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Flowserve Corp, USA
COMPANY PROFILE
Flowserve Corp, USA Profile
Flowserve Corp manufactures precision-engineered flow control equipment including pumps, valves and seals for critical service applications primarily in the oil & gas, chemical processing, power generation, water treatment and general industrial markets. The company operates through three divisions: Flowserve Pump; Flow Control; and Flow Solutions. The Flowserve Pump Division (FPD) designs, manufactures, distributes and services engineered and industrial pumps and pump systems, submersible motors, replacement parts and related equipment. Flowserve’s pump systems and components are manufactured at 30 plants worldwide. The company also operates a global network of more than 150 Quick Response Centers (QRCs) which offer a range of aftermarket equipment services. Analysis
FPD bookings in 2008 increased by US$488.9 million, or 19.2%, on 2007 levels, including US$115.0 million in currency benefits. The growth came from EMA, North America and Asia Pacific, which increased US$251.1 million, US$109.3 million and US$109.2 million respectively. Bookings for original equipment and aftermarket increased 20% and 16%, respectively. Niigata added US$68.5 million to total bookings. The bookings increase also includes an US$85 million order to supply pumps to the Abu Dhabi Crude Oil Pipeline which are scheduled to ship in 2010. FPD’s 2008 sales increased by US$419.4 million, or 20.0%, driven by strong growth in the oil & gas and power markets. Along with currency benefits of US$67 million, the gains came from EMA, Asia Pacific and Latin America, which increased US$212.9 million, US$91.9 million and US$28.6 million, respectively. Original equipment sales were up by 22% and aftermarket sales by 17%. The sales gain also reflects increased throughput from capacity expansion and Niigata’s sales of US$87.0 million. Key Figures (US$ million) Flowserve Corp
COMMENT FPD ended 2008 with a backlog of US$2.3 billion and expects to ship 86% of those orders during 2009. The pump business continues to benefit from growth in enduser markets like oil & gas and power and so far this year has secured a number of major orders including the US$18.4 million series of orders from Petrobras in Brazil for vertical wet pit and vertical canned pumps (see Orders & Contracts, page 10). As a company, Flowserve is also strengthening its footing in high growth markets, having recently acquired Switzerland’s Calder AG, expanding the pump, valve and seal manufacturer’s range of products and technologies that it offers to the growing global desalination market (see Pump Industry Analyst, May 2009). ■
Year ended 31.12 2008
2007
2006
2005
2004
Sales Of Which: Flowserve Pump
4473.5
3762.7
3061.1
2695.3
2522.5
2414.8
2095.4
1617.7
–
–
Gross Profit
1580.3
1247.7
1007.3
870.6
763.2
Operating Income Of Which: Flowserve Pump
612.9
409.9
239.6
198.8
166.1
391.0
274.2
172.7
–
–
Net Earnings
442.4
255.8
115.0
17.1
27.1
5105.719
4318.7
3617.0
3022.3
2657.4
3040.3
2551.4
2110.9
–
–
2825.1
2276.6
1630.0
994.1
836.4
Bookings Of Which: Flowserve Pump Ending Backlog Contact Details
Flowserve Corp President & CEO, Flowserve Corp: President, Flowserve Pump Division: Address:
Lewis Kling Thomas Ferguson 5215 North O’Connor Boulevard Suite 2300, Irving Texas, 75039, USA
Web: www.flowserve.com
Recent Events
UÊ ÜÃiÀÛiÊ >`Ê ,Õà >`Ê ÀÕ«Ê «ii`Ê Ì iÊ >À}iÃÌÊ «Õ«Ê >Õv>VÌÕÀ}]Ê Ài«>ÀÊ >`Ê ÌiÃÌ}Ê v>VÌÞÊ Ê Ì iÊ ``iÊ >ÃÌÊ Ê ->Õ`Ê Arabia in March 2009 (see Pump Industry Analyst, March 2009). The facility is designed to support customers in the oil and gas, petrochemical, power, water, desalination, chemical and other industries. UÊ Ê«ÀÊÓää]ÊÜÃiÀÛiÊ>VµÕÀi`Ê«ÀÛ>ÌiÞÊÜi`Ê >`iÀÊ]Ê>Ê-ÜÃÃÊV«>Þ]ÊëiV>â}ÊÊÌ iÊ`iÃ}]Êi}iiÀ}Ê>`ÊÃÕ««ÞÊvÊiiÀ}ÞÀiVÛiÀÞÊ equipment and related proprietary technologies for the reverse osmosis process used in desalination plants (see Pump Industry Analyst, May 2009). UÊ ÜÃiÀÛiÊÃ}i`Ê>Ê£äÞi>ÀÊÃÌÀ>Ìi}VÊÃÕ««iÀÊ>}ÀiiiÌÊÜÌ Ê->Õ`ÊÀ>VÊ`ÕÀ}ÊÓään]ÊVÛiÀ}Ê«Õ«Ã]ÊÛ>ÛiÃ]ÊÃi>ÃÊ>`ÊÃiÀÛViÃÊvÀÊ use in the oil producer’s existing and planned facilities (see Pump Industry Analyst, November 2008). UÊ ÕÀ}ÊÓään]ÊÜÃiÀÛiÊ>VµÕÀi`ÊÌ iÊÀi>}Êxä¯ÊÌiÀiÃÌÊÊ }>Ì>Ê7ÀÌ }Ì]Ê>Ê>«>iÃiÊ>Õv>VÌÕÀiÀÊvÊ«Õ«ÃÊ>`ÊÌ iÀÊ rotating equipment for US$2.4 million in cash (see Pump Industry Analyst, April 2008).
June 2009
Pump Industry Analyst
5
Flowserve Corp, USA Profile
Flowserve Corp manufactures precision-engineered flow control equipment including pumps, valves and seals for critical service applications primarily in the oil & gas, chemical processing, power generation, water treatment and general industrial markets. The company operates through three divisions: Flowserve Pump; Flow Control; and Flow Solutions. The Flowserve Pump Division (FPD) designs, manufactures, distributes and services engineered and industrial pumps and pump systems, submersible motors, replacement parts and related equipment. Flowserve’s pump systems and components are manufactured at 30 plants worldwide. The company also operates a global network of more than 150 Quick Response Centers (QRCs) which offer a range of aftermarket equipment services. Analysis
FPD bookings in 2008 increased by US$488.9 million, or 19.2%, on 2007 levels, including US$115.0 million in currency benefits. The growth came from EMA, North America and Asia Pacific, which increased US$251.1 million, US$109.3 million and US$109.2 million respectively. Bookings for original equipment and aftermarket increased 20% and 16%, respectively. Niigata added US$68.5 million to total bookings. The bookings increase also includes an US$85 million order to supply pumps to the Abu Dhabi Crude Oil Pipeline which are scheduled to ship in 2010. FPD’s 2008 sales increased by US$419.4 million, or 20.0%, driven by strong growth in the oil & gas and power markets. Along with currency benefits of US$67 million, the gains came from EMA, Asia Pacific and Latin America, which increased US$212.9 million, US$91.9 million and US$28.6 million, respectively. Original equipment sales were up by 22% and aftermarket sales by 17%. The sales gain also reflects increased throughput from capacity expansion and Niigata’s sales of US$87.0 million. Key Figures (US$ million) Flowserve Corp
COMMENT FPD ended 2008 with a backlog of US$2.3 billion and expects to ship 86% of those orders during 2009. The pump business continues to benefit from growth in enduser markets like oil & gas and power and so far this year has secured a number of major orders including the US$18.4 million series of orders from Petrobras in Brazil for vertical wet pit and vertical canned pumps (see Orders & Contracts, page 10). As a company, Flowserve is also strengthening its footing in high growth markets, having recently acquired Switzerland’s Calder AG, expanding the pump, valve and seal manufacturer’s range of products and technologies that it offers to the growing global desalination market (see Pump Industry Analyst, May 2009). ■
Year ended 31.12 2008
2007
2006
2005
2004
Sales Of Which: Flowserve Pump
4473.5
3762.7
3061.1
2695.3
2522.5
2414.8
2095.4
1617.7
–
–
Gross Profit
1580.3
1247.7
1007.3
870.6
763.2
Operating Income Of Which: Flowserve Pump
612.9
409.9
239.6
198.8
166.1
391.0
274.2
172.7
–
–
Net Earnings
442.4
255.8
115.0
17.1
27.1
5105.719
4318.7
3617.0
3022.3
2657.4
3040.3
2551.4
2110.9
–
–
2825.1
2276.6
1630.0
994.1
836.4
Bookings Of Which: Flowserve Pump Ending Backlog Contact Details
Flowserve Corp President & CEO, Flowserve Corp: President, Flowserve Pump Division: Address:
Lewis Kling Thomas Ferguson 5215 North O’Connor Boulevard Suite 2300, Irving Texas, 75039, USA
Web: www.flowserve.com
Recent Events
UÊ ÜÃiÀÛiÊ >`Ê ,Õà >`Ê ÀÕ«Ê «ii`Ê Ì iÊ >À}iÃÌÊ «Õ«Ê >Õv>VÌÕÀ}]Ê Ài«>ÀÊ >`Ê ÌiÃÌ}Ê v>VÌÞÊ Ê Ì iÊ ``iÊ >ÃÌÊ Ê ->Õ`Ê Arabia in March 2009 (see Pump Industry Analyst, March 2009). The facility is designed to support customers in the oil and gas, petrochemical, power, water, desalination, chemical and other industries. UÊ Ê«ÀÊÓää]ÊÜÃiÀÛiÊ>VµÕÀi`Ê«ÀÛ>ÌiÞÊÜi`Ê >`iÀÊ]Ê>Ê-ÜÃÃÊV«>Þ]ÊëiV>â}ÊÊÌ iÊ`iÃ}]Êi}iiÀ}Ê>`ÊÃÕ««ÞÊvÊiiÀ}ÞÀiVÛiÀÞÊ equipment and related proprietary technologies for the reverse osmosis process used in desalination plants (see Pump Industry Analyst, May 2009). UÊ ÜÃiÀÛiÊÃ}i`Ê>Ê£äÞi>ÀÊÃÌÀ>Ìi}VÊÃÕ««iÀÊ>}ÀiiiÌÊÜÌ Ê->Õ`ÊÀ>VÊ`ÕÀ}ÊÓään]ÊVÛiÀ}Ê«Õ«Ã]ÊÛ>ÛiÃ]ÊÃi>ÃÊ>`ÊÃiÀÛViÃÊvÀÊ use in the oil producer’s existing and planned facilities (see Pump Industry Analyst, November 2008). UÊ ÕÀ}ÊÓään]ÊÜÃiÀÛiÊ>VµÕÀi`ÊÌ iÊÀi>}Êxä¯ÊÌiÀiÃÌÊÊ }>Ì>Ê7ÀÌ }Ì]Ê>Ê>«>iÃiÊ>Õv>VÌÕÀiÀÊvÊ«Õ«ÃÊ>`ÊÌ iÀÊ rotating equipment for US$2.4 million in cash (see Pump Industry Analyst, April 2008).
June 2009
Pump Industry Analyst
5