Flowserve (FLS) Q4 2010 earnings summary

Executive summary

• 2010 delivered positive business results and shareholder returns amid significant changes and challenges; priorities included disciplined profitable growth, customer intimacy, operational excellence and strategic localization.

• Global workforce of 15,000 across more than 50 countries supported flow-control products, systems and aftermarket services.

Financial highlights

• 2010 sales were $4,032 million, versus $4,365 million in 2009; gross profit was $1,409 million, versus $1,548 million.

• Operating income was $581.4 million, versus $629.5 million in 2009; diluted EPS from continuing operations was $6.88, versus $7.59.

• Bookings were $4,228 million, compared with $3,885 million in 2009.

Outlook and guidance

• 2011 focus: execute Operational Excellence and other strategies, improve quality, on-time delivery and competitive pricing, and leverage the optimized operating platform and product offerings.

• Management expressed confidence in the business’s prospects, citing balance-sheet strength and employee capabilities as supports for disciplined, profitable growth.