Latest news with #Rowe
Fox News
5 hours ago
- Politics
- Fox News
The untapped potential AI can't replace in underserved communities like mine
The crime of post-60s liberalism is that it created permanent Black underclasses all over America, including on the South Side of Chicago where I live. The schools here are poor. Opportunities have been replaced by government handouts. Violence robs far too many families of their loved ones. Yet, there is much untapped potential in these underclasses. I thought about them as I listened to Mike Rowe of "Dirty Jobs" detail the need for hundreds of thousands of tradesmen and women recently at the Pennsylvania Energy & Innovation Summit. He began by saying, "We've been telling kids for 15 years to learn to code." I, too, have been told to pursue that as a means of opportunity for my youth. But I always believed in the power of the trades. Rowe pointed out how the advent of AI has decimated many coding jobs but has not come after "the welders, the plumbers, the steamfitters, the pipefitters, the HVAC, or the electricians." AI cannot do manual labor. For the last 20 or so, our nation has emphasized the college degree above everything, including vocational training. In my opinion, this has been disastrous. In my community, there are still those who look down at the prospect of working with their hands. They believe the college degree is their ticket. Maybe it is, but my point here is that work done by our hands should not be looked down upon in our culture. It's honest work. Rowe said that he heard Larry Fink, Chairman and CEO of BlackRock, say in Aspen that "we need 500,000 electricians in the next couple of years — not hyperbole." My non-profit has provided training in the electrician field to many individuals, including a Chicago Police officer who eventually left the force to work full time in her new field. He said the over 80,000 collision repair technicians would be needed. Over 140,000 tradespeople are needed to help companies build and deliver nuclear-powered submarines to the Navy. And for the energy field, 300,000 to 500,000 people will be needed. AI can't do any of this work. But I know people from the South Side and similar neighborhoods across America who can. We need to train these people and put them to work. They may be living in poverty and they may not have received the best education. But many of them are hungry to improve their lives. That is why our nation must reverse the decline of post-60s liberalism by giving these people direct pathways to opportunity. If one should fail or act detrimentally, then dismiss that person and let him or her be an example to others of what happens when one doesn't fully commit. We are a nation in a crisis. If we don't reverse the fortunes of my neighborhood and others like it, then when? The Golden Age for many Americans lies in the pursuit of a livelihood in the trades.
Business Wire
9 hours ago
- Business
- Business Wire
Flowserve Corporation Terminates Merger with Chart Industries
DALLAS--(BUSINESS WIRE)--Flowserve Corporation (NYSE: FLS) ('Flowserve'), a leading provider of flow control products and services for the global infrastructure markets, today announced it has terminated its previously announced merger agreement for Flowserve to combine with Chart Industries, Inc. (NYSE: GTLS) ('Chart'). The termination follows the Flowserve Board of Directors' decision not to submit a revised offer to merge with Chart, after being notified that Chart's Board of Directors had determined that a recent unsolicited acquisition proposal from Baker Hughes (NASDAQ: BKR) constituted a 'superior proposal' under the terms of the merger agreement. In accordance with the terms of the merger agreement, Flowserve will receive a $266 million termination payment. 'Flowserve is executing from a position of clear strength, driven by sustained financial momentum, impressive operational performance, and continued robust global demand for our mission-critical flow control solutions across the industrial spectrum,' said Scott Rowe, Flowserve's President and Chief Executive Officer. 'The decision not to pursue a revised offer for Chart demonstrates our commitment to financial discipline, as well as our confidence in the growth prospects of our standalone business. Our results reflect the successful execution of our 3D growth strategy—Diversify, Decarbonize, and Digitize—while the Flowserve Business System continues to enhance productivity, expand margins, accelerate decision-making, and unlock long-term value.' Rowe continued, 'We are generating strong free cash flow and delivering tangible progress across all business segments, positioning us to invest in innovation and strategic initiatives that support both our customers' evolving needs and global sustainability trends. Backed by a resilient business model and an aligned, high-performing organization, we are confident in our ability to deliver sustained, profitable growth, generate superior returns, and create long-term value for shareholders.' In a separate press release issued today, the Company announced its financial results for the second quarter ended June 30, 2025. Flowserve will host its conference call to discuss second quarter results on Wednesday, July 30, at 11:00 a.m. Eastern Time. The call can be accessed by shareholders and other interested parties on Flowserve's Investors page. About Flowserve Flowserve Corporation is one of the world's leading providers of fluid motion and control products and services. Operating in more than 50 countries, the Company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the Company's website at Safe Harbor Statement: This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition. The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: global supply chain disruptions and the current inflationary environment could adversely affect the efficiency of our manufacturing and increase the cost of providing our products to customers; a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in global economic conditions and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers' ability to make required capital investment and maintenance expenditures; if we are not able to successfully execute and realize the expected financial benefits from any restructuring and realignment initiatives, our business could be adversely affected; the substantial dependence of our sales on the success of the energy, chemical, power generation and general industries; the adverse impact of volatile raw materials prices on our products and operating margins; economic, political and other risks associated with our international operations, including military actions, trade embargoes, epidemics or pandemics and changes to tariffs or trade agreements that could affect customer markets, particularly North African, Latin American, Asian and Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; the impact of public health emergencies, such as outbreaks of epidemics, pandemics, and contagious diseases, on our business and operations; increased aging and slower collection of receivables, particularly in Latin America and other emerging markets; potential adverse effects resulting from the implementation of new tariffs and related retaliatory actions and changes to or uncertainties related to tariffs and trade agreements; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Argentina; potential adverse consequences resulting from litigation to which we are a party, such as litigation involving asbestos-containing material claims; expectations regarding acquisitions and the integration of acquired businesses; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; if we are not able to maintain our competitive position by successfully developing and introducing new products and integrate new technologies, including artificial intelligence and machine learning; environmental compliance costs and liabilities; potential work stoppages and other labor matters; access to public and private sources of debt financing; our inability to protect our intellectual property in the United States, as well as in foreign countries; obligations under our defined benefit pension plans; our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud; the recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could affect our operating results; our information technology infrastructure could be subject to service interruptions, data corruption, cyber-based attacks or network security breaches, which could disrupt our business operations and result in the loss of critical and confidential information; ineffective internal controls could impact the accuracy and timely reporting of our business and financial results; and other factors described from time to time in our filings with the Securities and Exchange Commission. All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement. The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company's performance. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company's reported results prepared in accordance with GAAP.
Business Wire
9 hours ago
- Business
- Business Wire
Flowserve Corporation Reports Second Quarter 2025 Results
DALLAS--(BUSINESS WIRE)--Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, reported its financial results for the second quarter ended June 30, 2025. Highlights: Solid bookings of $1.1 billion, including $621 million of durable aftermarket bookings Robust gross margin and adjusted 1 gross margin 2 of 34.2% and 34.9%, respectively, both increased 260 basis points versus the prior year period Operating margin and adjusted operating margin 3 of 12.3% and 14.6%, respectively, expanded 180 and 210 basis points compared to last year Reported and Adjusted Earnings Per Share (EPS) 4 of 62 and 91 cents, respectively. Reported EPS includes adjusted items of 29 cents, comprised of below-the-line foreign exchange and merger transaction costs among other items Strong cash from operations of $154 million driven by enhanced earnings generation Increased full-year 2025 Adjusted EPS guidance from $3.10-$3.30 to $3.25-$3.40, an increase of more than 25% at the midpoint of the range versus last year Management Commentary: 'Our strong second quarter results reflect the successful ongoing execution of our 3D strategy and the Flowserve Business System. We delivered another quarter of sales and earnings growth while also expanding margins, reflecting the resilience of our business model and progress on our operating initiatives. With the Flowserve Business System firmly established across the organization, we recently went live with our commercial excellence pillar to complement our 80/20 program and drive outsized growth, leveraging the optimized portfolio and delivering the best value to our customers,' said Scott Rowe, Flowserve's President and Chief Executive Officer. Rowe continued, 'We are encouraged by our momentum through the first half of the year and remain confident in our ability to execute at a high level in any business environment. With our strong performance year-to-date combined with confidence in our outlook, we have increased our full-year adjusted EPS guidance. We are well positioned to deliver on our 2027 long-term targets and create value for our shareholders and stakeholders.' Merger with Chart Industries, Inc. In a separate press release issued today, Flowserve announced it has terminated its previously announced merger agreement to combine with Chart Industries, Inc. (NYSE: GTLS) ('Chart'). The termination follows the Flowserve Board of Directors' decision not to submit a revised offer to merge with Chart, after being notified that Chart's Board of Directors had determined that a recent unsolicited acquisition proposal from Baker Hughes (NASDAQ: BKR) constituted a 'superior proposal' under the terms of the merger agreement. In accordance with the terms of the merger agreement, Flowserve will receive a $266 million termination payment. Key Figures: (dollars in millions, except per share) 2025 Q2 2024 Q2 Change YTD 2025 YTD 2024 Change Backlog $2,853.2 $2,684.4 6.3% $2,853.2 $2,684.4 6.3% Bookings $1,073.9 $1,246.1 (13.8%) $2,299.4 $2,283.8 0.7% Original Equipment $453.3 $632.1 (28.3%) $990.2 $1,094.1 (9.5%) Aftermarket $620.6 $614.0 1.1% $1,309.2 $1,189.7 10.0% Sales 5 $1,188.1 $1,156.9 2.7% $2,332.6 $2,244.4 3.9% Organic (100) bps 150 bps Acquisitions 260 bps 290 bps Foreign Exchange 110 bps (50) bps Operating Margin 12.3% 10.5% 180 bps 11.9% 10.4% 150 bps Adjusted Operating Margin 14.6% 12.5% 210 bps 13.8% 11.7% 210 bps Earnings Per Share $0.62 $0.55 12.7% $1.18 $1.11 6.3% Adjusted Earnings Per Share $0.91 $0.73 24.7% $1.63 $1.31 24.4% Cash From Operations $154.1 ($12.8) $166.9 $104.2 $49.5 $54.7 Expand 2025 Guidance: The Company updated its full-year 2025 guidance, including increasing its Adjusted EPS target range. 2025 Adjusted EPS guidance reflects the updated net impact of tariffs and excludes any impact from the Company's annual assessment of actuarial-determined asbestos liabilities, which is typically performed in the third quarter. Webcast and Conference Call Instructions: Flowserve will host its conference call to discuss second quarter results on Wednesday, July 30, at 11:00 a.m. Eastern Time. The call can be accessed by shareholders and other interested parties on Flowserve's Investors page. Footnotes (pages 1-2) 1 See Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited) and Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (unaudited) tables for a detailed reconciliation of reported results to adjusted measures. 2 Adjusted gross margin is calculated by dividing adjusted gross profit by sales. Adjusted gross profit is derived by excluding the adjusted items. 3 Adjusted operating margin is calculated by dividing adjusted operating income by sales. Adjusted operating income is derived by excluding the adjusted items. 4 Adjusted 2025 EPS excludes potential realignment expenses, below-the-line foreign currency effects, actuarial-determined assessments of certain long-term liabilities and certain other discrete items which may arise during the year and utilizes foreign exchange rates of the prior 30-day period and approximately 132 million fully diluted shares. 5 Organic is defined as the change in Sales, as defined by U.S. GAAP, excluding the impacts of currency translation and acquisitions. The impact of currency translation is calculated by translating current year results on a monthly basis at prior year exchange rates for the same period. Expand (Unaudited) Three Months Ended June 30, (Amounts in thousands, except per share data) 2025 2024 Sales $ 1,188,092 $ 1,156,892 Cost of sales (781,510 ) (790,796 ) Gross profit 406,582 366,096 Selling, general and administrative expense (265,908 ) (238,627 ) Loss on sale of business - (12,981 ) Net earnings from affiliates 5,916 6,816 Operating income 146,590 121,304 Interest expense (20,253 ) (16,917 ) Interest income 2,526 1,174 Other expense, net (25,003 ) (5,263 ) Earnings before income taxes 103,860 100,298 Provision for income taxes (15,636 ) (23,846 ) Net earnings, including noncontrolling interests 88,224 76,452 Less: Net earnings attributable to noncontrolling interests (6,470 ) (3,836 ) Net earnings attributable to Flowserve Corporation $ 81,754 $ 72,616 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 0.62 $ 0.55 Diluted 0.62 0.55 Weighted average shares – basic 130,846 131,656 Weighted average shares – diluted 131,599 132,415 Expand Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data) Three Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported $ 406,582 $ 265,908 $ 146,590 $ (25,003 ) $ 15,636 $ 81,754 15.1 % 0.62 Reported as a percent of sales 34.2 % 22.4 % 12.3 % -2.1 % 1.3 % 6.9 % Realignment charges (a) 5,106 1,787 3,319 - 1,318 2,001 39.7 % 0.02 Acquisition related (b) 752 (3,190 ) 3,942 - 927 3,015 23.5 % 0.02 Purchase accounting step-up and intangible asset amortization (c) 2,642 (1,300 ) 3,942 - 1,186 2,756 30.1 % 0.02 Discrete items (d)(e) 42 (382 ) 424 1,500 453 1,471 23.5 % 0.01 Merger transaction costs (f) - (15,515 ) 15,515 - 3,649 11,866 23.5 % 0.09 Below-the-line foreign exchange impacts (g) - - - 20,023 2,910 17,113 14.5 % 0.13 Adjusted $ 415,124 $ 247,308 $ 173,732 $ (3,480 ) $ 26,079 $ 119,976 17.1 % 0.91 Adjusted as a percent of sales 34.9 % 20.8 % 14.6 % -0.3 % 2.2 % 10.1 % Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $1,500 is non-cash. (b) Charge represents acquisition and integration related costs associated with the MOGAS acquisition. (c) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. (d) Charge represents share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (e) Charge of $1,500 represents a pension settlement accounting loss incurred in conjunction with the freeze of our US Qualified pension plan. (f) Charge represents transaction costs incurred associated with the Chart Industries merger. (g) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site's respective functional currency. Three Months Ended June 30, 2024 Gross Profit Selling, General & Administrative Expense Loss on Sale of Business Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported $ 366,096 $ 238,627 $ 12,981 $ 121,304 $ (5,263 ) $ 23,846 $ 72,616 23.8 % 0.55 Reported as a percent of sales 31.6 % 20.6 % 1.1 % 10.5 % -0.5 % 2.1 % 6.3 % Realignment charges (a) 7,521 267 (12,981 ) 20,235 - 1,558 18,677 7.7 % 0.14 Discrete items (b) - (1,100 ) - 1,100 - 259 841 23.5 % 0.01 Discrete asset write-downs (c)(d) - (1,795 ) - 1,795 3,567 1,342 4,020 25.0 % 0.03 Below-the-line foreign exchange impacts (e) - - - - 207 29 178 13.9 % 0.00 Adjusted $ 373,617 $ 235,999 $ - $ 144,434 $ (1,489 ) $ 27,034 $ 96,332 21.3 % 0.73 Adjusted as a percent of sales 32.3 % 20.4 % 0.0 % 12.5 % -0.1 % 2.3 % 8.3 % Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $19,200 is non-cash. (b) Charge represents costs associated with merger and acquisition activity. (c) Charge represents a $1,795 non-cash write-down of a software asset. (d) Charge represents a $3,567 non-cash write-down of a debt investment. (e) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site's respective functional currency. Expand SEGMENT INFORMATION (Unaudited) FLOWSERVE PUMPS DIVISION Three Months Ended June 30, (Amounts in millions, except percentages) 2025 2024 Bookings $ 723.8 $ 898.8 Sales 818.9 812.2 Gross profit 299.2 260.2 Gross profit margin 36.5 % 32.0 % SG&A 142.4 136.1 Segment operating income 162.7 131.0 Segment operating income as a percentage of sales 19.9 % 16.1 % FLOW CONTROL DIVISION Three Months Ended June 30, (Amounts in millions, except percentages) 2025 2024 Bookings $ 354.7 $ 349.2 Sales 371.5 347.7 Gross profit 107.7 106.3 Gross profit margin 29.0 % 30.6 % SG&A 69.9 61.0 Loss on sale of business - (13.0 ) Segment operating income 37.8 32.3 Segment operating income as a percentage of sales 10.2 % 9.3 % Expand Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands) Flowserve Pumps Division Three Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Three Months Ended June 30, 2024 Gross Profit Selling, General & Administrative Expense Operating Income Reported $ 299,229 $ 142,400 $ 162,745 Reported $ 260,215 $ 136,053 $ 130,978 Reported as a percent of sales 36.5 % 17.4 % 19.9 % Reported as a percent of sales 32.0 % 16.8 % 16.1 % Realignment charges (a) 1,888 (1,749 ) 3,637 Realignment charges (a) 7,378 720 6,658 Discrete items (b) 35 (99 ) 134 Adjusted $ 267,593 $ 136,773 $ 137,636 Adjusted $ 301,152 $ 140,552 $ 166,516 Adjusted as a percent of sales 32.9 % 16.8 % 16.9 % Adjusted as a percent of sales 36.8 % 17.2 % 20.3 % Flow Control Division Three Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Three Months Ended June 30, 2024 Gross Profit Selling, General & Administrative Expense Loss on Sale of Business Operating Income Reported as a percent of sales 29.0 % 18.8 % 10.2 % Reported as a percent of sales 30.6 % 17.6 % 3.7 % 9.3 % Realignment charges (a) 3,217 3,504 (287 ) Realignment charges (a) 221 53 (12,981 ) 13,149 Acquisition related (c) 752 (3,190 ) 3,942 Discrete items (b) - (1,100 ) - 1,100 Purchase accounting step-up and intangible asset amortization (d) 2,642 (1,300 ) 3,942 Adjusted $ 106,492 $ 59,987 $ - $ 46,500 Discrete items (b) 5 (99 ) 104 Adjusted as a percent of sales 30.6 % 17.3 % 0.0 % 13.4 % Adjusted $ 114,310 $ 68,838 $ 45,472 Adjusted as a percent of sales 30.8 % 18.5 % 12.2 % Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $1,500 is non-cash. (a) Charges represent realignment costs incurred as a result of realignment programs of which $19,200 is non-cash. (b) Charge represents share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (b) Charge represents costs associated with merger and acquisition activity. (c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition. (d) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. Expand CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Six Months Ended June 30, (Amounts in thousands, except per share data) 2025 2024 Sales $ 2,332,635 $ 2,244,371 Cost of sales (1,556,719 ) (1,539,307 ) Gross profit 775,916 705,064 Selling, general and administrative expense (509,085 ) (467,045 ) Loss on sale of business - (12,981 ) Net earnings from affiliates 11,648 9,344 Operating income 278,479 234,382 Interest expense (39,428 ) (32,233 ) Interest income 4,271 2,343 Other expense, net (42,262 ) (6,137 ) Earnings before income taxes 201,060 198,355 Provision for income taxes (33,379 ) (43,988 ) Net earnings, including noncontrolling interests 167,681 154,367 Less: Net earnings attributable to noncontrolling interests (12,022 ) (7,531 ) Net earnings attributable to Flowserve Corporation $ 155,659 $ 146,836 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 1.19 $ 1.12 Diluted 1.18 1.11 Weighted average shares – basic 131,206 131,583 Weighted average shares – diluted 132,135 132,392 Expand Consolidated Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands, except per share data) Six Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported $ 775,916 $ 509,085 $ 278,479 $ (42,262 ) $ 33,379 $ 155,659 16.6 % 1.18 Reported as a percent of sales 33.3 % 21.8 % 11.9 % -1.8 % 1.4 % 6.7 % Realignment charges (a) 15,121 3,091 12,030 - 3,189 8,841 26.5 % 0.07 Acquisition related (b) 752 (4,471 ) 5,223 - 1,228 3,995 23.5 % 0.03 Purchase accounting step-up and intangible asset amortization (c) 6,117 (2,600 ) 8,717 - 2,547 6,170 29.2 % 0.05 Discrete items (d)(e) 75 (765 ) 840 3,000 903 2,937 23.5 % 0.02 Merger transaction costs (f) - (15,515 ) 15,515 - 3,649 11,866 23.5 % 0.09 Below-the-line foreign exchange impacts (g) - - - 31,396 5,355 26,041 17.1 % 0.20 Adjusted $ 797,981 $ 488,825 $ 320,804 $ (7,866 ) $ 50,250 $ 215,509 18.1 % 1.63 Adjusted as a percent of sales 34.2 % 21.0 % 13.8 % -0.3 % 2.2 % 9.2 % Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $3,000 is non-cash. (b) Charge represents acquisition and integration related costs associated with the MOGAS acquisition. (c) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. (d) Charge represents share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (e) Charge of $3,000 represents a pension settlement accounting loss incurred in conjunction with the freeze of our US Qualified pension plan. (f) Charge represents transaction costs incurred associated with the Chart Industries merger. (g) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site's respective functional currency. Six Months Ended June 30, 2024 Gross Profit Selling, General & Administrative Expense Loss on Sale of Business Operating Income Other Income (Expense), Net Provision For (Benefit From) Income Taxes Net Earnings (Loss) Effective Tax Rate Diluted EPS Reported as a percent of sales 31.4 % 20.8 % 0.6 % 10.4 % -0.3 % 2.0 % 6.5 % Realignment charges (a) 13,194 (1,227 ) (12,981 ) 27,402 - 2,281 25,121 8.3 % 0.19 Discrete items (b)(c) - 900 - (900 ) - 259 (1,159 ) -28.8 % (0.01 ) Discrete asset write-downs (d)(e) - (1,795 ) - 1,795 3,567 1,342 4,020 25.0 % 0.03 Below-the-line foreign exchange impacts (f) - - - - (1,116 ) (22 ) (1,094 ) 2.0 % (0.01 ) Adjusted $ 718,258 $ 464,923 $ - $ 262,679 $ (3,686 ) $ 47,848 $ 173,724 20.9 % 1.31 Adjusted as a percent of sales 32.0 % 20.7 % 0.0 % 11.7 % -0.2 % 2.1 % 7.7 % Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $20,000 is non-cash. (b) Represents a reduction to reserves of $2,000 associated with our ongoing financial exposure in Russia that were adjusted for Non-GAAP measures when established in 2022. (c) Charge represents $1,100 of costs associated with merger and acquisition activity. (d) Charge represents a $1,795 non-cash write-down of a software asset. (e) Charge represents a $3,567 non-cash write-down of a debt investment. (f) Below-the-line foreign exchange impacts represent the remeasurement of foreign exchange derivative contracts as well as the remeasurement of assets and liabilities that are denominated in a currency other than a site's respective functional currency. Expand SEGMENT INFORMATION (Unaudited) FLOWSERVE PUMPS DIVISION Six Months Ended June 30, (Amounts in millions, except percentages) 2025 2024 Bookings $ 1,576.1 $ 1,602.2 Sales 1,602.1 1,581.6 Gross profit 567.7 508.2 Gross profit margin 35.4 % 32.1 % SG&A 280.1 275.8 Segment operating income 299.3 241.9 Segment operating income as a percentage of sales 18.7 % 15.3 % FLOW CONTROL DIVISION Six Months Ended June 30, (Amounts in millions, except percentages) 2025 2024 Bookings $ 730.4 $ 689.9 Sales 735.6 668.2 Gross profit 207.9 199.0 Gross profit margin 28.3 % 29.8 % SG&A 138.6 119.0 Loss on sale of business - (13.0 ) Segment operating income 69.3 67.0 Segment operating income as a percentage of sales 9.4 % 10.0 % Expand Segment Reconciliation of Non-GAAP Financial Measures to the Most Directly Comparable GAAP Financial Measure (Unaudited) (Amounts in thousands) Flowserve Pumps Division Six Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Six Months Ended June 30, 2024 Gross Profit Selling, General & Administrative Expense Operating Income Reported $ 567,691 $ 280,080 $ 299,259 Reported $ 508,153 $ 275,763 $ 241,872 Reported as a percent of sales 35.4 % 17.5 % 18.7 % Reported as a percent of sales 32.1 % 17.4 % 15.3 % Realignment charges (a) 4,867 (751 ) 5,618 Realignment charges (a) 12,422 (321 ) 12,743 Discrete items (b) 63 (224 ) 287 Discrete item (b) - 2,000 (2,000 ) Adjusted $ 572,621 $ 279,105 $ 305,164 Adjusted $ 520,575 $ 277,442 $ 252,615 Adjusted as a percent of sales 35.7 % 17.4 % 19.0 % Adjusted as a percent of sales 32.9 % 17.5 % 16.0 % Flow Control Division Six Months Ended June 30, 2025 Gross Profit Selling, General & Administrative Expense Operating Income Six Months Ended June 30, 2024 Gross Profit Selling, General & Administrative Expense Loss on Sale of Business Operating Income Reported $ 207,881 $ 138,627 $ 69,254 Reported $ 198,966 $ 119,026 $ 12,981 $ 66,959 Reported as a percent of sales 28.3 % 18.8 % 9.4 % Reported as a percent of sales 29.8 % 17.8 % 1.9 % 10.0 % Realignment charges (a) 10,319 3,625 6,694 Realignment charges (a) 988 (61 ) (12,981 ) 14,030 Acquisition related (c) 752 (4,471 ) 5,223 Discrete item (c) - (1,100 ) - 1,100 Purchase accounting step-up and intangible asset amortization (d) 6,117 (2,600 ) 8,717 Adjusted $ 199,954 $ 117,865 $ - $ 82,089 Discrete items (b) 9 (163 ) 172 Adjusted as a percent of sales 29.9 % 17.6 % 0.0 % 12.3 % Adjusted $ 225,078 $ 135,018 $ 90,060 Adjusted as a percent of sales 30.6 % 18.4 % 12.2 % Note: Amounts may not calculate due to rounding Note: Amounts may not calculate due to rounding (a) Charges represent realignment costs incurred as a result of realignment programs of which $3,000 is non-cash. (a) Charges represent realignment costs incurred as a result of realignment programs of which $20,000 is non-cash. (b) Charge represents share-based compensation expense associated with a one-time discretionary restricted stock grant, subject to three-year cliff vesting, provided to certain employees in conjunction with the freeze of our US Qualified pension plan. (b) Represents a reduction to reserves associated with our ongoing financial exposure in Russia that were adjusted for Non-GAAP measures when established in 2022. (c) Charge represents acquisition and integration-related costs associated with the MOGAS acquisition. (c) Charge represents costs associated with merger and acquisition activity. (d) Charge represents amortization of step-up in value of acquired inventories and acquisition related intangible assets associated with the MOGAS acquisition. Expand Second Quarter and Year-to-Date 2025 - Segment Results (dollars in millions, comparison vs. 2024 second quarter and year-to-date, unaudited) FPD FCD 2nd Qtr Full Year 2nd Qtr Full Year Bookings $ 723.8 $ 1,576.1 $ 354.7 $ 730.4 - vs. prior year -175.1 -19.5 % -26.2 -1.6 % 5.4 1.6 % 40.5 5.9 % - on constant currency -185.0 -20.6 % -15.8 -1.0 % 3.5 1.0 % 43.5 6.3 % Sales $ 818.9 $ 1,602.1 $ 371.5 $ 735.6 - vs. prior year 6.8 0.8 % 20.5 1.3 % 23.8 6.8 % 67.3 10.1 % - on constant currency -2.3 -0.3 % 30.3 1.9 % 20.4 5.9 % 69.3 10.4 % Gross Profit $ 299.2 $ 567.7 $ 107.7 $ 207.9 - vs. prior year 15.0 % 11.7 % 1.3 % 4.5 % Gross Margin (% of sales) 36.5 % 35.4 % 29.0 % 28.3 % - vs. prior year (in basis points) 450 bps 330 bps (160) bps (150) bps Operating Income $ 162.7 $ 299.3 $ 37.8 $ 69.3 - vs. prior year 31.8 24.2 % 57.4 23.7 % 5.5 17.1 % 2.3 3.4 % - on constant currency 29.4 22.5 % 58.5 24.2 % 5.6 17.2 % 3.1 4.7 % Operating Margin (% of sales) 19.9 % 18.7 % 10.2 % 9.4 % - vs. prior year (in basis points) 380 bps 340 bps 90 bps (60) bps Adjusted Operating Income * $ 166.5 $ 305.2 $ 45.5 $ 90.1 - vs. prior year 28.9 21.0 % 52.5 20.8 % -1.0 -2.2 % 8.0 9.7 % - on constant currency 26.5 19.3 % 53.7 21.2 % -1.0 -2.2 % 8.8 10.7 % Adj. Oper. Margin (% of sales)* 20.3 % 19.0 % 12.2 % 12.2 % - vs. prior year (in basis points) 340 bps 300 bps (120) bps (10) bps Backlog $ 1,980.7 $ 880.9 * Adjusted Operating Income and Adjusted Operating Margin exclude realignment charges and other specific discrete items Expand CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, (Amounts in thousands, except par value) 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 629,203 $ 675,441 Accounts receivable, net of allowance for expected credit losses of $91,911 and $79,059, respectively 1,049,817 976,739 Contract assets, net of allowance for expected credit losses of $4,577 and $3,404, respectively 339,355 298,906 Inventories 864,532 837,254 Prepaid expenses and other 121,121 116,157 Total current assets 3,004,028 2,904,497 Property, plant and equipment, net of accumulated depreciation of $1,223,841 and $1,142,667, respectively 558,345 539,703 Operating lease right-of-use assets, net 163,171 159,400 Goodwill 1,337,747 1,286,295 Deferred taxes 224,017 221,742 Other intangible assets, net 182,489 188,604 Other assets, net of allowance for expected credit losses of $65,830 and $66,081, respectively 212,728 200,580 Total assets $ 5,682,525 $ 5,500,821 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 573,433 $ 545,310 Accrued liabilities 495,425 561,486 Contract liabilities 283,181 283,670 Debt due within one year 44,870 44,059 Operating lease liabilities 33,473 33,559 Total current liabilities 1,430,382 1,468,084 Long-term debt due after one year 1,440,676 1,460,132 Operating lease liabilities 148,806 149,838 Retirement obligations and other liabilities 383,659 371,055 Shareholders' equity: Preferred shares, $1.00 par value - - Shares authorized – 1,000, no shares issued Common shares, $1.25 par value 220,991 220,991 Shares authorized – 305,000 Shares issued – 176,793 and 176,793, respectively Capital in excess of par value 489,530 502,045 Retained earnings 4,125,669 4,025,750 Treasury shares, at cost – 46,233 and 45,688 shares, respectively (2,036,348 ) (2,007,869 ) Deferred compensation obligation 6,413 8,172 Accumulated other comprehensive loss (583,204 ) (741,424 ) Total Flowserve Corporation shareholders' equity 2,223,051 2,007,665 Noncontrolling interests 55,951 44,047 Total equity 2,279,002 2,051,712 Total liabilities and equity $ 5,682,525 $ 5,500,821 Expand CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended June 30, (Amounts in thousands) 2025 2024 Cash flows – Operating activities: Net earnings, including noncontrolling interests $ 167,681 $ 154,367 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 38,695 37,883 Amortization of intangible and other assets 9,589 4,391 Loss on sale of business - 12,981 Stock-based compensation 18,822 17,400 Foreign currency, asset write downs and other non-cash adjustments (877 ) 10,935 Change in assets and liabilities: Accounts receivable, net (22,631 ) (168,540 ) Inventories 14,208 3,603 Contract assets, net (28,930 ) (13,267 ) Prepaid expenses and other, net 13,589 10,945 Accounts payable (10,414 ) 14,376 Contract liabilities (15,254 ) 10,894 Accrued liabilities (84,466 ) (47,795 ) Retirement obligations and other liabilities (3,138 ) 4,402 Net deferred taxes 7,338 (3,100 ) Net cash flows provided by operating activities 104,212 49,475 Cash flows – Investing activities: Capital expenditures (28,340 ) (28,289 ) Proceeds from disposal of assets 867 - Payments for disposition of business - (2,352 ) Other - 551 Net cash flows (used) by investing activities (27,473 ) (30,090 ) Cash flows – Financing activities: Payments on term loan (18,750 ) (30,000 ) Proceeds under revolving credit facility 50,000 100,000 Payments under revolving credit facility (50,000 ) (25,000 ) Proceeds under other financing arrangements 3,072 562 Payments under other financing arrangements (1,231 ) (1,460 ) Repurchases of common shares (52,797 ) (16,161 ) Payments related to tax withholding for stock-based compensation (11,337 ) (9,093 ) Payments of dividends (55,209 ) (55,259 ) Contingent consideration payment related to acquired business (15,000 ) - Other (3,192 ) (272 ) Net cash flows (used) by financing activities (154,444 ) (36,683 ) Effect of exchange rate changes on cash and cash equivalents 31,467 (13,297 ) Net change in cash and cash equivalents (46,238 ) (30,595 ) Cash and cash equivalents at beginning of period 675,441 545,678 Cash and cash equivalents at end of period $ 629,203 $ 515,083 Expand About Flowserve: Flowserve Corporation is one of the world's leading providers of fluid motion and control products and services. Operating in more than 50 countries, the Company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the Company's website at Safe Harbor Statement: This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "forecasts," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations and financial performance and condition. The forward-looking statements included in this news release are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following: global supply chain disruptions and the current inflationary environment could adversely affect the efficiency of our manufacturing and increase the cost of providing our products to customers; a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins; changes in global economic conditions and the potential for unexpected cancellations or delays of customer orders in our reported backlog; our dependence on our customers' ability to make required capital investment and maintenance expenditures; if we are not able to successfully execute and realize the expected financial benefits from any restructuring and realignment initiatives, our business could be adversely affected; the substantial dependence of our sales on the success of the energy, chemical, power generation and general industries; the adverse impact of volatile raw materials prices on our products and operating margins; economic, political and other risks associated with our international operations, including military actions, trade embargoes, epidemics or pandemics and changes to tariffs or trade agreements that could affect customer markets, particularly North African, Latin American, Asian and Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/re-export control, foreign corrupt practice laws, economic sanctions and import laws and regulations; the impact of public health emergencies, such as outbreaks of epidemics, pandemics, and contagious diseases, on our business and operations; increased aging and slower collection of receivables, particularly in Latin America and other emerging markets; potential adverse effects resulting from the implementation of new tariffs and related retaliatory actions and changes to or uncertainties related to tariffs and trade agreements; our exposure to fluctuations in foreign currency exchange rates, including in hyperinflationary countries such as Argentina; potential adverse consequences resulting from litigation to which we are a party, such as litigation involving asbestos-containing material claims; expectations regarding acquisitions and the integration of acquired businesses; the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets; our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations; the highly competitive nature of the markets in which we operate; if we are not able to maintain our competitive position by successfully developing and introducing new products and integrate new technologies, including artificial intelligence and machine learning; environmental compliance costs and liabilities; potential work stoppages and other labor matters; access to public and private sources of debt financing; our inability to protect our intellectual property in the United States, as well as in foreign countries; obligations under our defined benefit pension plans; our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud; the recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could affect our operating results; our information technology infrastructure could be subject to service interruptions, data corruption, cyber-based attacks or network security breaches, which could disrupt our business operations and result in the loss of critical and confidential information; ineffective internal controls could impact the accuracy and timely reporting of our business and financial results; and other factors described from time to time in our filings with the Securities and Exchange Commission. All forward-looking statements included in this news release are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement. The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that non-GAAP financial measures which exclude certain non-recurring items present additional useful comparisons between current results and results in prior operating periods, providing investors with a clearer view of the underlying trends of the business. Management also uses these non-GAAP financial measures in making financial, operating, planning and compensation decisions and in evaluating the Company's performance. Non-GAAP financial measures, which may be inconsistent with similarly captioned measures presented by other companies, should be viewed in addition to, and not as a substitute for, the Company's reported results prepared in accordance with GAAP.
USA Today
a day ago
- Sport
- USA Today
ESPN reporter Holly Rowe shares possible timeline for Caitlin Clark return from injury
During the nationally broadcast 93-78 Indiana Fever win over the Chicago Sky from the United Center on Sunday afternoon, ESPN reporter Holly Rowe provided a more in-depth update on Caitlin Clark's injury and when the former Hawkeye could be expected to return to action. Clark, who has remained out since July 15 after suffering a right groin injury against the Connecticut Sun, remains a constant presence on the bench for the Fever as the team plays without its franchise cornerstone. '[Clark] did see a specialist last week, and no additional injury was found in that exam and scans. Stephanie White did tell us that they will be even more cautious in their approach to her return to play this time. 'Last time when she came back from injury, she didn't get any practice time [or] any time to ramp up her conditioning. This time, they're going to make sure she has time and practice to get rhythm and time with her teammates," Rowe said. Sunday's game marked the fourth consecutive game Clark has missed due to the right groin ailment. In total, Clark has now been absent for 13 regular season games with three different injury setbacks. Rowe finished her report on Clark by pointing to the Fever's schedule, which features a five-day break around the third week of August, between Indiana's Aug. 17 road game against the Connecticut Sun and their Aug. 22 home game against the Minnesota Lynx. While admitting that Clark remains "day-to-day" according to the team, Rowe alluded to the specific window between games as an ideal timetable for a potential return, given the star guard's ability to secure a few more days of practice during that period. As you look at their schedule, the third week in August provides a few more practice days where that seems like it's realistic. While she does remain day-to-day, that seems like a better timetable for a possible Caitlin Clark return," Rowe said. As for the immediate future, Indiana (14-12) will look to continue their confident play when the team returns home to Gainbridge Fieldhouse for a matchup against former teammate DeWanna Bonner and the Phoenix Mercury (16-9) on Wednesday, July 30. The game is scheduled to start at 6 p.m. CT and will air on ESPN3. Contact/Follow us @HawkeyesWire on X (formerly Twitter) and like our page on Facebook to follow ongoing coverage of Iowa news, notes, and opinions. Follow Scout on X: @SpringgateNews.
National Observer
4 days ago
- General
- National Observer
Toronto Zoo to become home of Cedar, a blind baby moose rescued near Ottawa
The Toronto Zoo will soon become home to a blind baby moose who was rescued near Ottawa earlier this month. The two-month-old baby moose, now named Cedar, was found by an animal rescue group on a rural road in Hawkesbury, Ont. Cedar was brought to Holly's Haven Wildlife Rescue, where he spent the last three weeks getting professional veterinary aid and care. "The moose calf was blind and wandering on its own with no sight of a mother," said Lynne Rowe, the rescue organization's director of operations. Rowe said staff immediately set up a room to assess Cedar's health, and found he has partial sight in one eye. By the next day, a small outdoor enclosure was created for him to move into. While Rowe said they would usually turn to Aspen Valley Wildlife Sanctuary in Rosseau, Ont., to secure permanent shelter for rescued animals, they were told the sanctuary was at capacity with moose. So Rowe shifted gears and reached out to the Toronto Zoo, which they said felt like a "fantastic alternative." The two-month-old blind moose has been receiving veterinary care while sheltered at Holly's Haven Wildlife Rescue. In order to get Cedar to the zoo, Rowe had to obtain approval from the provincial Ministry of Natural Resources. It came in within a day of applying. "Moose cannot be taken out of the wild to be put in a zoo," Rowe explained. The only way a native Canadian animal like a moose can end up in an enclosure is if it is deemed unfit to be released back into the wild. Dolf DeJong, CEO of the Toronto Zoo, said the zoo has a suitable moose enclosure and would be happy to welcome Cedar. A full zoonotic disease scan and other risk assessment steps will be taken before the move. "Anytime you're moving ungulates around the province, that's really important," DeJong said. "Our veterinarians will connect with their veterinarians now so we can get a full understanding of Cedar's condition and make sure we're able to provide that support he needs for him to thrive." DeJong said the best-case scenario would have been for the animal to be healthy and released back into the wild. But there are upsides to this alternative solution. "Many Canadians don't have the chance to see a moose, have never realized that they are massive, incredible animals with really fun diets and some really unique adaptations," he said. "And if he needs a forever home, we're excited to be able to share that story and to provide that care for him." At this time, DeJong said there is no set date for when Cedar will be moved to the zoo or when visitors can see him. The priority is making sure Cedar is in good health, he said. "This is a visually impaired moose who will have his list of challenges. So our team will be doing their homework to make sure he's got the highest probability of success possible," he said. "He's certainly been through a lot," DeJong said. "It's an honour and a duty we don't take lightly." Cedar will continue living at Holly's Haven until he is cleared by vets to be in good shape to travel and all required paperwork at the zoo's end is complete, Rowe said. "I'm very eager to see him settled into his new place," Rowe said. "I will definitely visit him at some point in the future."
