Flowserve Quarterly Earnings More Than Double Over Prior Year; Reports Significant Improvements in Bookings and Operating Income
DALLAS, Oct. 22 /PRNewswire/ -- Flowserve Corp. (NYSE: FLS) today announced net income of 38 cents a share, excluding special items, for the third quarter of 2001. This compares with a prior year pro forma net loss of 10 cents a share, and is more than double reported net income of 18 cents a share in the third quarter of 2000, calculated on the same basis.
Bookings increased 5 percent to $485.6 million in the third quarter of
2001 compared with pro forma $461.1 million in the prior year period.
Excluding unfavorable currency translation, bookings for the third quarter of
2001 were 7 percent above pro forma bookings for the prior year period.
Reported bookings were $399.2 million in the third quarter of 2000.
Reported operating income increased more than 450 percent to $37.5 million
in the third quarter of 2001 compared with $6.7 million in the year ago
quarter. Excluding special items in both periods, operating income increased
72 percent to $51.3 million in the third quarter of 2001 compared with pro
forma of $29.8 million in the year ago quarter. Calculated on the same basis,
reported operating income was $34.3 million in the third quarter of 2000.
Operating margin, excluding special items in both periods, improved 460
basis points to 10.9 percent for the third quarter of 2001 compared with pro
forma of 6.3 percent for the prior year period, and it improved 260 basis
points compared with a reported 8.3 percent for the third quarter of 2000.
Pro forma results give effect as if the company's August 2000 acquisition
of Ingersoll-Dresser Pump Co. (IDP) had been completed on Jan. 1, 2000, and
include purchase accounting adjustments and estimated financing costs.
Special items include integration expenses in 2001, and integration and
restructuring expenses, and extraordinary items in 2000.
"Flowserve performed especially well in the third quarter of 2001 in the
face of some extremely difficult circumstances," said Flowserve Chairman,
President and Chief Executive Officer C. Scott Greer. "The continuing
improvements in results and margins clearly illustrate the benefits from the
acquisition of IDP. This improvement was made despite the adverse impact the
September terrorist attacks had on our quick turnaround business, where
business temporarily stalled after Sept. 11. Were it not for this, our
results would have been even better. Also, we're pleased to see progress in
addressing integration inefficiencies within our pump operations.
"The increase in bookings primarily arose in our pump business, which we
are delighted to see after our acquisition of IDP," Greer said. "This is
especially notable since tighter security policies at many of our major
customer sites in response to the terrorist attacks adversely impacted
September bookings. Overall, project activity in the petroleum, power and
water markets remains healthy and should constitute a good indicator of our
business for the future. As of Sept. 30, our backlog was $756.4 million
compared with $738.7 million as of June 30, and $659.3 million at year end
Source: Flowserve Corporation