Flowserve Corp. has issued its initial guidance for full year 2014 and given an early anticipation of its 2013 performance, citing quality backlog and solid booking trends among its reasons for cautious optimism.
A leading provider of flow control products and services, Flowserve expects a combination of aftermarket growth, larger project activity, and prospects in bolt-on acquisitions to deliver ‘meaningful opportunities’ for the company and its shareholders’ in 2014.
In previewing its fourth quarter and full year 2013 results, Flowserve anticipates Q4 2013 revenues of almost $1.4bn, including an increased original equipment sales mix. Bookings for Q4 2013 were approximately $1.25bn, the fourth consecutive quarter of sequential quarterly growth and an increase of over 15% compared to Q4 2012.
The company also announced full year bookings of approximately $4.9bn, an increase of 3.6% (or 4.2% excluding currency effects) compared to the prior year full year 2013 bookings – with aftermarket bookings comprising approximately 41% of the total.
Total order backlog at 31st December 2013 was approximately $2.6 bn.
Based upon this and a number of other dynamics in the year ahead, Flowserve issued its 2014 initial guidance and Mark A. Blinn, President and CEO, commented, “Our company has made substantial progress over the last few years, and we expect to leverage these improvements into a fourth consecutive year of double-digit EPS growth.”
“Although global economic indicators are mixed, we remain cautiously optimistic for 2014 given our quality backlog, solid booking trends, improving operational performance and the diversity of our served end markets and geographies. These characteristics, combined with our growing run-rate original equipment business and aftermarket franchise, as well as a shareholder-focused capital allocation policy, have built the foundation for our anticipated earnings growth.”
Mike Taff, Flowserve’s Senior Vice-President and CFO, added, “We expect to produce another year of solid earnings growth in 2014, built upon modest revenue growth combined with a quality backlog, ongoing operational improvements, cost leverage and our capital allocation policy. This approach has delivered three years of solid earnings growth, even during periods with more challenging macroeconomic conditions and foreign currency headwinds, and we expect 2014 to continue this trend.”
Flowserve plans to file its 2013 Annual Report on Form 10-K and announce fourth quarter and full year 2013 financial results after the markets have closed on 19th February (2014).