Flowserve Sells Government Marine Business Unit
Flowserve Corp. today announced that it has sold its Government Marine Business Unit, located in Phillipsburg, N.J., to Curtiss-Wright Corp.for approximately $28 million in cash. Proceeds from the sale will be used to repay debt.
"The GMBU serves a niche in a non-core market and represents a small percentage of Flowserve's total business," said Flowserve Chairman, President and Chief Executive Officer C. Scott Greer. "Flowserve's strategy is to focus growth on our core end-user markets to capture the full life cycle of our products and enhance our end-user support."
The transaction, which the company expects will generate a pretax gain of about $8 million, closed on Nov. 10, with a retroactive effective date of Nov. 1.
The GMBU provides pump technology and service for U.S. Navy submarines and aircraft carriers. In 2003, the business generated about $26 million of revenues.
Flowserve Corp. is one of the world's leading providers of fluid motion and control products and services. Operating in 56 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services.
SAFE HARBOR STATEMENT: This news release contains various forward-looking statements and includes assumptions about Flowserve's future financial and market conditions, operations and results. In some cases forward- looking statements can be identified by terms such as "may," "will," "should," "expect," "forecast," "plans," "projects," "seeks," "anticipate," "believe," "estimate," "predicts," "potential," "continue," "intends," or other comparable terminology. These statements are based on current expectations and are subject to significant risks and uncertainties. They are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Among the many factors that could cause actual results to differ materially from the forward-looking statements are: changes in the financial markets and the availability of capital; changes in the already competitive environment for the company's products or competitors' responses to Flowserve's strategies; the company's ability to integrate past and future acquisitions into its management operations; political risks, military actions or trade embargoes affecting customer markets, including the continuing conflict in Iraq and its potential impact on Middle Eastern markets and global petroleum producers; the health of the petroleum, chemical, power and water industries; economic conditions and the extent of economic growth in areas inside and outside the U.S.; unanticipated difficulties or costs associated with the implementation of systems, including software; the company's relative geographical profitability and its impact on the company's utilization of foreign tax credits; the recognition of significant expenses associated with realigning the company's combined operations with acquired companies; the company's ability to meet the financial covenants and other requirements in the financing agreements; further repercussions from the terrorist attacks of Sept. 11, 2001, the threat of future attacks and the response of the U.S. to those attacks; technological developments in the company's products as compared with those of its competitors; changes in prevailing interest rates and the effective interest costs that the company bears; adverse changes in the regulatory climate and other legal obligations imposed upon the company; and delays in meeting the deadline for the report of management and the independent auditor on the company's internal controls over financial reporting and related certification. Flowserve undertakes no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise.
Source: Flowserve Corporation