Flowserve Provides Coronavirus (COVID-19) Update
Flowserve’s first priority is to protect the health and safety of its associates, suppliers and customers. Throughout this pandemic, Flowserve has maintained cross-functional crisis management teams to respond to the changing conditions. Many of the company’s global locations, including manufacturing facilities, Quick Response Centers (QRCs), Global Technology & Engineering Centers (GTEC) and corporate headquarters, have incurred periods of temporary closures
Despite country, state and local authorities issuing various shelter in place orders, Flowserve’s products and services are classified as an essential business in most of the locations where the company operates, and serving our customers and restoring operations is of utmost importance. The majority of our facilities continue to make products and provide services for our customers. In these locations, the company has taken steps to enforce social distancing practices, augment the cleaning practices of the facility, and enhance the hygiene protocol in shared spaces. Additionally, Flowserve has implemented a work-from-home policy for all employees in affected locations who are able to do so.
Flowserve continues to monitor the situation closely, and will act in accordance with decrees, orders and laws in the countries and geographies where the company operates.
Financial Flexibility and Liquidity
Flowserve continues to maintain a strong balance sheet. As of March 31, 2020, the company had available liquidity of approximately $1.3 billion, including over $600 million of cash and cash equivalents and approximately $710 million of available capacity under the company’s revolving credit facility. The company has no material near-term debt maturities, with the earliest due in March 2022. Flowserve also maintains an investment-grade credit rating from the major credit rating agencies.
Withdrawing 2020 Full Year Guidance
On February 17, 2020, Flowserve provided its guidance on certain financial metrics for full-year 2020, prior to the global spread of COVID-19. Due to the rapidly evolving impact of COVID-19, as well as end-market uncertainty, Flowserve is withdrawing its 2020 financial guidance at this time.
Flowserve’s products and services remain important to existing process industries, and the company’s installed base requires ongoing attention. In 2019, over half of Flowserve’s revenues were for parts, services and repairs to support our extensive installed base of equipment. Additionally, the majority of original equipment sales in 2019 were also to existing and operating facilities through customer’s MRO budgets. These facilities continue to operate, and Flowserve remains committed to helping them run safely and efficiently.
“Over our 230-year history, Flowserve and our legacy companies have navigated periods of challenge and uncertainty,” said Scott Rowe, Flowserve’s president and chief executive officer. “As the COVID-19 pandemic continues to evolve, our top priority will remain protecting the health, safety and well-being of our associates, suppliers and customers. Having been designated an essential business in most of the geographies in which we operate, we are committed to providing the critical support, products and services that our customers rely on.”
Source: Flowserve Corporation