Flowserve’s Second Quarter 2006
Flowserve said that second quarter 2006 reported bookings increased to $912 million, a second quarter record, while backlog increased to a record $1.39 billion. The company also said that second quarter 2006 organic bookings were up sharply compared with the prior year period.
Second quarter 2006 organic bookings of $910 million compare with second quarter 2005 organic bookings of $696 million, and second quarter 2005 reported bookings of $723 million. Therefore, organic bookings increased about 31 percent in the second quarter of 2006 compared with the second quarter 2005 organic bookings. Reported bookings for the second quarter of 2006 increased by 26 percent compared with the prior year period. On July 12, 2006, the company had announced preliminary bookings of approximately $900 million for the second quarter of 2006.
Organic bookings differ from reported bookings by excluding divested operations, where applicable, in relevant periods and the effect of currency in 2006 periods. The company divested its General Services operations, which had 2005 bookings of $95 million, effective Dec. 31, 2005. The company's second quarter 2006 bookings include a $2 million currency benefit versus the prior year period.
Second quarter 2006 ending backlog increased approximately 13 percent to approximately $1.39 billion, compared with $1.23 billion at March 31, 2006. Currency had a 3 percent positive impact on backlog in the second quarter of 2006, primarily due to the appreciation of the Euro.
The increases in bookings and backlog were primarily due to strong pump project business, including oil-related business in the Middle East, and robust global markets in general for the company's products.
Flowserve President and Chief Executive Officer Lewis M. Kling said, "We are very pleased with our bookings growth, which has risen sharply while we have exercised increased selectivity in pursuing customer business. In addition, our operational excellence programs have positioned us well to continue to meet our on-time delivery commitments to customers and take advantage of very strong market conditions. Our strong backlog, including the major projects, bodes well for the remainder of 2006 as well as 2007."
Source: Flowserve Corporation