 million *Aftermarket sales of $1.95 billion, up 5.6%, or 9.0% on a constant currency basis *Gross margin decrease of 30 basis points to 33.3% *SG&A as a percentage of sales down 90 basis points to 19.4 *Operating income of $675.8 million, up 9.2%, or 15.0% excluding negative currency effects of approximately $36 million *Operating margin increase of 50 basis points to 14.2% *Backlog at December 31, 2012 of $2.65 billion, including positive currency effects of $22 million, compared to $2.69 billion in backlog at December 31, 2011 Mark Blinn, Flowserve president and chief executive officer, said, "I am pleased with our fourth quarter performance, which was a good finish to the year and culminated in our solid full year 2012 results as we managed through a challenging macroeconomic environment. During the year, we focused internally on operational efficiency and leveraging our 'One Flowserve' initiative. As a result of these operational improvements and our increased focus on cost, we delivered on our long-term goal of leveraging mid-single digit organic revenue growth into double-digit earnings per share growth. "As the year progressed, we also improved upon our order execution process and heightened our discipline and selectivity, resulting in both bookings growth and a higher quality of projects in backlog. Our aftermarket business continued to show strength, with our end-user focus and strategic localization initiatives supporting our highest annual aftermarket bookings level over $1.9 billion. "Looking forward to fiscal 2013, we expect to build upon last year's progress and capitalize on anticipated improving economic growth rates in latter 2013 to drive long-term value for our shareholders. While global macroeconomic uncertainty remains, we anticipate modest improvement in the U.S., stability in our European exposures and solid opportunities in the developing regions that we targeted with additional capacity in 2012. When value-creating opportunities arise, we are also well positioned to execute on our inorganic growth strategy, targeting bolt-on opportunities where we can leverage our global sales force and aftermarket platform to grow the business at a faster pace." Financial Performance and Guidance Mike Taff, senior vice president and chief financial officer, said, "Our strong execution and operational excellence efforts throughout the year resulted in over 11% earnings per share growth and operating margin expansion of 50 basis points, keeping us on track for our previously announced 2014 margin improvement target of 150 to 250 basis points above 2011 margins. While opportunities remain, our recent working capital initiatives contributed to the strong operating cash flow of $517 million generated during the year. "We returned nearly $850 million of capital to shareholders during 2012, as we also executed on our capital structure strategies to increase the efficiency of our balance sheet while remaining positioned for profitable growth investments. Throughout, we maintained a disciplined approach to capital deployment and continued investing to optimize our operational platform and further grow our business. I am pleased that our Board of Directors has recently approved a 16.7% dividend increase, replenished our share repurchase authorization to $750 million and approved a 3-for-1 stock split, subject to shareholder action, all of which we believe will prove beneficial to our owners. "Similar to 2012, our 2013 earnings guidance of $9.60 to $10.60 per share will reflect traditional seasonality, as well as the impact on our backlog of a slowing economy in latter 2012, and thus will have earnings weighted towards the second half of the year. We further expect the 2013 first quarter to be the trough of the year, with a somewhat challenging year-over-year compare primarily due to Venezuela's recent devaluation of the bolivar, with a forecasted first quarter 2013 impact of approximately $3 million, as well as a higher effective tax rate, and with the one-time $10.4 million benefit recognized in the first quarter of 2012 resulting from the sale of our prior Rio de Janeiro facility. Although our 2013 earnings will be weighted toward the second half of the year, we remain confident in our ability to achieve our full-year goals." Operational Commentary and Segment Performance (all comparisons versus fourth quarter 2011 or full year 2011 unless otherwise noted) Tom Pajonas, senior vice president and chief operating officer, said, "I am pleased with the operational improvements we made throughout 2012, as certain key initiatives such as on-time delivery, working capital management, reduced cost of quality and low-cost sourcing allowed the company to achieve disciplined, profitable growth and further positioned the business to capture expected improvements in our end markets. We saw solid activity across our served industries in 2012, with the exception of power, which remains soft and competitive. While most of our original equipment activity consisted of small to mid-sized projects, as we look at 2013 we are encouraged that pre-FEED and FEED work remains at high levels, and we continue to expect the final approval of certain larger projects in the second half of 2013." Engineered Product Division (EPD) EPD bookings for the fourth quarter of 2012 decreased to $558.4 million, down $31.6 million or 5.4%, or 4.0% excluding negative currency effects of approximately $8 million. Bookings for the full year 2012 increased to $2.37 billion, up $39.6 million or 1.7%, or 6.2% excluding negative currency effects of approximately $105 million. EPD sales for the fourth quarter of 2012 increased to $714.2 million, up $48.1 million or 7.2%, or 9.0% excluding negative currency effects of approximately $12 million. Sales for the full year 2012 increased to $2.40 billion, up $81.7 million or 3.5%, or 8.1% excluding negative currency effects of approximately $106 million. EPD gross profit for the fourth quarter of 2012 increased to $239.8 million, up $9.7 million or 4.2%. Gross margin for the fourth quarter of 2012 decreased 90 basis points to 33.6%. Gross profit for the full year 2012 increased to $811.2 million, up $7.8 million or 1.0%. Gross margin for the full year 2012 decreased 80 basis points to 33.8%, which was primarily attributable to a larger effect on revenue of certain large projects at low margins, partially offset by the effects of operational execution improvements and a sales mix shift towards higher margin aftermarket sales. EPD operating income for the fourth quarter of 2012 decreased to $121.8 million, down $3.0 million or 2.4%, or 0.8% excluding negative currency effects of approximately $2 million. Operating income for the full year 2012 increased to $396.1 million, up $0.9 million or 0.2%, or 5.3% excluding negative currency effects of approximately $20 million. The full year increase was primarily attributable to the increase in gross profit, partially offset by increased SG&A. Fourth quarter operating margin decreased 160 basis points to 17.1%. Full year 2012 operating margin decreased 50 basis points to 16.5%. "Full year constant currency bookings growth for EPD was driven by the chemical, oil and gas and general industries. Full year sales growth was led by the North America, Middle East and Asia Pacific regions. Operating margin of 16.5% for 2012 was solid in a mixed market environment, considering the negative impact from currency and the shipment of certain large projects with low margins. Our focus throughout the year on project selectivity, operational improvements and a sales mix shift towards aftermarket helped offset some of this impact, as evidenced by improvements in the second half of 2012," commented Pajonas. Industrial Product Division (IPD) IPD bookings for the fourth quarter of 2012 decreased to $206.7 million, down $24.2 million or 10.5%, or 9.6% excluding negative currency effects of $2 million. Bookings for the full year 2012 increased to $964.3 million, up $58.9 million or 6.5%, or 10.4% excluding negative currency effects of approximately $35 million. IPD sales for the fourth quarter of 2012 increased to $265.5 million, up $3.8 million or 1.5%, or 2.2% excluding negative currency effects of approximately $2 million. Sales for the full year 2012 increased to $953.9 million, up $75.7 million or 8.6%, or 12.1% excluding negative currency effects of approximately $31 million. IPD gross profit for the fourth quarter of 2012 increased to $65.8 million, up $8.6 million or 15.0%. Gross margin for the fourth quarter of 2012 increased 290 basis points to 24.8%. Gross profit for the full year 2012 increased to $230.3 million, up $32.8 million or 16.6%. Gross margin for the full year 2012 increased 160 basis points to 24.1%, which was primarily attributable to charges related to the IPD recovery plan incurred in 2011 that did not recur, lower costs resulting from operational improvements and continued realization of realignment savings, partially offset by a sales mix shift to lower margin original equipment sales. IPD operating income for the fourth quarter of 2012 increased to $31.7 million, up $8.0 million or 33.8%. Operating income for the full year 2012 increased to $99.5 million, up $36.6 million or 58.2%, or 64.5% excluding negative currency effects of approximately $4 million. The full year increase was primarily attributable to the increase in gross profit and a decrease in SG&A. Fourth quarter 2012 operating margin increased 280 basis points to 11.9%. Full year 2012 operating margin increased 320 basis points to 10.4%. "I am pleased with the progress IPD made in 2012, which has demonstrated that its recovery plan remains on track," Pajonas added. "IPD delivered double-digit constant currency improvements in bookings and sales for the full year, which were driven by activity in the oil and gas and chemical industries. Both gross margin and operating margin improved for the full year and fourth quarter, resulting from the operational improvements, continued realization of realignment savings and SG&A cost controls that are part of the recovery plan." Flow Control Division (FCD) FCD bookings for the fourth quarter of 2012 decreased to $354.2 million, down $23.4 million or 6.2%, or 4.9% excluding negative currency effects of approximately $5 million. Bookings for the full year 2012 decreased to $1.53 billion, down $76.2 million or 4.8%, or 0.8% excluding negative currency effects of approximately $63 million. FCD sales for the fourth quarter of 2012 increased to $396.9 million, up $16.6 million or 4.4%, or 5.7% excluding negative currency effects of approximately $5 million. Sales for the full year 2012 increased to $1.56 billion, up $83.8 million or 5.7%, or 10.2% excluding negative currency effects of approximately $67 million. FCD gross profit for the fourth quarter of 2012 increased to $142.3 million, up $9.6 million or 7.2%. Gross margin for the fourth quarter of 2012 increased 100 basis points to 35.9%. Gross profit for the full year 2012 increased to $541.4 million, up $29.9 million or 5.8%. Gross margin for the full year 2012 was 34.8%, which was comparable to 2011. FCD operating income for the fourth quarter of 2012 increased to $69.0 million, up $6.9 million or 11.1%, or 12.7% excluding negative currency effects of approximately $1 million. Operating income for the full year 2012 increased to $253.4 million, up $20.1 million or 8.6%, or 13.8% excluding negative currency effects of approximately $12 million. The full year increase was primarily attributable to the increase in gross profit, partially offset by an increase in SG&A, which was attributable to increased selling and research and development costs. Fourth quarter 2012 operating margin increased 110 basis points to 17.4%. Full year 2012 operating margin increased 50 basis points to 16.3%. "FCD delivered solid performance, even against a strong 2011 compare. Full year bookings decreased slightly on a constant currency basis, as increased activity in the Middle East was offset by decreases in Europe and Latin America. However, full year sales increased a double-digit percentage on a constant currency basis, led by strong original equipment sales into Asia Pacific and North America, which offset decreases in Europe. The 50 basis point improvement in operating margin, supported by a 60 basis point improvement in SG&A leverage, demonstrated FCD's ability to deliver continued strong operational performance," concluded Pajonas. Fourth Quarter and Full Year 2012 Results Conference Call Flowserve will host its conference call with the financial community on Friday, February 22 at 11:00 AM Eastern. Mark Blinn, 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 the Flowserve Web site at www.flowserve.com under the "Investor Relations" section. Corporate Actions In a separate press release, also issued today, Flowserve announced a number of corporate actions recently approved by its Board of Directors including a 16.7% increase in its dividend to 42 cents per share, payable April 12, 2013, a replenished share repurchase authorization to $750 million, and a 3-for-1 stock split of the company's common stock, subject to shareholder action. The company encourages investors to review the separate press release for more information and detail on these corporate actions. CONSOLIDATED BALANCE SHEETS December 31, December 31, (Amounts in thousands, 2012 2011 except per share data) ASSETS Current assets: Cash and cash $ 304,252 $ 337,356 equivalents Accounts receivable, 1,103,724 1,060,249 net Inventories, 1,086,663 1,008,379 net Deferred taxes 151,093 121,905 Prepaid expenses and 94,484 100,465 other Total current 2,740,216 2,628,354 assets Property, plant and 654,179 598,746 equipment, net Goodwill 1,053,852 1,045,077 Deferred taxes 26,706 17,843 Other intangible 150,075 163,482 assets, net Other assets, 185,930 169,112 net Total assets $ 4,810,958 $ 4,622,614 LIABILITIES AND EQUITY Current liabilities: Accounts $ 616,900 $ 597,342 payable Accrued 906,593 808,601 liabilities Debt due within one 59,478 53,623 year Deferred taxes 7,654 10,755 Total current 1,590,625 1,470,321 liabilities Long-term debt due after one 869,116 451,593 year Retirement obligations 456,742 422,470 and other liabilities Shareholders' equity: Common shares, $1.25 par 73,664 73,664 value Shares authorized - 120,000 Shares issued - 58,931 and 58,931, respectively Capital in excess of par 615,183 621,083 value Retained 2,579,308 2,205,524 earnings Treasury shares, at cost - 10,796 (1,164,496) and 5,025 (424,052) shares, respectively Deferred compensation 10,870 9,691 obligation Accumulated other comprehensive (224,310) (216,097) loss Total Flowserve Corporation 1,890,219 2,269,813 Shareholders' Equity Noncontrolling interests 4,256 8,417 Total equity 1,894,475 2,278,230 Total liabilities $ 4,810,958 $ 4,622,614 and equity CONSOLIDATED STATEMENTS OF INCOME Year Ended December 31, (Amounts in thousands, 2012 2011 2010 except per share data) Sales $ 4,751,339 $ 4,510,201 $4,032,036 Cost of sales (3,170,388) (2,996,555) (2,622,343) Gross profit 1,580,951 1,513,646 1,409,693 Selling, general and administrative (922,125) (914,080) (844,990) expense Net earnings from 16,952 19,111 16,649 affiliates Operating 675,778 618,677 581,352 income Interest expense (43,520) (36,181) (34,301) Interest income 954 1,581 1,575 Other (expense) (21,647) 3,678 (18,349) income, net Earnings before income 611,565 587,755 530,277 taxes Provision for income taxes (160,766) (158,524) (141,596) Net earnings, including 450,799 429,231 388,681 noncontrolling interests Less: Net earnings attributable to (2,460) (649) (391) noncontrolling interests Net earnings attributable $ 448,339 $ 428,582 $ 388,290 to Flowserve Corporation Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ $ $ 8.58 7.72 6.96 Diluted 8.51 7.64 6.88 Cash dividends $ $ $ declared per 1.44 1.28 1.16 share CONSOLIDATED STATEMENTS OF INCOME Three Months Ended December 31, (Amounts in thousands, 2012 2011 except per share data) Sales $ 1,328,211 $ 1,265,428 Cost of sales (880,649) (845,402) Gross profit 447,562 420,026 Selling, general and administrative (248,547) (232,462) expense Net earnings from 3,738 5,796 affiliates Operating 202,753 193,360 income Interest expense (13,644) (9,497) Interest income 227 482 Other income (expense), net 502 (4,174) Earnings before income 189,838 180,171 taxes Provision for income taxes (47,901) (54,616) Net earnings, including 141,937 125,555 noncontrolling interests Less: Net earnings attributable to (335) (458) noncontrolling interests Net earnings attributable $ 141,602 $ 125,097 to Flowserve Corporation Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ $ 2.85 2.27 Diluted 2.83 2.25 Cash dividends $ $ declared per 0.36 0.32 share CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, (Amounts in 2012 2011 2010 thousands) Cash flows - Operating activities: Net earnings, including $ 450,799 $ 429,231 $ 388,681 noncontrolling interests Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 88,572 90,509 90,653 Amortization of intangible 18,654 14,032 and other 16,908 assets Loss on early extinguishment 1,293 - 1,601 of debt Net (gain) loss on the disposition of (10,521) (149) 356 assets Gain on sale of investment - - (3,993) Excess tax benefits from stock-based (11,207) (5,668) (10,048) payment arrangements Stock-based 35,403 32,428 compensation 32,090 Net earnings from affiliates, net of (8,535) (5,213) (9,990) dividends received Change in assets and liabilities, net of acquisitions: Accounts receivable, (35,074) (243,118) (51,974) net Inventories, net (72,706) (139,754) (52,905) Prepaid expenses and (4,863) (12,227) (2,363) other Other assets, net 2,393 (3,629) 6,763 Accounts 18,179 70,741 payable 45,845 Accrued liabilities 90,773 and income (6,901) (125,591) taxes payable Retirement obligations and other (21,553) 6,682 (20,296) liabilities Net deferred 27,824 taxes (24,477) 13,463 Net cash flows provided by 517,130 218,213 355,775 operating activities Cash flows - Investing activities: Capital expenditures (135,539) (107,967) (102,002) Payments for acquisitions, net of cash (3,996) (90,505) (199,396) acquired Proceeds from disposal of 16,933 4,269 11,030 assets Affiliate investment (3,825) - 3,651 activity, net Net cash flows used by investing (126,427) (194,203) (286,717) activities Cash flows - Financing activities: Excess tax benefits from stock-based 11,207 5,668 10,048 payment arrangements Payments on long-term debt (480,000) (25,000) (544,016) Proceeds from issuance of 498,075 - - senior notes Proceeds from issuance of 400,000 - 500,000 long-term debt Proceeds from short-term 475,000 - - financing Payments on short-term (475,000) - - financing Payments of deferred loan (9,901) - (11,596) costs Borrowings under other financing 5,807 1,581 2,421 arrangements, net Repurchases of common shares (771,942) (150,000) (46,015) Payments of dividends (73,765) (69,557) (63,582) Other (8,403) (1,648) 9,827 Net cash flows used by financing (428,922) (238,956) (142,913) activities Effect of exchange rate changes on 5,115 (5,277) (22,886) cash Net change in cash and cash (33,104) (220,223) (96,741) equivalents Cash and cash equivalents at 337,356 557,579 654,320 beginning of year Cash and cash equivalents at $ 304,252 $ 337,356 $ 557,579 end of year Income taxes paid (net of $ 158,433 $ 113,921 $ 135,892 refunds) Interest paid 33,625 31,009 32,368 CONSOLIDATED QUARTERLY FINANCIAL DATA (Amounts in millions, except per share data) 2012 Quarter 4th 3rd 2nd 1st Sales $ 1,328.2 $ 1,165.9 $ 1,182.2 $1,075.0 Gross profit 447.6 389.6 384.6 359.2 Earnings before income 189.8 144.6 148.1 129.1 taxes Net earnings attributable to Flowserve 141.6 106.3 107.3 93.1 Corporation Earnings per share (1): Basic $ $ $ $ 2.85 2.09 1.99 1.71 Diluted 2.83 2.07 1.98 1.69 2011 Quarter 4th 3rd 2nd 1st Sales $ 1,265.4 $ 1,121.8 $ 1,125.8 $ 997.2 Gross profit 420.0 376.6 369.3 347.7 Earnings before income 180.2 140.0 137.0 130.6 taxes Net earnings attributable to Flowserve 125.1 107.8 98.7 97.0 Corporation Earnings per share (1): Basic $ $ $ $ 2.27 1.94 1.77 1.74 Diluted 2.25 1.92 1.76 1.72 (1) Earnings per share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding. SEGMENT INFORMATION ENGINEERED PRODUCT Three Months Ended December 31, DIVISION (Amounts in millions, 2012 2011 except percentages) Bookings $ 558.4 $ 590.0 Sales 714.2 666.1 Gross profit 239.8 230.1 Gross profit 33.6% 34.5% margin Operating income 121.8 124.8 Operating 17.1% 18.7% margin INDUSTRIAL PRODUCT Three Months Ended December 31, DIVISION (Amounts in millions, 2012 2011 except percentages) Bookings $ 206.7 $ 230.9 Sales 265.5 261.7 Gross profit 65.8 57.2 Gross profit 24.8% 21.9% margin Operating income 31.7 23.7 Operating 11.9% 9.1% margin FLOW CONTROL Three Months Ended December 31, DIVISION (Amounts in millions, 2012 2011 except percentages) Bookings $ 354.2 $ 377.6 Sales 396.9 380.3 Gross profit 142.3 132.7 Gross profit 35.9% 34.9% margin Operating income 69.0 62.1 Operating 17.4% 16.3% margin SEGMENT INFORMATION ENGINEERED PRODUCT Year Ended December 31, DIVISION (Amounts in millions, 2012 2011 2010 except percentages) Bookings $ 2,373.1 $ 2,333.5 $ 2,242.0 Sales 2,403.1 2,152.7 2,321.4 Gross profit 811.2 803.4 782.9 Gross profit 33.8% 34.6% 36.4% margin Operating income 396.1 395.2 412.6 Operating 16.5% 17.0% 19.2% margin INDUSTRIAL PRODUCT Year Ended December 31, DIVISION (Amounts in millions, 2012 2011 2010 except percentages) Bookings $ 964.3 $ $ 827.5 905.4 Sales 953.9 878.2 800.2 Gross profit 230.3 197.5 204.7 Gross profit 24.1% 22.5% 25.6% margin Operating income 99.5 62.9 68.5 Operating 10.4% 7.2% 8.6% margin FLOW CONTROL Year Ended December 31, DIVISION (Amounts in millions, 2012 2011 2010 except percentages) Bookings $ 1,526.8 $ 1,603.0 $ 1,306.6 Sales 1,557.1 1,197.5 1,473.3 Gross profit 541.4 511.5 422.3 Gross profit 34.8% 34.7% 35.3% margin Operating income 253.4 233.3 180.4 Operating 16.3% 15.8% 15.1% margin ### Flowserve Contacts Investor Contacts: Mike Mullin, director, Investor Relations (972) 443-6636 Jay Roueche, vice president, IR & Treasurer (972) 443-6560 Media Contact: Steve Boone, director, Global Communications and Public Affairs, (972) 443-6644 About Flowserve: Flowserve Corp. is one of the world's leading providers of fluid motion and control products and services. Operating in more than 55 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: 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 the global financial markets and the availability of capital 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; our ability to execute and realize the expected financial benefits from our strategic realignment initiatives; economic, political and other risks associated with our international operations, including military actions or trade embargoes that could affect customer markets, particularly 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; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Venezuela; our furnishing of products and services to nuclear power plant facilities; 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 foreign subsidiaries autonomously conducting limited business operations and sales in certain countries identified by the U.S. State Department as state sponsors of terrorism; 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; our inability to protect our intellectual property in the U.S., as well as in foreign countries; obligations under our defined benefit pension plans; 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. ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Flowserve Corporation via Thomson Reuters ONE HUG#1679408
Flowserve Corporation : Flowserve Corporation Reports Fourth Quarter and Full Year 2012 Results
Press spacebar to pause and continue. Press esc to stop.