- \n
- Reported and Adjusted1<\/sup> Earnings Per Share (EPS) of 20 cents and 40 cents, respectively<\/b><\/li>\n<\/ul>\n
- \n
- Achieved fifth consecutive quarter of bookings above $1 billion with $1.06 billion delivered in the first quarter; driven by strong MRO and Aftermarket activity and combined with the continued success of the 3D strategy<\/b><\/li>\n<\/ul>\n
- \n
- Delivered strong revenue growth of 19.4%, generating adjusted operating margin of 8.3% with year-over-year incremental adjusted operating margins of 33.9%<\/b><\/li>\n<\/ul>\n
- \n
- Book-to-bill of 1.08x increased backlog by 2.6%, or $71 million, to $2.8 billion on a sequential basis<\/b><\/li>\n<\/ul>\n
- \n
- Velan acquisition is now expected to close early in the third quarter of 2023<\/b><\/li>\n<\/ul>\n
- \n
- Strong first quarter financial performance supports raising full year guidance range for Revenues and Adjusted EPS<\/b><\/li>\n<\/ul>\n
DALLAS–(BUSINESS WIRE<\/a>)–
\nFlowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, today announced its financial results for the first quarter ended March 31, 2023.<\/p>\nFirst Quarter 2023 Highlights<\/span><\/b> (all comparisons to the 2022 first quarter, unless otherwise noted)<\/p>\n
- \n
- \nReported Earnings Per Share (EPS) of $0.20 and Adjusted Earnings Per Share (EPS)1<\/sup> of $0.40<\/p>\n
- \n
- \nReported EPS includes a net after-tax adjusted loss of $25.9 million, comprised primarily of realignment charges and below-the-line foreign exchange impacts<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nTotal bookings were $1.06 billion, down 2.7%, or 0.5% on a constant currency basis<\/p>\n
- \n
- \nOriginal equipment bookings were $506.9 million, down 6.8% or 4.5% on a constant currency basis<\/p>\n<\/li>\n
- \nAftermarket bookings were $550.3 million, up 1.5%, or 3.5% on a constant currency basis<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nSales were $980.3 million, up 19.4%, or 22.3% on a constant currency basis<\/p>\n
- \n
- \nOriginal equipment sales were $463.5 million, up 21.0%, or 24.1% on a constant currency basis<\/p>\n<\/li>\n
- \nAftermarket sales were $516.8 million, up 18.0%, or 20.7% on a constant currency basis<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
- \nReported gross and operating margins were 30.3% and 5.8%, respectively<\/p>\n
- \n
- \nAdjusted gross and operating margins2<\/sup> were 30.4% and 8.3%, respectively<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n
\n\u201cWe delivered a very strong start to 2023, building on the momentum established in the fourth quarter of 2022,\u201d said Scott Rowe, Flowserve\u2019s president and chief executive officer. \u201cOur performance was supported by improved operational execution and healthy revenue growth which enabled us to achieve adjusted gross margins above 30%. Thanks to the continued commitment of our associates, both of our segments exceeded our previous revenue, margin and bookings expectations for the period, validating the process improvement actions implemented over the past year.\u201c<\/p>\n
\nRowe concluded, \u201cOur end markets remain supportive as demonstrated by our strong first quarter bookings, representing the fifth consecutive quarter of bookings over $1 billion. We are confident in our outlook as our project opportunity funnel continues to grow and our MRO and aftermarket business is at record levels. Looking ahead, our priorities are clear- improving execution, converting our $2.8 billion backlog, continuing to progress our 3D growth strategy (Diversify, Decarbonize, Digitize) and integrating the pending Velan transaction. We believe executing these actions will drive sustainable growth and value creation for all of our stakeholders.\u201d<\/p>\n
Revised 2023 Guidance<\/span><\/b>3<\/sup><\/p>\n
\nFlowserve is raising its Revenue and Adjusted EPS guidance metrics for 2023, as well as re-affirming certain other financial metrics, as shown in the table below:<\/p>\n
\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n Prior Target Range<\/span><\/b><\/p>\n<\/td>\n
\n Revised Target Range<\/span><\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \nRevenue Growth<\/p>\n<\/td>\n
\n \nUp 9.0% to 11.0%<\/p>\n<\/td>\n
\n \nUp 10.0% to 12.0%<\/p>\n<\/td>\n<\/tr>\n
\n \n \nReported Earnings Per Share<\/p>\n<\/td>\n
\n \n$1.40 – $1.65<\/p>\n<\/td>\n
\n \nRe-affirmed<\/p>\n<\/td>\n<\/tr>\n
\n \n \nAdjusted Earnings Per Share<\/p>\n<\/td>\n
\n \n$1.50 – $1.75<\/p>\n<\/td>\n
\n \n$1.65 – $1.85<\/p>\n<\/td>\n<\/tr>\n
\n \n \nNet Interest Expense<\/p>\n<\/td>\n
\n \n$55 – $60 million<\/p>\n<\/td>\n
\n \nRe-affirmed<\/p>\n<\/td>\n<\/tr>\n
\n \n \nAdjusted Tax Rate<\/p>\n<\/td>\n
\n \n18% – 20%<\/p>\n<\/td>\n
\n \nRe-affirmed<\/p>\n<\/td>\n<\/tr>\n
\n \n \nCapital Expenditures<\/p>\n<\/td>\n
\n \n$75 – $85 million<\/p>\n<\/td>\n
\n \nRe-affirmed<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\nThe outlook excludes any contribution from the previously announced pending acquisition of Velan Inc. Additionally, Flowserve\u2019s 2023 Adjusted EPS target range also excludes expected adjusted items including realignment charges of approximately $25 million, as well as the potential impact of below-the-line foreign currency effects and certain other discrete items which may arise during the course of the year.<\/p>\n
\nFirst Quarter 2023 Results Conference Call<\/span><\/b><\/p>\n
\nFlowserve will host its conference call with the financial community on Tuesday, May 2nd<\/sup> at 11:00 AM Eastern. Scott Rowe, president and chief executive officer, as well as other members of the management team will be presenting. The call can be accessed by shareholders and other interested parties at www.flowserve.com<\/a> under the \u201cInvestor Relations\u201d section.<\/p>\n
\n
\n \n 1<\/sup> See Reconciliation of Non-GAAP Measures table for detailed reconciliation of reported results to adjusted measures.<\/p>\n<\/td>\n<\/tr>\n
\n \n 2<\/sup> Adjusted gross and operating margins are calculated by dividing adjusted gross profit and adjusted operating income, respectively, by revenues. Adjusted gross profit and adjusted operating income are derived by excluding the adjusted items. See reconciliation of Non-GAAP Measures table for detailed reconciliation.<\/p>\n<\/td>\n<\/tr>\n
\n \n 3<\/sup> Adjusted 2023 EPS excludes realignment expenses, the impact from other specific discrete items (including planned Velan acquisition) and below-the-line foreign currency effects and utilizes current FX rates and approximately 131.8 million fully diluted shares.<\/p>\n<\/td>\n<\/tr>\n
\n \n \n_ FX impact is calculated by comparing the difference between the actual average FX rates of 2023 and the year-end 2022 spot rates both as applied to our 2023 expectations, divided by the number of shares expected for 2023.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
About Flowserve<\/b><\/p>\n
\n
\n CONDENSED CONSOLIDATED STATEMENTS OF INCOME<\/b><\/td>\n \n \n <\/tr>\n \n (Unaudited)<\/b><\/td>\n \n \n <\/tr>\n \n \n Three Months Ended March 31,<\/b><\/td>\n<\/tr>\n \n (Amounts in thousands, except per share data)<\/td>\n \n 2023<\/b><\/p>\n<\/td>\n
\n \n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Sales<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n980,305<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n821,058<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Cost of sales<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(683,475<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(611,411<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Gross profit<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n296,830<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n209,647<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Selling, general and administrative expense<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(244,268<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(206,138<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Net earnings from affiliates<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n4,624<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n3,858<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Operating income<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n57,186<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n7,367<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Interest expense<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(16,211<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(10,693<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Interest income<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,494<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n943<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Other income (expense), net<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(8,020<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(8,114<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Earnings (loss) before income taxes<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n34,449<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(10,497<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Provision for income taxes<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(4,453<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(3,182<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Net earnings (loss), including noncontrolling interests<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n29,996<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(13,679<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Less: Net earnings attributable to noncontrolling interests<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(3,230<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(2,141<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Net earnings (loss) attributable to Flowserve Corporation<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n26,766<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n(15,820<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Net earnings (loss) per share attributable to Flowserve Corporation common shareholders:<\/td>\n \n \n <\/tr>\n \n Basic<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n0.20<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n(0.12<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Diluted<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n0.20<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(0.12<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Weighted average shares \u2013 basic<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n130,930<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n130,410<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Weighted average shares \u2013 diluted<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n131,754<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n130,410<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\n\n
\n RECONCILIATION OF NON-GAAP MEASURES<\/b><\/td>\n \n \n \n \n \n \n <\/tr>\n \n (Unaudited)<\/b><\/td>\n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Three Months Ended March 31, 2023<\/b><\/td>\n<\/tr>\n \n (Amounts in thousands, except per share data)<\/td>\n As Reported (a)<\/b><\/td>\n \n Realignment (1)<\/b><\/td>\n \n Other Items<\/b><\/td>\n \n As Adjusted<\/b><\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Sales<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n980,305<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n980,305<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Gross profit<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n296,830<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(202<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(1,173<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n(3)<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n298,205<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Gross margin<\/i><\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n 30.3<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n –<\/i><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n –<\/i><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n 30.4<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Selling, general and administrative expense<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(244,268<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(16,677<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(6,013<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n(4)<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(221,578<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Net earnings from affiliates<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n4,624<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n4,624<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Operating income<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n57,186<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(16,879<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(7,186<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n81,251<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Operating income as a percentage of sales<\/i><\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n 5.8<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n –<\/i><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n –<\/i><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n 8.3<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Interest and other expense, net<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(22,737<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(7,406<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n(5)<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(15,331<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Earnings before income taxes<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n34,449<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(16,879<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(14,592<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n65,920<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Provision for income taxes<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(4,453<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n3,184<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(2)<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n2,409<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(6)<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(10,046<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Tax Rate<\/i><\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n 12.9<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n 18.9<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n 16.5<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n 15.2<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Net earnings attributable to Flowserve Corporation<\/b><\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n 26,766<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n (13,695<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n (12,183<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n 52,644<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Net earnings per share attributable to Flowserve Corporation common shareholders:<\/td>\n \n \n \n \n \n \n <\/tr>\n \n Basic<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n0.20<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n(0.10<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n(0.10<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n0.40<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Diluted<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n0.20<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(0.10<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(0.10<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n0.40<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Basic number of shares used for calculation<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n130,930<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n130,930<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n130,930<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n130,930<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Diluted number of shares used for calculation<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n131,754<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n131,754<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n131,754<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n131,754<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n (a) Reported in conformity with U.S. GAAP<\/td>\n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Notes:<\/span><\/b><\/td>\n \n \n \n \n \n \n <\/tr>\n \n (1) Represents realignment adjustments incurred as a result of realignment programs<\/td>\n<\/tr>\n \n (2) Includes tax impact of items above<\/td>\n<\/tr>\n \n (3) Represents $1.2 million of discrete asset write-downs<\/td>\n<\/tr>\n \n (4) Represents $3.1 million of costs associated with the pending acquisition of Velan Inc. and $2.9 million of discrete asset write-downs<\/td>\n<\/tr>\n \n (5) Represents below-the-line foreign exchange impacts<\/td>\n<\/tr>\n \n (6) Includes tax impact of items above<\/td>\n<\/tr>\n<\/table>\n\n \n
\n RECONCILIATION OF NON-GAAP MEASURES<\/b><\/td>\n \n \n \n \n \n \n <\/tr>\n \n (Unaudited)<\/b><\/td>\n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Three Months Ended March 31, 2022<\/b><\/td>\n<\/tr>\n \n (Amounts in thousands, except per share data)<\/td>\n As Reported (a)<\/b><\/td>\n \n Realignment (1)<\/b><\/td>\n \n Other Items<\/b><\/td>\n \n As Adjusted<\/b><\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Sales<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n821,058<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n821,058<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Gross profit<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n209,647<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n198<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(10,053<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n(3)<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n219,502<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Gross margin<\/i><\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n 25.5<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n –<\/i><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n –<\/i><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n 26.7<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Selling, general and administrative expense<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(206,138<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n201<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(10,193<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n(3)<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(196,146<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Net earnings from affiliates<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n3,858<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n3,858<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Operating income<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n7,367<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n399<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(20,246<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n27,214<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Operating income as a percentage of sales<\/i><\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n 0.9<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n –<\/i><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n –<\/i><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n 3.3<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Interest and other expense, net<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(17,864<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(5,694<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n(4)<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(12,170<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Earnings (loss) before income taxes<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(10,497<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n399<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(25,940<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n15,044<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n (Provision for) benefit from income taxes<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(3,182<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(74<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n(2)<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n234<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(5)<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(3,342<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Tax Rate<\/i><\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n -30.3<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n 18.5<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n 0.9<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n 22.2<\/i><\/p>\n<\/td>\n
\n %<\/i><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Net earnings (loss) attributable to Flowserve Corporation<\/b><\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n (15,820<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n 325<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n (25,706<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n 9,561<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Net earnings (loss) per share attributable to Flowserve Corporation common shareholders:<\/td>\n \n \n \n \n \n \n <\/tr>\n \n Basic<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n(0.12<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n(0.19<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n0.07<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Diluted<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(0.12<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(0.19<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n0.07<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Basic number of shares used for calculation<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n130,410<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n130,410<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n130,410<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n130,410<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Diluted number of shares used for calculation<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n130,410<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n131,051<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n131,051<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n131,051<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n (a) Reported in conformity with U.S. GAAP<\/td>\n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Notes:<\/span><\/b><\/td>\n \n \n \n \n \n \n <\/tr>\n \n (1) Represents realignment adjustments incurred as a result of realignment programs<\/td>\n<\/tr>\n \n (2) Includes tax impact of items above<\/td>\n<\/tr>\n \n (3) Represents the reserve of Russia related financial exposures. The impact of $5.4 million of previously recognized revenue and estimated cancellation fees on open contracts that were previously accounted for under POC and subsequently canceled have been reflected in the above adjustment to gross profit<\/td>\n<\/tr>\n \n (4) Represents below-the-line foreign exchange impacts<\/td>\n<\/tr>\n \n (5) Includes tax impact of items above<\/td>\n<\/tr>\n<\/table>\n\n \n
\n SEGMENT INFORMATION<\/b><\/td>\n \n \n <\/tr>\n \n (Unaudited)<\/b><\/td>\n \n \n <\/tr>\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n FLOWSERVE PUMP DIVISION<\/b><\/td>\n \n Three Months Ended March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n
\n (Amounts in millions, except percentages)<\/td>\n \n 2023<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n
\n Bookings<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n728.5<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n795.6<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Sales<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n700.1<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n575.6<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Gross profit<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n221.4<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n156.9<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Gross profit margin<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n31.6<\/p>\n<\/td>\n
\n \n%<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n27.3<\/p>\n<\/td>\n
\n \n%<\/p>\n<\/td>\n<\/tr>\n
\n SG&A<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n147.0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n139.8<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Segment operating income<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n79.1<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n21.0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Segment operating income as a percentage of sales<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n11.3<\/p>\n<\/td>\n
\n \n%<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n3.6<\/p>\n<\/td>\n
\n \n%<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \u00a0<\/td>\n<\/tr>\n \n FLOW CONTROL DIVISION<\/b><\/td>\n \n Three Months Ended March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n
\n (Amounts in millions, except percentages)<\/td>\n \n 2023<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n
\n Bookings<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n332.0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n294.3<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Sales<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n281.6<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n247.9<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Gross profit<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n80.3<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n59.5<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Gross profit margin<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n28.5<\/p>\n<\/td>\n
\n \n%<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n24.0<\/p>\n<\/td>\n
\n \n%<\/p>\n<\/td>\n<\/tr>\n
\n SG&A<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n61.8<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n44.3<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Segment operating income<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n18.5<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n15.2<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Segment operating income as a percentage of sales<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n6.6<\/p>\n<\/td>\n
\n \n%<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n6.1<\/p>\n<\/td>\n
\n \n%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\n\n
\n First Quarter – Segment Results<\/b><\/td>\n<\/tr>\n \n (dollars in millions, comparison vs. 2022 first quarter, unaudited)<\/td>\n<\/tr>\n \n \n \n \u00a0<\/td>\n \u00a0<\/td>\n<\/tr>\n \n \n FPD<\/td>\n \u00a0<\/td>\n FCD<\/td>\n<\/tr>\n \n \n 1st Qtr<\/td>\n \u00a0<\/td>\n 1st Qtr<\/td>\n<\/tr>\n \n Bookings<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n728.5<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n332.0<\/p>\n<\/td>\n<\/tr>\n
\n – vs. prior year<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n-8.4%<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n12.8%<\/p>\n<\/td>\n<\/tr>\n
\n – on constant currency<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n-6.6%<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n15.7%<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \u00a0<\/td>\n \u00a0<\/td>\n<\/tr>\n \n Sales<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n700.1<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n281.6<\/p>\n<\/td>\n<\/tr>\n
\n – vs. prior year<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n21.6%<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n13.6%<\/p>\n<\/td>\n<\/tr>\n
\n – on constant currency<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n24.4%<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n16.7%<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \u00a0<\/td>\n \u00a0<\/td>\n<\/tr>\n \n Gross Profit<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n221.4<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n80.3<\/p>\n<\/td>\n<\/tr>\n
\n – vs. prior year<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n41.1%<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n35.0%<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \u00a0<\/td>\n \u00a0<\/td>\n<\/tr>\n \n Gross Margin (% of sales)<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n31.6%<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n28.5%<\/p>\n<\/td>\n<\/tr>\n
\n – vs. prior year (in basis points)<\/td>\n 430 bps<\/td>\n \u00a0<\/td>\n 450 bps<\/td>\n<\/tr>\n \n \n \n \u00a0<\/td>\n \u00a0<\/td>\n<\/tr>\n \n Operating Income<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n79.1<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n18.5<\/p>\n<\/td>\n<\/tr>\n
\n – vs. prior year<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n276.7%<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n21.7%<\/p>\n<\/td>\n<\/tr>\n
\n – on constant currency<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n306.1%<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n27.0%<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \u00a0<\/td>\n \u00a0<\/td>\n<\/tr>\n \n Operating Margin (% of sales)<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n11.3%<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n6.6%<\/p>\n<\/td>\n<\/tr>\n
\n – vs. prior year (in basis points)<\/td>\n 770 bps<\/td>\n \u00a0<\/td>\n 50 bps<\/td>\n<\/tr>\n \n \n \n \u00a0<\/td>\n \u00a0<\/td>\n<\/tr>\n \n Adjusted Operating Income *<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n85.6<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n30.5<\/p>\n<\/td>\n<\/tr>\n
\n – vs. prior year<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n119.5%<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n75.3%<\/p>\n<\/td>\n<\/tr>\n
\n – on constant currency<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n135.4%<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n79.8%<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \u00a0<\/td>\n \u00a0<\/td>\n<\/tr>\n \n Adj. Oper. Margin (% of sales)*<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n12.2%<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n10.8%<\/p>\n<\/td>\n<\/tr>\n
\n – vs. prior year (in basis points)<\/td>\n 540 bps<\/td>\n \u00a0<\/td>\n 380 bps<\/td>\n<\/tr>\n \n \n \n \u00a0<\/td>\n \u00a0<\/td>\n<\/tr>\n \n Backlog<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n2,028.5<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n795.1<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \u00a0<\/td>\n \u00a0<\/td>\n<\/tr>\n \n * Adjusted Operating Income and Adjusted Operating Margin exclude realignment charges<\/td>\n<\/tr>\n<\/table>\n\n \n
\n CONDENSED CONSOLIDATED BALANCE SHEETS<\/b><\/td>\n \n \n <\/tr>\n \n (Unaudited)<\/b><\/td>\n \n \n <\/tr>\n \n \n \n March 31,<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n December 31,<\/b><\/p>\n<\/td>\n<\/tr>\n
\n (Amounts in thousands, except par value)<\/td>\n \n 2023<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \u00a0<\/td>\n<\/tr>\n \n ASSETS<\/b><\/td>\n \n \n <\/tr>\n \n Current assets:<\/td>\n \n \n <\/tr>\n \n Cash and cash equivalents<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n404,726<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n434,971<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Accounts receivable, net of allowance for expected credit losses of $82,517 and $83,062, respectively<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n904,184<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n868,632<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Contract assets, net of allowance for expected credit losses of $5,589 and $5,819, respectively<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n231,864<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n233,457<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Inventories, net<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n882,252<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n803,198<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Prepaid expenses and other<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n119,209<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n110,714<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Total current assets<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n2,542,235<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n2,450,972<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Property, plant and equipment, net of accumulated depreciation of $1,183,972 and $1,172,957, respectively<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n496,434<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n500,945<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Operating lease right-of-use assets, net<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n168,682<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n174,980<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Goodwill<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,173,718<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,168,124<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Deferred taxes<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n151,852<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n149,290<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Other intangible assets, net<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n128,258<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n134,503<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Other assets, net of allowance for expected credit losses of $65,575 and $66,377, respectively<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n214,570<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n211,820<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Total assets<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n4,875,749<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n4,790,634<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \u00a0<\/td>\n<\/tr>\n \n LIABILITIES AND EQUITY<\/b><\/td>\n \n \n <\/tr>\n \n Current liabilities:<\/td>\n \n \n <\/tr>\n \n Accounts payable<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n488,761<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n476,747<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Accrued liabilities<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n455,309<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n427,578<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Contract liabilities<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n291,638<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n256,963<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Debt due within one year<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n53,387<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n49,335<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Operating lease liabilities<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n32,626<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n32,528<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Total current liabilities<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,321,721<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,243,151<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Long-term debt due after one year<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,209,169<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,224,151<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Operating lease liabilities<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n150,536<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n155,196<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Retirement obligations and other liabilities<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n314,626<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n309,529<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Shareholders\u2019 equity:<\/td>\n \n \n <\/tr>\n \n Common shares, $1.25 par value<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n220,991<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n220,991<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Shares authorized \u2013 305,000<\/td>\n \n \n <\/tr>\n \n Shares issued \u2013 176,793 and 176,793, respectively<\/td>\n \n \n <\/tr>\n \n Capital in excess of par value<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n492,147<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n507,484<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Retained earnings<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n3,774,379<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n3,774,209<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Treasury shares, at cost \u2013 45,922 and 46,359 shares, respectively<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(2,016,517<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(2,036,882<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Deferred compensation obligation<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n6,852<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n6,979<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Accumulated other comprehensive loss<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(631,534<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(647,788<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Total Flowserve Corporation shareholders’ equity<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,846,318<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,824,993<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Noncontrolling interests<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n33,379<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n33,614<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Total equity<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,879,697<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,858,607<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Total liabilities and equity<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n4,875,749<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n4,790,634<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\n\n
\n CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS<\/b><\/td>\n \n \n <\/tr>\n \n (Unaudited)<\/b><\/td>\n \n \n <\/tr>\n \n \n Three Months Ended March 31,<\/b><\/td>\n<\/tr>\n \n (Amounts in thousands)<\/td>\n \n 2023<\/b><\/p>\n<\/td>\n
\n \n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Cash flows \u2013 Operating activities:<\/b><\/td>\n \n \n <\/tr>\n \n Net earnings (loss), including noncontrolling interests<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n29,996<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n(13,679<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Adjustments to reconcile net earnings (loss) to net cash provided (used) by operating activities:<\/td>\n \n \n <\/tr>\n \n Depreciation<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n18,928<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n20,148<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Amortization of intangible and other assets<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n2,663<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n3,396<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Stock-based compensation<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n9,953<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n11,011<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Foreign currency, asset write downs and other non-cash adjustments<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(2,728<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n6,893<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Change in assets and liabilities:<\/td>\n \n \n <\/tr>\n \n Accounts receivable, net<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(26,249<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n5,039<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Inventories, net<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(70,721<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(48,715<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Contract assets, net<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n4,325<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(5,655<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Prepaid expenses and other assets, net<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(16,019<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(33,197<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Accounts payable<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n7,008<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n8,204<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Contract liabilities<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n32,676<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n2,600<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Accrued liabilities and income taxes payable<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n35,374<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n7,302<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Retirement obligations and other<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n9,477<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n10,912<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Net deferred taxes<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(8,095<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(1,032<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Net cash flows provided (used) by operating activities<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n26,588<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(26,773<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Cash flows \u2013 Investing activities:<\/b><\/td>\n \n \n <\/tr>\n \n Capital expenditures<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(15,318<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(14,052<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Other<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(1,138<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,834<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Net cash flows provided (used) by investing activities<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(16,456<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(12,218<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Cash flows \u2013 Financing activities:<\/b><\/td>\n \n \n <\/tr>\n \n Payments on term loan<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(10,000<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(7,593<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Proceeds under other financing arrangements<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n78<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n555<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Payments under other financing arrangements<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(1,515<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(484<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Payments related to tax withholding for stock-based compensation<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(5,850<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(4,304<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Payments of dividends<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(26,229<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(26,128<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Other<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(303<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(437<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Net cash flows provided (used) by financing activities<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(43,819<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(38,391<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Effect of exchange rate changes on cash<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n3,442<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(5,275<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Net change in cash and cash equivalents<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(30,245<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(82,657<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Cash and cash equivalents at beginning of period<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n434,971<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n658,452<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Cash and cash equivalents at end of period<\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n404,726<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n575,795<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\n\u00a0<\/p>\n
<\/p>\n
View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20230501005619\/en\/<\/a><\/span><\/p>\n
\nJay Roueche, Vice President, Investor Relations & Treasurer
\n
(972) 443-6560<\/p>\n\nMike Mullin, Director, Investor Relations
\n
(214) 697-8568<\/p>\nKEYWORDS:<\/b> Texas United States North America<\/p>\n
INDUSTRY KEYWORDS:<\/b> Engineering Other Energy Oil\/Gas Manufacturing Energy Other Manufacturing<\/p>\n
- \nAdjusted gross and operating margins2<\/sup> were 30.4% and 8.3%, respectively<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n
- \nReported Earnings Per Share (EPS) of $0.20 and Adjusted Earnings Per Share (EPS)1<\/sup> of $0.40<\/p>\n
- Strong first quarter financial performance supports raising full year guidance range for Revenues and Adjusted EPS<\/b><\/li>\n<\/ul>\n
- Velan acquisition is now expected to close early in the third quarter of 2023<\/b><\/li>\n<\/ul>\n
- Book-to-bill of 1.08x increased backlog by 2.6%, or $71 million, to $2.8 billion on a sequential basis<\/b><\/li>\n<\/ul>\n
- Delivered strong revenue growth of 19.4%, generating adjusted operating margin of 8.3% with year-over-year incremental adjusted operating margins of 33.9%<\/b><\/li>\n<\/ul>\n
- Achieved fifth consecutive quarter of bookings above $1 billion with $1.06 billion delivered in the first quarter; driven by strong MRO and Aftermarket activity and combined with the continued success of the 3D strategy<\/b><\/li>\n<\/ul>\n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20230501005619\/en\/1779550\/3\/Flowserve_Logo_Official.jpg\"){kind=logo}
<\/td>\n<\/tr>\n