Flowserve Corporation is one of the world's leading providers of industrial flow management services. Operating in 25 countries, with more than 7,000 employees, the company produces highly engineered and modular pumps, precision mechanical seals, smart, specialty, and quarter-turn valves and valve actuators, and a range of related flow managementservices. (Press Release)
Industry:MACH-GENL INDL Sector: Industrial Products Fiscal Year End:December Last Reported Quarter:12/31/11 Next EPS Date:02/22/12
Capital Structure Solvency and Cash Flow
Balance Sheet
The Company’s cash balance was $311 million at the end of 3Q10 (versus $654.3 million at the end of 4Q09), resulting in net debt of $225 million.
Cash flow from operation was negative at $16.6 million in the first nine months of 2010 versus positive cash flow in the corresponding period of prior year.
Flowserve expects 2010 capital expenditures in the range of $100 – $115 million, slightly lower than the previous guidance owing to currency fluctuations and reconsideration of certain projects.
Dividend
On December 15, 2010, Flowserve announced that its Board of Directors has authorized the payment of a quarterly cash dividend of $0.29 per share on the Company's outstanding shares of common stock. The dividend has been paid on January 14, 2011, to shareholders of record as of the close of business on December 31, 2010.
On August 12, 2010, the Board of Directors of FLS authorized the payment of a quarterly cash dividend of $0.29 per share on the Company's outstanding shares of common stock. The dividend was paid on October 14, 2010, to shareholders of record as of the close of business on September 30, 2010.
Last edited Mon Jan 31, 2011 06:24 AM by SreelaBose (Zacks Investment Research)
Governance Social Responsibility and Employee Relations
On July 16, 2010, Flowserve announced that it had agreed to acquire Valbart Srl, a privately owned Italian manufacturer of trunnion-mounted ball valves used primarily in the oil and gas industry, for about $200 million. The deal value includes $32 million in debt. Flowserve stated that it used cash on hand to fund the transaction. The acquisition was closed in the fourth quarter of 2010.
The acquisition significantly strengthens Flowserve’s ability to provide a more complete valve package to oil and gas projects.
Last edited Mon Jan 31, 2011 06:29 AM by SreelaBose (Zacks Investment Research)
• About 60% of Flowserve's revenue stems from the oil and gas and chemical industries, making the Company vulnerable during downturns in the oil and gas end markets.
• The process control industry is a highly competitive and fragmented industry. Many international, national or regional fluid-handling companies serve each of Flowserve's existing and potential markets. Competitors often target market share at the expense of margins, which could negatively impact both revenues and earnings.
• The Company’s performance has been adversely affected by macroeconomic weakness as majority of the Company's revenues come from outside the United States.
Last edited Mon Jan 31, 2011 06:32 AM by SreelaBose (Zacks Investment Research)
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