Business Context and Reporting Period
Company: Flowserve Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: January 29, 2010
Reporting Period: Fourth quarter and full year ended December 31, 2009; Outlook for 2010.
Key Financial Metrics
This filing announces bookings for the fourth quarter and full year 2009 and reports backlog as of December 31, 2009. Specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity are not provided in this text; they are referenced in the attached press release (Exhibit 99.1).
- 2009 Earnings Per Share (EPS): Expected to be at or above the high end of the previously announced target range.
- 2010 EPS Guidance: A new target range was announced (specific figures not included in this text).
- Full Financial Results: Scheduled for announcement on February 24, 2010.
Material Changes and Organizational Restructuring
Effective January 1, 2010, the Company integrated the Flowserve Pump Division and the Flow Solutions Division into a new Flow Solutions Group (FSG). This reorganization creates a new customer-facing structure.
- New Segments: FSG is divided into two reportable segments: Engineered and Industrial.
- Reporting Impact: The 2009 reportable segments remain unchanged. Beginning in Q1 2010, the Company will report three segments: FSG Engineered, FSG Industrial, and the existing Flow Control Division.
- Leadership Changes: Tom Ferguson appointed Senior Vice President and President of FSG. Andy Beall (former President of Flow Solutions Division and CIO) announced retirement effective April 1, 2010.
Outlook, Risks, and Management Commentary
Management confirmed plans to release full 2009 financial results on February 24, 2010, with a conference call scheduled for February 25, 2010. The filing notes that the information provided under Item 2.02 is not deemed "filed" for purposes of Section 18 of the Exchange Act and is not subject to the liability of that section.
Investor Verification Checklist
- Verify the specific numerical values for 2009 bookings, backlog, and EPS in the attached Press Release (Exhibit 99.1).
- Confirm the specific 2010 EPS target range announced in the press release.
- Review the full Q4 and full-year 2009 financial results when released on February 24, 2010.
- Monitor the transition of financial reporting to the new three-segment structure starting in Q1 2010.