Flowserve Corporation : Flowserve Corporation Reports Fourth Quarter and Full Year 2012 Results

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
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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
 
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