Flowserve Corporation Reports Third Quarter 2015 Results
October 29, 2015
Source: Lars Rosene
Department: Flowserve Corporation
Phone: (972) 443-6644
- Delivers Adjusted1 EPS of $0.81 for 2015 Third Quarter
- SIHI integration and realignment programs progressing better than expected
- Returned $320 million to shareholders year-to-date through repurchases and dividends
- Full year results in current market environment expected at or around the lower end of guidance range
DALLAS--(BUSINESS WIRE)--Oct. 29, 2015-- Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, today reported Adjusted1 Earnings Per Share (EPS) of $0.81 for the 2015 third quarter, which includes $0.06 per share of negative currency translation as compared to last year and $0.03 per share of bad debt expense. As previously disclosed, Flowserve's 2015 Adjusted EPS calculation excludes the impact of the SIHI Group ("SIHI") acquisition, which was completed on January 7, 2015, as well as below-the-line foreign currency effects and specific one-time events, such as the 2015 realignment initiatives. In the 2015 third quarter, Flowserve's Adjusted EPS excluded $0.11 per share of these items.
Third Quarter 2015 Summary (all comparisons versus prior year quarter, unless otherwise noted):
- Bookings were $1.06 billion, including $69.7 million from SIHI
- Excluding SIHI's contribution, bookings decreased 6.3% sequentially and 14.6% as compared to prior year on a constant currency basis
- Aftermarket bookings of $482 million, included $22 million from SIHI, and increased 2.0% sequentially and 2.1% compared to the prior year on a constant currency basis
- Excluding SIHI's contribution, aftermarket bookings increased 2.3% sequentially and decreased 2.2% compared to the prior year on a constant currency basis
- Sales were $1.10 billion, including $73.7 million from SIHI
- Excluding SIHI's contribution, sales decreased 4.5% sequentially and 5.6% as compared to prior year on a constant currency basis
- Aftermarket sales were $462 million, or approximately 42% of total sales, and decreased 4.6% sequentially and increased 1.8% compared to prior year on a constant currency basis
- Excluding SIHI's contribution, aftermarket sales decreased 2.3% on a constant currency basis
- Gross profit was $388.8 million, including $20.9 million from SIHI
- Gross profit increased 1.4% on a constant currency basis
- Gross margin excluding adjusted items was 36.1%, up 110 basis points
- SG&A expense was $223.5 million, including $20.5 million from SIHI
- Excluding SIHI and adjusted items, SG&A decreased $27.9 million or 12.1%
- Operating income was $167.8 million, including realignment expense of $1.7 million
- Adjusted operating margin, excluding realignment expenses and SIHI operating income of $0.4 million, was 16.5%, up 50 basis points
- Backlog at September 30, 2015 was $2.56 billion, including SIHI backlog of $118 million
- Excluding SIHI, backlog decreased 5.2% constant currency as compared to prior year
1 See Reconciliation of Non-GAAP Measures table for detailed reconciliation of reported results to adjusted measures.
"Flowserve produced solid operating results for the 2015 third quarter against a persistently challenging market environment, which included constrained global capital spending, a further reduction in oil prices, weakness in our short cycle and emerging markets and the strong U.S. dollar," said Mark Blinn, Flowserve's president and chief executive officer. "Operationally, we continued to execute at a high level as evidenced by our strong margin performance."
Global Equity Consulting, LLC is engaged in driving profitable growth and value primarily for small and mid-size businesses and their owners as well as the private equity firms who may have a stake in these businesses.