Flowserve 2014 results

Fourth quarter highlights

• Fully diluted EPS of US$1.16, up 14.9% compared to US$1.01 per share.
• Bookings of US$1.32 billion, up 5.6%, or 11.2% on a constant currency basis.
• Sales of US$1.4 billion, decreased 0.6%, or increased 5.6% on a constant currency basis.
• Gross profit increased US$15.3 million to US$485.7 million, or 3.2%.
• SG&A expense decreased US$9 million to US$251.6 million.
• Operating income increased US$25/8 million to US$238.7 million, up 12.1% or up 20.2% on a constant currency basis.
• Operating margin increased 200 basis points to 17.3%.
• Backlog increased US$147.3 million year to date to US$2.7 billion, up 5.8%, or 11.8% on a constant currency basis.

Full year highlights

• Fully diluted EPS of US$3.76, up 10.3% compared to US$3.41 per share.
Bookings of US$5.16 billion, up 5.7%, or 8% on a constant currency basis.
• Sales of US$4.88 billion, down 1.5%, or up 0.7% on a constant currency basis.
• Gross profit increased US$26.5 million to US$1.71 billion, up 1.6%.
• Gross margin improved 110 basis points to 35.2%.
• SG&A spend as a percentage of sales decreased 30 basis points to 19.2%.
• Operating incomes increased US$29.5 million to US$789.8 million, up 3.9%, or 7% on a constant currency basis.
• Operating margin increased 90 basis points to 16.2%.
• Full year operating cash flow increased over US$80 million, up 17%, to US$571 million.

Comments

Mark Blinn, President and CEO said, “I am pleased with our solid fourth quarter and full year results, as we drove continued gross and operating margin improvement through our strong operating performance and sound bidding discipline. We executed at a high level throughout 2014 and we believe our operating platform is performing as well as ever. Although we are not immune to the recent decline in crude oil price or the strengthening US dollar, I believe Flowserve is well positioned, and will pursue numerous growth opportunities, in this environment. With a strong financial foundation, combined with our improved backlog, resilient aftermarket franchise, diverse market and geographic exposures, and a proven ability to manage our cost structure, we are prepared to deliver on our recent 2015 financial targets and are confident reaffirming today.”

Edited from press release by Claira Lloyd

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